Vince Cable is right to support British business in procurement

Have Britain’s politicians finally realised that EU rules are not an impediment to an active industrial policy?

Today Vince Cable told the BBC that the British government must be more "strategic" in how it procures, so that "as much as possible goes to British businesses". Far from incurring the wrath of the European Union, the evidence suggests that this new course of action would see Britain finally joining the European club.

Since 2000 the European Commission has initiated only 10 infringement proceedings against the UK for procurement violations. In contrast it has initiated 63 against Germany, 52 against Italy, 31 against Spain, 20 against France and 12 against the Netherlands. Infringement proceedings are initiated when the Commission believes that a member state has broken the rules. Britain is an outlier when it comes to procurement; strategic support for domestic firms is the norm.

Not only is "strategic" procurement the norm but it does not necessarily result in a protectionist "race to the bottom". Despite Germany topping the infringement rankings, German firms are also the most successful in winning foreign procurement contracts in Europe. German firms captured 26 per cent of the market between 2007 and 2009, Dutch firms captured 10 per cent, Italian firms 7 per cent and French firms 5 per cent. British firms came in second with 17 per cent of the market.

As well as procurement, Vince Cable also talked about supporting strategic industries, such as aerospace, where the UK has a comparative advantage. Financial support for domestic firms or industries, like discriminatory procurement, is also supposedly banned by the EU. However, here again the evidence suggests that Britain’s approach is out of kilter with the rest of Europe.

According to the European Commission, in a typical year between 1992 and 2010 Britain spent only 0.45 per cent of its total public spending on the economy on manufacturing, including many of the sectors, such as life-sciences and aerospace, which the Business Secretary touted. In contrast, in a typical year over the same period France spent 7.67 per cent, Germany spent 13.29 per cent, Italy spent 8.66 per cent and Spain spent 16.36 per cent. In terms of total spending in support of their economies, Germany spent, in a typical year between 1992 and 2010, £16.64 billion more than the UK and France spent £9.17 billion more.

In supporting their manufacturing sectors many of these countries incurred the ire of the Commission. As of June 2010, the last data available, Spain had 15 cases of state aid that had been determined illegal by the European Commission and needed paying back, Italy had 14, Germany had 7 and France had 5. The UK had only 1 case of state aid declared illegal. Once again, Britain is an outlier.

It is ironic that the UK, a country regularly singled out for its ambivalence, even opposition, towards the European Union is often found to be one of the most committed adherents to EU rules. When Bombardier failed to win the Thameslink procurement contract last year, politicians of both parties blamed one another and the EU rules. Vince Cable’s pronouncement today hopefully indicates that British politicians are finally realising the folly of this. When it comes to conducting an active industrial policy, EU rules are no impediment, just ask Europe.

Stephen Clarke is a Research Fellow at Civitas

Vince Cable. Photograph: Getty Images

Selling Circuits Short: Improving the prospects of the British electronics industry by Stephen L. Clarke and Georgia Plank was released yesterday by Civitas. It is available on PDF and Amazon Kindle

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Meet Anne Marie Waters - the Ukip politician too extreme for Nigel Farage

In January 2016, Waters launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). 

There are few people in British political life who can be attacked from the left by Nigel Farage. Yet that is where Anne Marie Waters has found herself. And by the end of September she could well be the new leader of Ukip, a party almost synonymous with its beer-swilling, chain-smoking former leader.

Waters’s political journey is a curious one. She started out on the political left, but like Oswald Mosley before her, has since veered dramatically to the right. That, however, is where the similarities end. Waters is Irish, agnostic, a lesbian and a self-proclaimed feminist.

But it is her politics – rather than who she is – that have caused a stir among Ukip’s old guard. Former leader Paul Nuttall has said that her views make him “uncomfortable” while Farage has claimed Ukip is “finished” if, under her leadership, it becomes an anti-Islam party.

In her rhetoric, Waters echoes groups such as the English Defence League (EDL) and Britain First. She has called Islam “evil” and her leadership manifesto claims that the religion has turned Britain into a “fearful and censorious society”. Waters wants the banning of the burqa, the closure of all sharia councils and a temporary freeze on all immigration.

She started life in Dublin before moving to Germany in her teens to work as an au pair. Waters also lived in the Netherlands before returning to Britain to study journalism at Nottingham Trent University, graduating in 2003. She subsequently gained a second degree in law. It was then, she says, that she first learnt about Islam, which she claims treats women “like absolute dirt”. Now 39, Waters is a full-time campaigner who lives in Essex with her two dogs and her partner who is an accountant.

Waters’s first spell of serious activism was with the campaign group One Law for All, a secularist organisation fronted by the Iranian feminist and human rights activist Maryam Namazie. Waters resigned in November 2013 after four years with the organisation. According to Namazie, Waters left due to political disagreements over whether the group should collaborate with members of far-right groups.

In April 2014, Waters founded Sharia Watch UK and, in January 2016, she launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). The group was established as a British chapter of the German-based organisation and was set up to counter what it called the “Islamisation of our countries”. By the summer of 2016, it had petered out.

Waters twice stood unsuccessfully to become a Labour parliamentary candidate. Today, she says she could not back Labour due to its “betrayal of women” and “betrayal of the country” over Islam. After joining Ukip in 2014, she first ran for political office in the Lambeth council election, where she finished in ninth place. At the 2015 general election, Waters stood as the party’s candidate in Lewisham East, finishing third with 9.1 per cent of the vote. She was chosen to stand again in the 2016 London Assembly elections but was deselected after her role in Pegida UK became public. Waters was also prevented from standing in Lewisham East at the 2017 general election after Ukip’s then-leader Nuttall publicly intervened.

The current favourite of the 11 candidates standing to succeed Nuttall is deputy leader Peter Whittle, with Waters in second. Some had hoped the party’s top brass would ban her from standing but last week its national executive approved her campaign.

Due to an expected low turnout, the leadership contest is unpredictable. Last November, Nuttall was elected with just 9,622 votes. More than 1,000 new members reportedly joined Ukip in a two-week period earlier this year, prompting fears of far-right entryism.

Mike Hookem MEP has resigned as Ukip’s deputy whip over Waters’ candidacy, saying he would not “turn a blind eye” to extremism. By contrast, chief whip, MEP Stuart Agnew, is a supporter and has likened her to Joan of Arc. Waters is also working closely on her campaign with Jack Buckby, a former BNP activist and one of the few candidates to run against Labour in the by-election for Jo Cox’s former seat of Batley and Spen. Robinson is another backer.

Peculiarly for someone running to be the leader of a party, Waters does not appear to relish public attention. “I’m not a limelight person,” she recently told the Times. “I don’t like being phoned all the time.”

The journalist Jamie Bartlett, who was invited to the initial launch of Pegida UK in Luton in 2015, said of Waters: “She failed to remember the date of the demo. Her head lolled, her words were slurred, and she appeared to almost fall asleep while Tommy [Robinson] was speaking. After 10 minutes it all ground to an uneasy halt.”

In an age when authenticity is everything, it would be a mistake to underestimate yet another unconventional politician. But perhaps British Muslims shouldn’t panic about Anne Marie Waters just yet.

James Bloodworth is editor of Left Foot Forward

This article first appeared in the 17 August 2017 issue of the New Statesman, Trump goes nuclear