Anti-TTIP protesters take to the streets. Photo: Getty Images
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People's concerns over TTIP must be heard

Public anxiety over the Trans-Atlantic Trade Partnership (TTIP) must be listened to, and addressed. 

An important vote was passed in the trade committee (INTA) of the European Parliament today, which will impact upon the future of a trade deal currently under negotiation between the European Union and the United States. If passed, the Transatlantic Trade and Investment Partnership, or TTIP, will be the biggest agreement of its kind, shaping the rules governing a quarter of all global trade. It is also the issue about which I have received an unprecedented number of emails from constituents and campaign groups. Emails expressing concern that TTIP will lead to reduced transparency and accountability, pressures on wages and social dumping, a weakening of health and safety standards and a hampering of our efforts to tackle climate change.

I want to ensure that we get the best deal for European citizens. A positive outcome on TTIP could present a unique opportunity to regulate globalisation and to promote the high standards on which the European Union (EU) prides itself. This can only be achieved if the people it will affect are given the chance to have their say.

As Member of the European Parliament (MEP), member of the European trade committee and the European Labour Party's spokesperson on TTIP, it is my duty to ensure that these voices are heard in Brussels and Strasbourg, and since being elected in May last year I have made this a priority. I have met with hundreds of campaigners, attended dozens of events and written at length on the state of play in the Parliament. I have listened to the public's concerns and tried to explain in the clearest terms possible the complicated process of negotiations, so that UK citizens know what is and isn't at stake.

It is important to note that it's the European Commission, not the European Parliament, which leads negotiations on trade deals in the EU. In fact, MEPs have no role in the negotiating process at all. What we do have is the power to veto any trade deal that does not satisfy our demands or the demands of our constituents. This is a blunt tool - MEPs can only say yes or no - however the threat of a negative vote means that we can have an influence on negotiations, however indirect. Knowing that MEPs will have the final say, it would be very unwise for the Commission not to take into account the Parliament's position on TTIP.

As such, the Socialists and Democrats in the European Parliament, together with other progressive political groups, have wasted no time in making clear what we are willing to accept in a final trade deal, and what we would reject. We have consistently pushed for the current European Parliament to formally adopt a position on TTIP, to set out in advance our conditions for supporting any deal with the US.

But in order to get this resolution, we need the numbers. Since we don't command a majority on our own, or even together with the greens and the radical left, this means agreeing common demands with the conservatives and / or liberals.

In this context, this week was a brilliant first step forward. A resolution adopted in the trade committee set out our position on a wide array of issues. It is, however, just a first step: the texts adopted in committee (by 41 MEPs) will then be voted by the plenary of the European Parliament, which will confirm the position on TTIP of all 751 MEPs. This crucial second vote will take place on 10th June 2015.

One such position contained in this resolution calls for an assurance that all public services - including the NHS, water, social services, social security and education - are exempt from the scope of an EU-US trade deal. Importantly, we have also demanded that national and local authorities retain the full right re-nationalise any public services currently under private control. In the context of the rapid privatisation of the NHS currently being overseen by the Conservatives, the inclusion of this clause will be highly significant for any future UK government wishing to reverse such a trend.

Anyone that has heard David Cameron call our concerns for the NHS "nonsense" last November will appreciate the significance of this victory.

This resolution is largely based on recommendations we've received from public services users, providers and employees. It was already the position of the Labour Party and European Socialists. It is now the position of the trade committee, and hopefully it will become the position of the whole European Parliament on 10 June.

We have also managed to secure strong provisions to defend binding labour safeguards in a future agreement, so as to prevent social dumping. The outcome on standards is significant, too. The text we agreed on the infamous "regulatory cooperation", which some multinationals and Tory MEPs view as a way to bypass Parliament in order to slash our standards, is a clear rejection of undemocratic power-grabbing of any kind. 

Finally, the outcome reached in the trade committee on private tribunals - known as Investor State Dispute Settlement or ISDS - is an important victory, even if it is not ideal. I had tabled an unambiguous amendment against ISDS, for which I had gathered the support of 66 Socialist MEPs.

My position on ISDS is clear. While we may include investment protection rules in trade deals, I do not believe that these rules should be enforced through special private tribunals in which multinationals can secretly sue governments for implementing policies that threaten their current and future profit margins. I have defended the use of national courts in TTIP, and I'm sympathetic to the idea of creating an international tribunal in the medium- or long-run so that all countries have access to the same system. However any outcome that threatens elected policymakers from implementing laws as they see fit is nothing short of unacceptable, and I will vote against any such measure.

The position adopted this week is a compromise on my amendment, though it nonetheless favours the use of public courts instead of any investor-state dispute settlement mechanism. To me this means no ISDS in TTIP.

This is not the end of our fight. On 10 June, the text we adopted this week in committee will be put to the vote in a plenary session of the European Parliament. This will give us the opportunity to table amendments again, and I will continue to press for a strong position from the Parliament that includes an explicit rejection of ISDS. Labour MEPs will of course support such a move, but in order to win this vote we will need the support of Tory, UKIP and Lib-Dem Members, too. This week's vote is proof that when the people make enough noise, MEPs with the power to influence positive change listen. Another big push to convince those politicians not already on side - via social media, via letters and emails and via collective public action - could make all the difference. As we approach this important next hurdle, I urge you to all to make your voices heard loud and clear.


Jude Kirton-Darling is Labour MEP for the North East of England

Photo: Getty Images
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The twelve tricks in George Osborne's spending review

All Chancellors use chicanery, and George Osborne is no exception.

There is no great shame to a wheeze: George Osborne is no more or less partial to them than other Chancellors before him. Politicians have been wheezing away since history began. Wheezes aren’t even necessarily bad policy: sometimes they’re sensible as well as slightly sneaky. And we shouldn’t overstate their significance: the biggest changes announced yesterday were described in a clear, honest and non-wheezy way.

But it’s fun to try to spot the wheezes. Here are some we’ve found so far.


  1. Give people less time to pay their tax bills. Yesterday the Chancellor announced tax rises that will raise, in total, a net £5.5bn in 2019-20. A sixth of that total – £900m – results from the announcement that, from April 2019, anyone paying Capital Gains Tax (CGT) on the sale of a house will have to cough up within 30 days. Has the Chancellor made a strategic decision to increase taxes to pay for public services? Not really – he’s just moved some tax forward from the subsequent year to help his numbers stack up, at the price of bigger hassle for people who are selling houses. Not necessarily a bad thing – but a classic wheeze.


  1. Dress up a spending cut as a minor bureaucratic change. The Treasury yesterday announced what sounds like a sensible administrative change to the Government’s scheme for automatically enrolling people into pensions: “to simplify the administration of automatic enrolment for the smallest employers in particular, the next two phases of minimum contribution rate increases will be aligned to the tax years”. Nice of them to reduce bureaucratic hassle for the smallest employers. This also happens to save the Government £450m in 2018-19, because instead of paying an increased subsidy into people’s pensions from January 2018, it will do it from April 2018.


  1. “Tuck under”.  The phrase “tucking under” is a Whitehall term of art, best illustrated with an example. We learnt yesterday that “DfID [the Department for International Development] will remain the UK’s primary channel for aid, but to respond to the changing world, more aid will be administered by other government departments, drawing on their complementary skills.” That sounds like great joined-up government. It also, conveniently, means that the Government can continue to meet its target of keeping overseas aid at 0.7% of Gross National Income, without having to increase DfID’s budget at the same rate as GNI: instead, other departments pick up the slack. Those bits of other departments’ budgets have thus been “tucked under” the ODA protection. See also: the Government is “protecting” the schools budget in real terms, while slashing around £600m from the funding it gives to local authorities to support schools, so that schools will now have to buy those services from their “protected” funding – thus “tucking” the £600m “under” the protected schools budget. (See also: in the last Parliament, the Government asked the NHS to contribute to social care funding, thus “tucking” some social care “under” the protected health budget.)


  1. Cumulative numbers. Most of the figures used in the Spending Review are “in-year” figures: when the Government says it is giving £10bn more to the NHS, it means that the NHS will get £10bn more in 2019-20 than it got in 2015-16. Then you read something like: “The Spending Review and Autumn Statement provides investment of over £1.3 billion up to 2019-20 to attract new teachers into the profession.” That’s not £1.3bn per year – it’s the cumulative figure over four years.


  1. Deploy weasel words. The government is protecting “the national base rate per student for 16-19 year olds”. Sounds great – and it will be written up in many places as “Government protects 16-19 education”. But the word “base” is doing a lot of work here. Schools and colleges that educate 16-19 year olds currently get a lot of funding on top of the “base rate” – such as extra funding for disadvantaged students. Plans for that funding have not yet been revealed.


  1. Pretend to hypothecate a tax. The Chancellor announced yesterday that – because the EU won’t allow him to reduce the ‘tampon tax’ – he’ll instead use the proceeds of that tax to pay for grants to women’s charities. This sounds great – but all he’s really saying is that, among all the many other millions of pounds of grants issued by the government to various causes, £15m will be given to some women’s charities, which might have got that funding anyway. It’s not real hypothecation: it’s not as if women’s charities will get more if there’s a spike in tampon sales. See also: announcing that local authorities can raise council tax so long as they use it to pay for social care – LAs would probably have spent just as much on social care anyway (and other services would have suffered).


  1. Shave away a small fraction of a big commitment. The Conservative party made great play in the election campaign of its commitment to provide 30 hours of free childcare to 3 and 4 year olds in working families. In the July Budget, it made more great play of re-committing to this. Yesterday, it announced that “working families” excluded any parent working less than the equivalent of 16 hours at the minimum wage, or more than £100,000. That sounds like a fairly small change – but it saves the Government £125m in 2020.


  1. Turn a grant into a loan. If government gives someone a grant, that is counted as spending and increases the public sector deficit. If instead the government gives someone a loan, that doesn’t count against the deficit, because it’s assumed that the loan will be paid back (so the loan is like an asset which the Government is holding). Recently we’ve seen a lot of government grants turning into loans – in the July Budget it was student maintenance grants; yesterday it was bursaries for trainee nurses.


  1. “Reverse” a decision that hasn’t happened yet. In 2012 the Government announced that, from April 2016, it would remove the 3% “diesel supplement” that puts a higher tax on company cars that use diesel than on others. Yesterday, it cancelled this, saving over £265m per year for the rest of the Parliament. People complain less about you cancelling a tax cut when you haven’t done the tax cut yet. (Perhaps this doesn’t qualify as a full wheeze, but there’s something wheezy about it.)


  1. “Protect” things in cash terms. If you really want to protect an area of spending, you should at least increase it in line with inflation, so that it can still buy the same amount of stuff. This government – like the Coalition before it – enjoys protecting things only in cash terms. Examples yesterday included the basic rate of funding per 16-19 year old in education, and the entire children’s services budget.


  1. Freeze things in cash terms. Yesterday the government announced that the repayment threshold on student loans – the level above which ex-students must start paying back their loans – will remain frozen in cash terms for 5 years, instead of increasing with earnings (which is what has happened to date). This saves the Government £200m in 2019-20. In a particularly bold move, the Government has even applied this rule to loans that have already been issued – changing the terms on which students took out the loans in the first place.


  1. Hide all these wheezes in sweeping statements. The first chapter of the Spending Review tells us that “£3 billion [of reduction in the deficit] is being delivered through reforms such as Making Tax Digital and further measures to tackle tax avoidance.” The innocuous phrase “reforms such as” covers the bringing forward of £900m in Capital Gains Tax (see number 1 above) and the £450m saved by delaying automatic enrolment into pensions (see number 2 above).

Catherine Colebrook is chief economist at the Institute for Public Policy Research