Investor Meet Company, Fevertree, Closet Trackers, Politics and the Environment

I recently came across a company called “Investor Meet Company” (see https://www.investormeetcompany.com/ ). They claim to enable individual investors to meet with company directors over the internet, i.e. via a digital web cast. The service is free to investors but there is a small charge to companies who take part.

The company was formed in 2018 by two founders, Marc Downes and Paul Brotherhood, who seem to have lengthy financial backgrounds and the web site looks professional. However, their contract terms are over complex and their privacy policy likewise so I am not rushing to sign up. They also invite you to provide details of companies you are interested in, which may be your holdings, which is not ideal. But if any readers have experience of this service, please let me know.

I mentioned Fevertree (FEVR) in my last blog post and Phil Oakley’s review of the business. Today the company issued a trading statement which was positive – it mentions “acceleration in key growth markets of the US and Europe in the second half”, but UK performance seems to be mixed. Growth in the USA is now expected to be c. 34% which is ahead of previous expectations. But the overall revenue forecast of £266 to £268 million is less than the previous consensus brokers’ forecast. The share price is up 7.8% today though. I may have to look at this business again because US growth is key to the share valuation.

The Financial Conduct Authority (FCA) have fined Janus Henderson £1.9 million for running two funds as “closet trackers”, i.e. actually closely tracking an index while charging high fees that are more normal for actively managed funds. This apparently was particularly obnoxious because they did not tell the investors in the funds that they were switched to a passive approach in 2011. The funds affected were Henderson Japan Enhanced Equity and Henderson North American Enhanced Equity. Investors have been paid compensation. Investors in funds need to be very wary that the fund managers of actively managed funds are actually putting in the effort and not sitting back and being a pseudo index tracker while charging high fees.

I watched some of the debate last night between Johnson and Corbyn but as it was so trivial in content I turned it off fairly quickly. I can imagine a lot of people did. The programme producer and compere can be mostly blamed for allowing such bland questions to which one could guess the responses and allowing evasions and irrelevant interruptions. The format of the US presidential debates is so much better.

Rather surprisingly I received a flyer in the post yesterday from an organisation called “Tactical Vote”. If I go to their web site it advises me that the best choice for me is to vote Labour in the Bromley and Chislehurst Constituency. The flyer makes it clear that their agenda is to keep the Conservatives out! But I suspect that they won’t get far in my constituency as Bob Neil had a 10,000 majority last time. If anyone was to switch it might be more likely be to the Brexit Party or the Liberal Democrats but there is not even a Brexit candidate standing so far as I can see. I am all in favour of “tactical voting” in some constituencies but we really need reform of the political system so that we have better representation. A transferable second vote system as we have for London Mayor is relatively simple. Tactical Vote seem to be pursuing a false agenda though; they should call themselves the “Labour Vote Promoters”.

One of the hot political issues, at least so far as the minority parties are concerned as the major parties are more focused on Brexit, the NHS and give-aways in the current General Election is the environment, i.e. how we become carbon neutral by 2050 or a date of your choice. Even the Conservatives wish us all to be driving electric cars, changing our home heating system and changing our way of life in other ways to avoid disastrous climate change. There was an interesting article in today’s Financial Times showing how this is quite pointless because China will soon be emitting more carbon from burning coal than the whole of the EU. They are expanding the number of coal power stations and the result will be to offset global progress in reducing emissions. In 2017 China produced 27% of world CO2 emissions, while the UK produced 1.2%. China’s emissions have been rising while the UK’s are falling so any extreme efforts by the UK are not likely to have much impact on the world scene.

However if you want to save the world and cut your heating bills (the latter is a more practical objective) I suggest looking at product called Radbot from Vestemi. The company was founded by a long-standing business contact of mine. It’s basically an intelligent radiator valve that monitors when a room is occupied and adapts to your usage.

Apart from that point, I consider there is so much misinformation being spread around about climate change and the impact of CO2 emissions that it is impossible to comment on the subject intelligently enough to refute much of the nonsense in a short blog article. But I do think it might be helpful to reduce the population of the UK which is just getting too damn crowded and leading to housing shortages, congestion on the roads and in public transport and other ills. That would be a better way of reducing emissions.

Part of the problem is that the NHS has become very good at keeping people alive despite what some politicians believe, while immigration has boosted numbers as well. You can see this in the latest forecasts for London’s population which is likely to grow by 18% to 10.4 million by 2041. See https://data.london.gov.uk/dataset/projections-documentation for more details.

Those are the issues politicians should be talking about.

Roger Lawson (Twitter: https://twitter.com/RogerWLawson )

You can “follow” this blog by clicking on the bottom right.

BT Nationalisation and Promises, Promises

We are clearly in a run up to a General Election when politicians promise all kinds of “free” gifts to the electorate. The latest promise, even before the manifestos have been published, is the Labour Party’s commitment to give everyone in the UK free broadband. This would be achieved by simply nationalising BT Group (BT.A) apparently.

I just had a quick look at the cost of this commitment. BT actually receives over £15 billion annually according to the last accounts from Consumers and from Openreach. There is some profit margin on that of less than 20% which might be discounted, but there are many households who do not yet have a fibre connection so that would be an additional cost to be covered by the Government.

In addition there would probably be some cost of nationalising BT Group and paying compensation to shareholders. The current market cap of the company is about £19 billion. They might get away with paying £10 billion up front but the annual cost of at least £12 billion to maintain the network would be an enormous burden on the state. They might be able to raise that by taxing multinationals or others but it still makes no sense.

I am not a BT shareholder currently although I am one of their customers. I also remember how dreadful the service from BT was before it was nationalised. It may not be perfect now in comparison with some of their competitors but nationalised industries such as telecoms, the railways, the motor industry, the coal industry, shipbuilding, the gas/electric/water utilities and about 40 others were all abject failures. They typically lost money and provided diabolical service.  The young who are voting socialist may not remember but Jeremy Corbyn should do so.

The fact that the share price of BT only dropped by 1% today (at the time of writing) just shows you how much credibility investors attach to this promise. It also surely shows how desperate the Labour Party is to win some more votes as they are now trailing well behind in the opinion polls.

Roger Lawson (Twitter: https://twitter.com/RogerWLawson )

You can “follow” this blog by clicking on the bottom right.

© Copyright. Disclaimer: Read the About page before relying on any information in this post.

Mello Event, ProVen and ShareSoc Seminars and Lots More News

It’s been a busy last two days for me with several events attended. The first was on Tuesday when I attended the Mello London event in Chiswick. It was clearly a popular event with attendance up on the previous year. I spoke on Business Perspective Investing and my talk was well attended with an interesting discussion on Burford Capital which I used as an example of a company that fails a lot of my check list rules and hence I have never invested in it. But clearly there are still some fans and defenders of its accounting treatment. It’s always good to get some debate at such presentations.

On Wednesday morning I attended a ProVen VCT shareholder event which turned out to be more interesting than I expected. ProVen manages two VCTs (PVN and PGOO), both of which I hold. It was reported that a lot of investment is going into Adtech, Edtech, Fintech, Cybersecurity and Sustainability driven by large private equity funding. Public markets are declining in terms of the number of listed companies. The ProVen VCTs have achieved returns over 5 years similar to other generalist VCTs but returns have been falling of late. This was attributed to the high investment costs (i.e. deal valuations have been rising for early stage companies) in comparison with a few years back. Basically it was suggested that there is too much VC funding available. Some companies seem to be raising funds just to get them to the next funding round rather than to reach profitability. ProVen prefers to invest in companies focused on the latter. Even from my limited experience in looking at some business angel investment propositions recently, the valuations being suggested for very early stage businesses seem way too high.

This does not bode well for future returns in VCTs of course. In addition the problem is compounded by the new VCT rules which are much tougher such as the fact that they need to be 80% invested and only companies that are less than 7 years old qualify – although there are some exceptions for follow-on investment. Asset backed investments and MBOs are no longer permitted. The changes will mean that VCTs are investing in more risky, small and early stage businesses – often technology focused ones. I suspect this will lean to larger portfolios of many smaller holdings, with more follow-on funding of the successful ones. I am getting wary of putting more money into VCTs until we see how all this works out despite the generous tax reliefs but ProVen might be more experienced than others in the new scenario.

There were very interesting presentations from three of their investee companies – Fnatic (esports business), Picasso Labs (video/image campaign analysis) and Festicket (festival ticketing and business support). All very interesting businesses with CEOs who presented well, but as usual rather short of financial information.

There was also a session on the VCT tax rules for investors which are always worth getting a refresher on as they are so complex. One point that was mentioned which may catch some unawares is that normally when you die all capital gains or losses on VCTs are ignored as they are capital gains tax exempt, and any past income tax reliefs are retained (i.e. the five-year rule for retention does not apply). If you pass the VCT holdings onto your spouse they can continue to receive the dividends tax free but only up to £200,000 worth of VCT holdings transferred as they are considered to be new investments in the tax year of receipt. I hope that I have explained that correctly, but VCTs are certainly an area where expert tax advice is quite essential if you have substantial holdings in them.

One of the speakers at this event criticised Woodford for the naming of the Woodford Equity Income Fund in the same way I have done. It was a very unusual profile of holdings for an equity income fund. Stockopedia have recently published a good analysis of the past holdings in the fund. The latest news from the fund liquidator is that investors in the fund are likely to lose 32% of the remaining value, and it could be as high as 42% in the worst scenario. Investors should call for an inquiry into how this debacle was allowed to happen with recommendations to ensure it does not happen again to unsuspecting and unsophisticated investors.

Later on Wednesday I attended a ShareSoc company presentation seminar with four companies presenting which I will cover very briefly:

Caledonia Mining (CMCL) – profitable gold mining operations in Zimbabwe with expansion plans. Gold mining is always a risky business in my experience and political risks particularly re foreign exchange controls in Zimbabwe make an investment only for the brave in my view. Incidentally big mining company BHP (BHP) announced on Tuesday the appointment of a new CEO, Mike Henry. His pay package is disclosed in detail – it’s a base salary of US$1.7 million, a cash and deferred share bonus (CDP) of up to 120% of base and an LTIP of up to 200% of base, i.e. an overall maximum which I calculate to be over $7 million plus pension. It’s this kind of package that horrifies the low paid and causes many to vote for socialist political parties. I find it quite unjustifiable also, but as I now hold shares in BHP I will be able to give the company my views directly on such over-generous bonus schemes.

Ilika (IKA) – a company now focused on developing solid state batteries. Such batteries have better characteristics than the commonly used Lithium-Ion batteries in many products. Ilika are now developing larger capacity batteries but it may be 2025 before they are price competitive. I have seen this company present before. Interesting technology but whether and when they can get to volumes sufficient to generate profits is anybody’s guess.

Fusion Antibodies (FAB) – a developer of antibodies for large pharma companies and diagnostic applications. This is a rapidly growing sector of the biotechnology industry and for medical applications supplying many new diagnostic and treatment options. I already hold Abcam (ABC) and Bioventix (BVXP) and even got treated recently with a monoclonal antibody (Prolia from Amgen) for osteopenia. One injection that lasts for six months which apparently adjusts a critical protein – or in longer terms “an antibody directed against the receptor activator of the nuclear factor–kappa B ligand (RANKL), which is a key mediator of the resorptive phase of bone remodeling. It decreases bone resorption by inhibiting osteoclast activity”. I am sure readers will understand that! Yes a lot of the science in this area does go over my head.

As regards Fusion Antibodies I did not like their historic focus on project related income and I am not clear what their “USP” is.

As I said in my talk on Tuesday, Abcam has been one of my more successful investments returning a compound total return per annum of 31% Per Annum since 2006. It’s those high consistent returns over many years that generates the high total returns and makes them the ten-baggers, and more. But you did not need to understand the science of antibodies to see why it would be a good investment. But I would need a lot longer than the 30 minutes allowed for my presentation on Tuesday to explain the reasons for my original investment in Abcam and other successful companies. I think I could talk for a whole day on Business Perspective Investing.

Abcam actually held their AGM yesterday so I missed it. But an RNS announcement suggests that although all resolutions were passed, there were significant votes against the re-election of Chairman Peter Allen. Exactly how many I have been unable to find out as their investor relations phone number is not being answered so I have sent them an email. The company suggests the vote was because of concerns about Allen’s other board time commitments but they don’t plan to do anything about it. I also voted against him though for not knowing his responsibility to answer questions from shareholders (see previous blog reports).

The last company presenting at the ShareSoc event was Supermarket Income REIT (SUPR). This is a property investment trust that invests in long leases (average 18 years) and generates a dividend yield of 5% with some capital growth. Typically the leases have RPI linked rent reviews which is fine so long as the Government does not redefine what RPI means. They convinced me that the supermarket sector is not quite such bad news as most retail property businesses as there is still some growth in the sector. Although internet ordering and home delivery is becoming more popular, they are mainly being serviced from existing local sites and nobody is making money from such deliveries (£15 cost). The Ocado business model of using a few large automated sites was suggested to be not viable except in big cities. SUPR may merit a bit more research (I don’t currently hold it).

Other news in the last couple of days of interest was:

It was announced that a Chinese firm was buying British Steel which the Government has been propping up since it went into administration. There is a good editorial in the Financial Times today headlined under “the UK needs to decide if British Steel is strategic”. This news may enable the Government to save the embarrassment of killing off the business with the loss of 4,000 direct jobs and many others indirectly. But we have yet to see what “sweeteners” have been offered to the buyer and there may be “state-aid” issues to be faced. This business has been consistently unprofitable and this comment from the BBC was amusing: “Some industry watchers are suggesting that Scunthorpe, and British Steel’s plant in Hayange in France would allow Jingye to import raw steel from China, finish it into higher value products and stick a “Made in UK” or “Made in France” badge on it”. Is this business really strategic? It is suggested that the ability to make railway track for Network Rail is important but is that not a low-tech rather than high-tech product? I am never happy to see strategically challenged business bailed out when other countries are both better placed to provide the products cheaper and are willing to subsidise the companies doing so.

Another example of the too prevalent problem of defective accounts was reported in the FT today – this time in Halfords (HFD) which I will add to an ever longer list of accounts one cannot trust. The FT reported that the company “has adjusted its accounts to remove £11.7 million of inventory costs from its balance sheet” after a review of its half-year figures by new auditor BDO. KPMG were the previous auditor and it is suggested there has been a “misapplication” of accounting rules where operational costs such as warehousing were treated as inventory. In essence another quite basic mistake not picked up by auditors!

That pro-Brexit supporter Tim Martin, CEO of JD Wetherspoon (JDW) has been pontificating on the iniquities of the UK Corporate Governance Code (or “guaranteed eventual destruction” as he renames it) in the company’s latest Trading Statement as the AGM is coming up soon. For example he says “There can be little doubt that the current system has directly led to the failure or chronic underperformance of many businesses, including banks, supermarkets, and pubs” and “It has also led to the creation of long and almost unreadable annual reports, full of jargon, clichés and platitudes – which confuse more than they enlighten”. I agree with him on the latter point but not about the limit on the length of service of non-executive directors which he opposes. I have seen too many non-execs who have “gone native”, fail to challenge the executives and should have been pensioned off earlier (not that non-execs get paid pensions normally of course. But Tim’s diatribe is well worth reading as he does make some good points – see here: https://tinyurl.com/yz3mso9d .

He has also come under attack for allowing pro-Brexit material to be printed on beer mats in his pubs when the shareholders have not authorised political donations. But that seems to me a very minor issue when so many FTSE CEOs were publicly criticising Brexit, i.e. interfering in politics and using groundless scare stories such as supermarkets running out of fresh produce. I do not hold JDW but it should make for an interesting AGM. A report from anyone who attends it would be welcomed.

Another company I mentioned in my talk on Tuesday was Accesso (ACSO). The business was put up for sale, but offers seemed to be insufficient to get board and shareholder support. The latest news issued by the company says there are “refreshed indications of interest” so discussions are continuing. I still hold a few shares but I think I’ll just wait and see what the outcome is. Trading on news is a good idea in general but trading on the vagaries of guesses, rumours or speculative share price movements, and as to what might happen, is not wise in my view.

Roger Lawson (Twitter: https://twitter.com/RogerWLawson )

You can “follow” this blog by clicking on the bottom right.

© Copyright. Disclaimer: Read the About page before relying on any information in this post.

 

Pound Jumps Up on Brexit Party News and Portfolio Impact

The pound has risen by about 1% against the US Dollar and Euro today with suggestions that it is the news from Nigel Farage’s Brexit Party that prompted it. He won’t be putting up candidates in seats where the Conservatives won the vote last time when he was previously threatening to have candidates stand in all constituencies. This makes some sense because even if they have good candidates willing to stand, building a local campaigning organisation from scratch to get the vote out is not easy. It strengthens the probability of a Conservative win although there is still some risk because in marginal seats which the Conservatives hoped to win but lost last time there could still be a split vote.

The result has been quite significant on my portfolio with companies with large overseas revenues and profits falling while UK dominated businesses rose. That was particularly so with Greggs (GRG) who are up 16% on the day after a trading statement that indicated overall sales were up 12.4% for the last 6 weeks and year end figures should be even better than expected.  Sales growth continues to be driven by increased customer visits apparently but as many of their outlets are now not on the High Street I suggest that should not be seen as a revival for other retail businesses. But Greggs certainly seem to have a winning formula of late as they consistently report positive news.

I tend not to react to short term changes in exchange rates because the impact can be more complex that first appears. I will not therefore be taking any steps as a result. In any case my overall portfolio is up 0.5% on the day so this might just reflect more confidence that the political log-jam will finally be resolved in a few weeks’ time. Investor confidence has a big influence on markets of course.

Roger Lawson (Twitter: https://twitter.com/RogerWLawson )

You can “follow” this blog by clicking on the bottom right.

© Copyright. Disclaimer: Read the About page before relying on any information in this post.

RNS Announcement Emails, Mello Presentation and NHS Politics

Many private investors like me have been using a service from Investegate to deliver new RNS announcements via email. But recently, and not for the first time, delivery of such announcements has been delayed, or they have not been delivered at all. This can be positively dangerous – for example I only realised that I had missed seeing one after the share price of a company I held rose sharply. Missing bad news can be even more traumatic.

After complaining to Investegate and getting no response I decided to change to another service. The London Stock Exchange offer a similar free service (see https://www.londonstockexchange.com under Email Alerts). It appears to work reliably so I recommend it.

Many readers will be aware of the Mello events that attract many private investors to company presentations and for networking. Mello London is a 2-day event in Chiswick on the 12th and 13th of November (see: https://melloevents.com/event/ ). I will be giving a talk on Business Perspective Investing based on my recently published book on the Tuesday at 12.55pm. So please come along and learn more about why financial analysis is not the most important aspect of selecting companies in which to invest.

I note that the NHS is likely to be a political football in the coming General Election. As a heavy user of the NHS for the last 30 years during which it has kept me alive, I consider this is a grave mistake. The NHS is not a perfect service and could do with some more money as the UK spends relatively less on healthcare in comparison with other countries. But the service has improved enormously over the last 30 years regardless of the political party or parties that were in power. One of the most damaging aspects has been constant change and reorganisation driven by political dictates and concerns to improve efficiency. It’s also been slow to adopt new technology such as IT software because it is so monolithic and bureaucratic a body. When it did commit to a major IT project for patient records and associated systems it wasted £10 billion or more on an ultimately abandoned project. More diversity and local decision making are needed in the NHS. But I see no chance of it being threatened by any trade deal with the USA or by our exit from the EU.

Roger Lawson (Twitter: https://twitter.com/RogerWLawson )

You can “follow” this blog by clicking on the bottom right.

© Copyright. Disclaimer: Read the About page before relying on any information in this post.

General Election and the Stock Market Impact

We finally have a possible resolution of the impasse in Parliament as a General Election is to be held on December 12th. That’s after the Speaker (not Bercow needless to say) rejected two wrecking amendments to a simple Bill authorising the election. My spirits were elated by this news because it finally means that the uncertainty over Brexit (will we or won’t we depart) may soon be resolved. That uncertainty has been damaging to UK business as their plans were put on hold, and has caused a fall in the pound as the world saw that we were in a political crisis and there was a risk of a hard Brexit. It also meant little other business was getting done in Parliament as the Government had no overall majority.

Now we have the situation that with a large Conservative lead in the opinion polls it seems likely that Boris Johnson will be returned with a Commons majority and will be able to push through his Brexit Withdrawal Bill. That Bill does seem reasonable to me in many regards, as a Brexit supporter. It avoids a “hard”, no-deal Brexit which was certainly going to have some impact on business, although not as much as some people claimed. It also seems likely that the marxist ambitions of Jeremy Corbyn and the Labour Party will be a dead letter for at least a few years.  I expected that the stock market would be lifted by this news but it has not happened. Why?

Perhaps some risks are still perceived. One is that the Brexit Party will split the right-wing vote in individual constituencies thus allowing other parties to win them. Or there could be mix of parties in the resulting Parliament with no overall majority which would put us back at square one. The key is the stance of the Brexit Party where Nigel Farage is opposed to the Withdrawal Agreement as he basically thinks it concedes too much to the EU (over fisheries, future trade, future regulatory alignment, etc). But if he wants to be certain of obtaining Brexit he has to think again and form a pact with the Conservatives. The Brexit Party has already been targeting Labour seats and that is surely a good focus for them leaving the Conservatives to target marginals and traditional Tory seats. As a relatively new Party, the Brexit Party probably does not have the resources to fight all the constituencies effectively in any case. Better to focus on a few. That way the Brexit Party could achieve some seats in Parliament for the first time and have a longer-term future with some say in Government and the future negotiations with the EU. The latter still leaves a lot to be settled under the “Political Declaration” so there is much to be decided.  Otherwise the Brexit Party surely has no future other than as sheep in the wilderness.

But all this complexity is probably lost on most investors, particularly overseas ones who dominate the UK stock market. They probably will not be convinced that the UK has returned to some sanity until a clear election result appears.

But as always I am optimistic. I am betting it will be resolved in a satisfactory way as most voters are fed up with the political gyrations and many of the worse MPs have been destroying their own reputations by repeated “about-faces”. Boris Johnson has to clean out the Augean Stables that are the Houses of Parliament.  To quote: “For the fifth labour, Eurystheus ordered Hercules to clean up King Augeas’ stables. Hercules knew this job would mean getting dirty and smelly, but sometimes even a hero has to do these things”. That’s politics in essence.

For those opposed to Brexit and still clutching at straws, the National Institute of Social Research (NIESR) has reported that they expect UK GDP to be 3.5% lower in ten years’ time under the proposed deal. But the Treasury and the Governor of the Bank of England do not agree. It depends on the terms of any free trade agreement that is negotiated with the EU. I am sceptical that there is likely to be any negative impact. Economic forecasts of just one or two years ahead are notoriously unreliable. Ten-year forecasts are simply incredible. The latter cannot take account of unexpected events and economic trends, and tend to ignore the adaptability of businesses. I suspect a more positive outlook for the country might stimulate more confidence in business and investment therein and offset any minor other impacts. In essence a Government with a good majority and a unity of purpose is the key. Perhaps readers should consider tactical voting to ensure that happens.

Roger Lawson (Twitter: https://twitter.com/RogerWLawson )

You can “follow” this blog by clicking on the bottom right.

© Copyright. Disclaimer: Read the About page before relying on any information in this post.

 

Population Trends and Productivity

One of the key factors that affects the wealth of the population of the UK is labour productivity. It also has a big influence on the value of UK companies in which many of my readers have a strong interest.  Only by improving productivity can we become richer in essence. But even the Government recognises that this country has a big problem at present because productivity is not improving, unlike in some of our competitors.

Some relevant information on this issue recently came to light in the pages of the FT. First the Office of National Statistics (ONS) reported that population growth is slowing due to worsening life expectancy. But it’s still expected to grow by 3 million to 69.4 million by mid-2028. It also concludes that it is migration that is driving UK population growth and as the post-war baby boomers die that impact will strengthen.

Of the UK countries, England is expected to grow population more rapidly, rising by 10.3% to 2043, and I can guess where most of that will settle – London and the South-East no doubt based on recent past trends.

Now you may have concerns about that in terms of the “liveability” of the area. It will worsen the pressure on the public transport network and congestion on the road network. It will also increase air pollution substantially as air pollution directly relates to the business and travel activity of the population and the number of homes. But a letter from Professor Nicholas Oulton in the same FT pointed out that the growth of hours worked in the UK, largely fueled by migration, has reduced our productivity growth to near zero. He says the flip side of the UK’s job miracle is the productivity disaster [unemployment is at record lows].

This is not just a debate for economists though, because Brexit will enable the UK to restrict immigration from Europe which is currently unrestrained and has led to 18% of the workforce now being foreign born. That ready supply of both skilled and unskilled labour provides a disincentive for UK companies to invest in more machinery or IT systems and explains both the poor productivity growth and lack of capital investment. We have just been creating a lot of low-paid jobs.

The recent uncertainty over Brexit has also created difficulties for many businesses who are generally horrified by yet more delays in Parliament over concluding the matter. This is becoming an even more important issue than whether it is a hard or soft Brexit. So what should the Prime Minister do now that his Bill debate timetable was voted down thus making it very difficult to achieve his desired exit on October the 31st? I suggest he needs to either agree a very short delay with the EU together with some agreement from the Labour Party and others that wrecking amendments will not proliferate – I do not consider it totally unreasonable that more time was required to debate the Brexit Biill. Or he needs to get a General Election agreed. It seems that may just be possible.

But it is important to get Brexit completed if the UK is to tackle the problem of low productivity and hence low wages driven by excessive immigration.

It is the low and poor growth in wages for most of the population that is also driving the social unrest in the country which is an issue that cannot be ignored.

Roger Lawson (Twitter: https://twitter.com/RogerWLawson )

You can “follow” this blog by clicking on the bottom right.

© Copyright. Disclaimer: Read the About page before relying on any information in this post.