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Brexit Requires Parliamentary Approval, UK Court Rules

BrexitAlicia Nicholls

In its judgement rendered this morning, the UK High Court has held that Parliament must vote before the UK can begin the process of leaving the European Union by giving notice pursuant to Article 50 of the Lisbon Treaty.

In summary, the court did not accept the argument by the Government that its prerogative powers included the ability to make such a notification without parliamentary approval. The question of whether the Article 50 notification should be made, therefore, must be submitted to Parliament for a vote.

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122 Comments on “Brexit Requires Parliamentary Approval, UK Court Rules”

  1. Bernard Codrington. November 5, 2016 at 12:58 PM #

    Are the temporary advances of the Central Bank to the GOB included as well?

    Like

  2. chad99999 November 5, 2016 at 1:05 PM #

    David

    Shame on you for shifting the goalposts — the oldest of debating tricks.

    The issue I addressed was the size of the country’s debt. Stick to that and concede the argument when you are wrong.

    Obviously, the government is in financial difficulties. I have suggested elsewhere they should sell some of their assets and pay down their debt.

    But don’t keep changing the subject. This is not about NIS

    Like

  3. Bush Tea November 5, 2016 at 1:11 PM #

    LOL @ David

    Skippa, before getting into an argument with “Economists”, can you do us all a favour and find out what the hell is an ‘economist’?

    Is it a science? ….an art? ….. a religion? ….or an illusion?
    When you work out the answer, you will also deduce the futility of arguing with them about things like ‘national debt’ and its consequences.

    Like

  4. David November 5, 2016 at 1:12 PM #

    @Chad9999

    Borrowing from the NIS does not count as government debt?

    @Bernard

    See the last Economic Review Jan to Sept 16. Why would the Central Bank exclude this debt?

    Government’s financing needs for the period April to September were met by using $326 million from domestic sources. The National Insurance increased their investment in securities by $91 million and insurance companies and other non-bank investors provided $4 million worth of financing. In addition, there was an $84 million switch from foreign to domestic financing because of amortization of foreign loans. The resulting money creation by the Central Bank financing Government was $114 million. The pressure of Government’s ongoing cash flow needs is reflected in the failure to narrow the gap between the Barbados and US 3-month Treasury bill rates, which remains at 2.81 percentage points (Figure 5). The gross public sector debt at the end of September stood at 108 percent of GDP, while the net public sector debt ratio was 57 percent.

    Like

  5. Vincent Haynes November 5, 2016 at 1:13 PM #

    http://upliftconnect.com/economics-form-brain-damage/

    Like

  6. Bernard Codrington. November 5, 2016 at 1:15 PM #

    @ Chad and @ David

    Is it necessary for BU bloggers to be winners and losers? Or even those who are right and those who are wrong? I thought the purpose was to share information and exchange ideas. Obviously I am in the wrong place.

    Like

  7. millertheanunnaki November 5, 2016 at 1:17 PM #

    @ chad99999 November 5, 2016 at 1:05 PM

    How about maintaining the goalposts but changing the goalkeeper?

    I am certain you, the astute businessperson you are, would never retain a financial controller who keeps screwing up the books.

    Isn’t that the major reason why Barbados has been suffering those many downgrades for the past 6 years?
    The international financial monitoring agencies have little (if any) confidence in the current managers, whether the bulk of the debt is local or foreign.

    Like

  8. David November 5, 2016 at 1:17 PM #

    @chad9999

    Selling public assets read privatization is not the standalone solution you know. Where are we on the global competitive index?

    http://reports.weforum.org/global-competitiveness-report-2014-2015/rankings/

    Also how are we doing with business facilitation?

    Like

  9. David November 5, 2016 at 1:19 PM #

    @Bernard

    it is not possible to be right or wrong with economics.

    Like

  10. millertheanunnaki November 5, 2016 at 1:34 PM #

    @ Bernard Codrington. November 5, 2016 at 1:15 PM #
    “I thought the purpose was to share information and exchange ideas. Obviously I am in the wrong place.”

    Quite!
    So tell us what kind of effect do you think Breixt will have on the tourism industry in Bim seeing that the UK represents its largest market share?

    With a possible drop of almost 20% in the value of the pound sterling vis-à-vis the US$ to which the Bajan dollar is tied don’t you think this must translate into fewer visitors and reduced spending in the local economy by visitors from that ‘Sterling’ market, especially those on fixed income budgets (pensioners)?
    Less forex spend in the local economy means reduced foreign reserves which means more pressure on the Bajan dollar to adjust accordingly.

    Like

  11. chad99999 November 5, 2016 at 1:36 PM #

    Some random observations:
    The two most heavily indebted countries in the world, measured by the total dollar value of external debt, are the United States and the UK.

    There is good things about debt and bad things about debt. One of the bad things about external debt is that it has to be.repaid in foreign currency, often US dollars, which may not be easy to acquire

    Two of the good things about government domestic debt is that (a) the government can raise funds to repay the debt by selling some if its assets or by raising taxes. and (b) when the debt is being repaid the money is received by Barbadians, which means the government’s loss is the citizens’ gain. Everything is everything.

    Get it, David?

    Like

  12. David November 5, 2016 at 1:49 PM #

    @chad99999

    Two of the good things about government domestic debt is that (a) the government can raise funds to repay the debt by selling some if its assets or by raising taxes. and (b) when the debt is being repaid the money is received by Barbadians, which means the government’s loss is the citizens’ gain. Everything is everything. Get it, David?

    Some random answerback:

    What is the value of remaining government we can sell to significantly reduce domestic debt? What is the level of indirect and direct tax to support further increase? Get it Chad?

    Like

  13. Bernard Codrington. November 5, 2016 at 1:49 PM #

    @ Bush Tea @ 1: 11PM

    The short answer to your question is all four.

    Like

  14. chad99999 November 5, 2016 at 1:51 PM #

    In a master stroke of pure genius, the government’s tourist industry planners have been pivoting to the North American market to offset an expected downturn in UK tourist spending as a result of the Brexit-induced devaluation of the pound.

    By courting Sandals, which has embarked on a US $150M expansion, and by pushing the Hyatt project they have moved aggressively in the US and Canadian markets.

    Like

  15. David November 5, 2016 at 1:55 PM #

    @chad99999

    How much of the money, in forex form, paid to Sandal’s makes it way to the Barbados Treasury?

    Like

  16. chad99999 November 5, 2016 at 2:11 PM #

    David

    You don’t have the answer to that question and neither do I.

    Perhaps a Central Bank insider can tell us.

    What I do know is that Sandals has to provide Barbados with the foreign exchange needed to cover all the foreign purchases Sandals has to make to provision all of the foreign tourists it brings to Barbados, so Barbados cannot lose.

    Plus there are all those jobs and new hotel rooms created on the island.

    Winners! Go Trump.

    Like

  17. David November 5, 2016 at 2:15 PM #

    @cha99999

    You have not answered the question. What % of the reservation monies reaches Barbados.

    You do not know the answer to that question either.

    Like

  18. Bernard Codrington. November 5, 2016 at 2:15 PM #

    @ Miller @ 1 : 34 P M.

    It depends on what motivates the U.K. visitor to travel to Barbados. If he is a rich visitor who likes to visit Barbados he will continue to come. If his visit depends on the cost of air fare and hotel prices he may not come as often. There are high income pensioners and low income pensioners if travel for them is price elastic there will be a reduction in visits and spending. I will not do this exercise until there is a Brexit and until there is a change “in the goal keepers’. But a fall in the value of the pound of 20% will not translate into a 20% reduction in the sterling revenues from the U.K. tourists.

    That is a forecast based on my economic model of Barbados tourism Expenditure. The Model is not on this computer so do not try to hack it. HA Ha Ha.

    Like

  19. Bernard Codrington. November 5, 2016 at 2:38 PM #

    Another point ,that is often lost in partial analysis, is the fact that a high percentage of the input to the Tourism Industry involves the use of foreign exchange so a corresponding fall in foreign exchange use takes place .
    The devaluation of the BDS dollar is a political decision not an economic one. Devaluation is a tool to expand the foreign purchase of local goods and services provided that demand is price elastic . If it is not there will be no benefit to the local economy.
    Secondly if a high percentage of the inputs to your export sector is imported there is marginal change in the price of your exports and little change in earning of foreign currencies. The price of your inputs automatically rises.
    So for Barbados it is a tool which could reduce our Barbados dollar below that of Guyana.

    Like

  20. millertheanunnaki November 5, 2016 at 2:46 PM #

    @ Bernard Codrington. November 5, 2016 at 2:15 PM
    “If he is a rich visitor who likes to visit Barbados he will continue to come. If his visit depends on the cost of air fare and hotel prices he may not come as often. There are high income pensioners and low income pensioners if travel for them is price elastic there will be a reduction in visits and spending. “

    Clearly that is academically obvious. The vast majority of those who make up the ‘justified’ load factor on Virgin Atlantic, BA, Thomas Cook or Thomson tours to fill the hotel rooms on the South and West Cost cannot by the farthest stretch of the imagination be considered rich.

    These ‘ordinary’ UK tourists on ‘budgeted’ incomes and sitting in economy are the bulk of the visitors who patronize the restaurants, visit Harrison Cave and other sites and buy food and drinks at the Oistins Bay Garden.

    What we want you to focus on is what the obvious reduction in forex receipts from the UK (including the multiplier economic impact on the fixed pension income of the dismissively referred to returning nationals from Limey land) will have on the foreign reserves and on the ability of the local dollar to keep its head above water.

    The Guv of the Central Bank is rather concerned about it, shouldn’t you too?

    Like

  21. Bernard Codrington. November 5, 2016 at 2:54 PM #

    @ David

    Do you expect every blogger is like you and Bush Tea, and has an answer to every conceivable question? We humble bloggers can only give answers from our own perspectives. And some like me must understand the question , must collect our facts and sometimes have to run it through a mathematical model which very often has no connection to reality so give Chad and me a break .
    Furthermore if you are an “agent Provocateur’ posing as a blog master, we gine fix you.

    Like

  22. Bernard Codrington. November 5, 2016 at 3:08 PM #

    @ Miller at 2 : 46 PM
    The reduction of the spending of U .K. tourist is obvious to you but not to me.
    Any policy recommendations of mine are based on facts. I will not and cannot speak to the concerns of any other economist. I will advise on that if and when I have to . At the moment there is no problem.

    Like

  23. Vincent Haynes November 5, 2016 at 3:51 PM #

    Devaluing the Bim dollar will serve no purpose as other than Liquor, Ambevs beers and various rums we have little else to export.

    I returned from the UK a month ago and was surprised at the hike in prices over a 6 month period,that coupled with the drop in the pound by 20%,a shabby looking island and few if any new attractions,does not bode well for any forecast of an influx of UK visitors.

    Like

  24. Bush Tea November 5, 2016 at 4:06 PM #

    Vincent you are sounding like the Guvnor of the central dank yuh!!

    You think that the value of our dollar is a function of what is ‘good’ for Barbados?
    Skippa, the value of the dollar is a function of the VALUE of our contributions to international commerce…. period.

    No damn productivity – no value.
    No damn Bajan ownership of productive capacity – no value
    No production output of interest to the buying world – no value.

    …and right now, we have ‘economists’ like Chad advising that we ditch our last productive enterprises in exchange for some quick cash ….and this after frustrating the productive sector by transferring ownership to ‘kicking Canadians’, Bajan-hating Jamaicans who only want Bajan security guards, ….and Trinis who are just looking for opportunities to promote Trini goods….

    Imaging GP calling Bushie the ‘Devil’ when so many ‘economists’ bout the place preaching Satan’s message nuh….🙂

    Like

  25. Vincent Haynes November 5, 2016 at 4:16 PM #

    Bush Tea November 5, 2016 at 4:06 PM #

    I have never said anything about good or bad anything……..I simply state the facts.

    I also agree with your analysis……we are not poles apart on this.

    Like

  26. Hal Austin November 5, 2016 at 4:56 PM #

    Economics is not a ‘science’ although the mathematicians who hijacked it will like to think so.
    Borrowing from the NIS is a public debt. NIS contributions are there principally to finance state pensions and the health services.

    Like

  27. Enuff November 5, 2016 at 5:01 PM #

    Chad999 is another “cut&paste” specialist! Clearly the arguments being advanced by him are void of any context–the Barbadian context to be exact. For example, raise what taxes and sell what assets to pay off domestic debt?

    Like

  28. chad99999 November 5, 2016 at 5:46 PM #

    Bush Tea and Enuff

    You are both a disgrace.

    I simply pointed out that David was feeding you misleading information and overstating the debt problem in Barbados.

    Stick to the facts, which are unassailable. The government does not need to be in the airport business or the seaport business. It does not even need to be in the airline business.

    It is financially overextended and needs to do something. What do you suggest?

    Like

  29. Bernard Codrington. November 5, 2016 at 6:51 PM #

    Chad99999 @ 5:46 PM

    The information which David gave with Tables were official statistics. They in themselves were not misleading. David ,using these statistics , came to a conclusion that the debt /GDP ratio was too high . That is his opinion. Opinion is neither right nor wrong. They are just that an opinion.
    Your opinion is that the ratio overstates the debt problem. Yet you state in your last sentence that the GOB is financially over extended. To remedy this financial overextendedness you recommend a fire sale of the airport ,the seaport and Barbados’ ‘shares in LIAT.
    I agree with your conclusion that there is no threat to the exchange rate if the GOB is meeting its payments when due on foreign debts. And GOB up to now is doing that.
    I agree with you that The USA,UK and other EU countries have had Debt / GDP ratios higher than Barbados and were not downgraded by these rating agencies.
    The CBB is a lender of last resort to the GOB and it has provided temporary loans to the tune of 114 million.. The balance sheet of the CBB is larger but balanced. I am not particularly fond of that approach of dealing with a recurrent deficit of GOB finances but it is temporary until the economy turns around.

    Like

  30. chad99999 November 5, 2016 at 7:25 PM #

    Bernard

    The statement from David that was misleading was the statement that Barbados is “the fourth most indebted country in the world.”

    Like

  31. Bernard Codrington. November 5, 2016 at 7:32 PM #

    Economics when approached scientifically attempts answer these questions:
    How does a country go about producing/acquiring the goods and services required by its citizens?
    How does it distribute or allocate these goods and services among its citizens?
    How is the production and distribution processes structured /organized?
    How can the size of the national income be increased?
    Like all sciences in order to keep account and compare states , we need to measure and to take into consideration changes and the rate of changes. So we need to use mathematics. But mathematics does not make it a science. Mathematics is its handmaiden a tool or better still a language. We need this to establish relationships between economic variables. Example what level of VAT do we need to close the financial gap between Expenditure and revenue?
    What level of road tax do we need to cover the cost of road repairs , traffic police and the licensing authority? You cannot do these things by guess nor ST.

    Like

  32. Bernard Codrington. November 5, 2016 at 7:42 PM #

    @ Chad 9999 at 7: 25 PM,
    Thanks for reminding me. He probably did not have a reliable source of information. If he had it I am sure he would not have tried to mislead BU bloggers. I am sure he would have seen developed countries with debt to GDP of 200% and higher. We are all entitled to make mistakes.

    Like

  33. David November 5, 2016 at 7:58 PM #

    Here is what Roger Cave the Managing Director of the Fortress Fund was quoted in the Press this week. Give him a call Chad and Bernard to determine what yardstick he used. BU is happen to state that Barbados is heavily indebted and to borrow Dr. Mascoll’s words this affords little fiscal space to support development.

    “We are now the fourth highest most indebted country in the world behind Japan, Lebanon, and Greece,” he told a gathering of investors and other players in the island’s financial sector at Fortress’ annual forum at the Frank Collymore Hall last night.

    https://www.barbadostoday.bb/2016/11/04/investors-uneasy-about-barbados-growing-debt/

    Like

  34. Bush Tea November 5, 2016 at 9:39 PM #

    @ chad99999 November 5, 2016 at 5:46 PM #
    Bush Tea and Enuff
    You are both a disgrace.
    ++++++++++++++++++++
    Cuhdear Chad, you welcome to cuss Bushie…. but don’t lump ‘e wid Enuff PLEASE….

    Cuss we apart nuh…!!!
    ..as in ‘Wunna are two disgraces…..’
    Enuff is a CSME disgrace..
    ..while Bushie is a BBE disgrace….🙂

    Like

  35. David November 5, 2016 at 10:18 PM #

    Paris Climate Change Agreement Enters into Force: What next?

    by caribbeantradelaw

    Alicia Nicholls “Humanity will look back on November 4, 2016, as the day that countries of the world shut the door on inevitable climate disaster and set off with determination towards a sustainable future.” – Joint Statement by Patricia Espinosa, UNFCCC Executive Secretary and Salaheddine Mezouar, President of COP22 and Minister of Foreign Affairs and […]

    Read more of this post

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  36. ac November 5, 2016 at 10:39 PM #

    2010 data debt as percent GDP

    Japan. 225.9
    Lebabon. 139.0
    Greece. 130.2

    Barbados. 111.6

    But US news report states carribbean nations with high debt ratio are not among the world,s economic powerhouses and it is like comparing apples to oranges.
    Mr. Cave or whatever his economic background sourced data from a 2010 US news article
    Most notably the writer of the article from whence the data was sourced is not an accredited economist has a bachelors degree in English and a Masters degree in Global communication

    Like

  37. Well Well & Consequences November 6, 2016 at 7:42 AM #

    http://ow.ly/bXsZ305TLVY

    Compiled last year, published this year, don’t know if it has been updated yet.

    The 20 most indebted countries.

    Like

  38. Vincent Haynes November 6, 2016 at 1:17 PM #

    India tells Theresa May to take more migrants and drop the UK’s ban on mangos too if she wants a trade deal

    Read more: http://www.dailymail.co.uk/news/article-3909184/India-tells-Theresa-migrants-drop-UK-s-ban-mangos-wants-trade-deal.html#ixzz4PFYnyafW
    Follow us: @MailOnline on Twitter | DailyMail on Facebook
    ……………………………………………………………………………………………
    This is what she will face at the EU table as well…….migrants!!

    Like

  39. David November 6, 2016 at 1:19 PM #

    The Brexit judges who rules holding some heat.

    https://www.theguardian.com/politics/2016/nov/04/enemies-of-the-people-british-newspapers-react-judges-brexit-ruling

    Like

  40. Vincent Haynes November 6, 2016 at 1:42 PM #

    Nigel Farage warns there could be RIOTS as he clashes with Brexit wrecker nemesis Gina Miller over her legal bid to block EU exit

    Read more: http://www.dailymail.co.uk/news/article-3910012/You-biggest-fan-Gina-Miller-clashes-Nigel-Farage-live-TV-Brexit-legal-challenge-Ukip-leader-warns-defying-people-trigger-RIOTS.html#ixzz4PFf8Phnh
    Follow us: @MailOnline on Twitter | DailyMail on Facebook

    Like

  41. David November 6, 2016 at 1:45 PM #

    We now those bloody English have a streak in them if we recall the poll tax demonstrations.

    Like

  42. Vincent Haynes November 6, 2016 at 2:00 PM #

    Farage is a loose cannon whose last shot was Brexit…….the majority of the voters have not agreed on Brexit,which is why I believe that the sensible thing to do is to call an election especially as Labour is still squabling with Watson backing May and Corbyn telling members to vote against it if May does not accede to his demands on it.

    She will have to be carefull of her wording once she calls the election and not use the term Brexit but seek the ability to manouver the best way she sees fit……a tough one.

    Like

  43. millertheanunnaki November 6, 2016 at 2:26 PM #

    @ Vincent Haynes November 6, 2016 at 2:00 PM
    “Farage is a loose cannon whose last shot was Brexit…”

    Not only a loose cannon but also a big-time hypocrite. Is he still drawing his salary as a member of the EU Parliament? Cameron resigned as PM over Brexit. Why can’t he, Farage, stop the loitering in Brussels? Or is he just there for the beer, the cheaper ciggies and the perks?

    Have you noticed how the same politicians that led the Brexit charge have now abandoned their disgruntled xenophobic sheep? Where are the once garrulous Boris and Gove?

    Like

  44. Vincent Haynes November 6, 2016 at 2:59 PM #

    millertheanunnaki November 6, 2016 at 2:26 PM #

    Boris&Gove’s appointments were a master stroke by May but she must now gird her loins and go for the biggy her own mandate and this is the best time with labour in disarray,she must word her mandate in a manner to play to the small man and minorities,which is Corbyns platform.

    Chuckle…..Farage says that he has a job under President Trump.

    Like

  45. Pachamama November 7, 2016 at 8:44 AM #

    After these placeholders like Theresa May et al become tired of this ‘song and dance’, aimed to fool the people of legal intent, they will allow themselves to fail, just like PM Cameron did.

    We remain perplexed as to how sensible people could entertain anything these idiots say.

    ‘The truth is not in the stars, it is within thee’, sic.

    Theresa May is only a third rate politician excited with being a resident at number 10 Downing

    If anybody this this woman married to capital will do anything to hurt the ‘community of interests’, we have a bridge to sell them – the Brooklyn Bridge.

    Like

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