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The whole thing seems to be a mess. On QT a few weeks ago Owen Smith was asked why he wouldn't have had a referendum if so many people were willing to vote to come out of the UK, but they came out (partly) under the banner of "take back control" only to see a system where UKIP can have millions of voters and still only one MP or where false promises on buses can have such influence in campaigns continue.
I am no fan of Tony Blair. I wouldn't find it to hard to believe that this is meant to disrupt Labour under Corbyn in the next by-election rather than promote UK/EU relations or help bring about a softer Brexit.
I don't have a problem with the notion that a representation of the people (not just Tony bloody Blair) comes in to existence to actively monitor this administration's handling of Brexit.
Currently they seem to have moved on from the 'ooh f*ck, it actually happened .. f*ck me ..' stage to the 'ooh f*ck, I err oh I umm' stage and look ready to rush it as a consequence.
Many level headed folk would prefer to see Brexit conducted with all possible due diligence, in the timescale available.
I'm not sure that is what Blair is trying to drum up, but it may help to create such a representation.