Harold Macmillan was a wily politician of the old school famous for telling voters in the last century “that they had never had it so good”, he was right the Country was finally free of wartime rationing and living standards were rising. He is also fondly rememembered for his answer to the question, ”what as a politician he feared most”, his succinct reply encapsulated the capricious nature of his calling when he said “Events Dear Boy, events”. A few years down the line another slippery customer with his back to the wall famously declared “a week is a long time in politics”, he was spot on of course.
Currently adverse events are controlling the agenda to a degree not seen in recent times, after a decade in what has passed for a comatose state the British electorate is awakening to the full horror of the situation we are currently descending into. The perfect storm of inept leadership, a property crash and dramatically rising oil prices have combined to present the bleakest economic outlook we have collectively faced in decades.
Todays news is that the mighty Spanish and French fishing fleets are going to tie up for the whole of June in protest at record fuel prices, to emphasise the fishermans resolve no imports of fish will be allowed into either country for the duration of the protest. French farmers are reported to be taking direct action to highlight their grievances over the price of fuel.
Tomorow in Cornwall a protest by truckers is scheduled to snarl up traffic on the A30 trunk road. The level of unrest on such a scale is a rare phenomenon but clearly illustrates the desperation people feel and the hardship they are facing. Anger with an administration that appears to be doing nothing constructive to aleiviate the situation threatens to boil over as it bumbles from one catastrophe to the next.
The prospect of peak oil has long been a fact of life, it is a finite resource where the only certainty has been that demand would eventually outstrip supply. To compound the problems caused by speculation, revenue gathering initiatives have been inflicted on British consumers under the preposterous guise of green taxes. Indeed the “green” mantle seems to have ousted patriotism as the last refuge of various scoundrels and false prophets.
This situation is being currently grotesquely distorted by the cynical speculation of the clever opportunistic few wielding the smart money to the detriment of the majority who in the worst case scenario face the prospect of financial oblivion as costs are driven ahead of returns.
The rise and rise of hedge funds set up to milk this situation has rigged and distorted a basically stable market to such an extent that currently anything could happen. It is to be sincerely hoped that the resultant bubble will eventually burst but international trade must first weather the current agony this chain of events is generating.
In the meantime our Government dithers in typical fashion whilst trying to be all things to all men but actually pleasing no one. Help is needed immediately for commercial fuel users, a good starting point would be to suspend the 9.69ppl duty element of red diesel for agricultural and commercial use in line with the concession currently enjoyed by the fishing industry.
Hauliers are requesting, quite reasonably, parity with Continental diesel prices which equates to a cut of around 25ppl to become competitive with European operators. The Government ought to clearly and quickly recognise that parity with European diesel prices would mitigate a crisis exacerbated by excessive taxation.
On the domestic oil front the Government ought urgently to consider giving all pensioners a rebate of the VAT element of their fuel bills.













