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Monthly Archives: May 2008

Events Dear Boy, events! Have you got the message yet, Gordon Brown Prime Minister of Great Britain???

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. 

The tipping point, maybe, but why are Her Majestys Revenue and Customs getting shirty over mega VAT refunds?

Last nights television news gave extensive coverage to the fuel protests that occurred in London and Wales yesterday as the Government continues, in typical fashion, to dither on the issue of vehicle excise and fuel taxation. Desperate for income to feed a Treasury running on empty the Government is now acutely aware of the potential consequences if it pursues its stated intention of increasing vehicle excise and fuel taxes. Are we about to witness yet another damaging U turn as a result of ill concieved, tough talking “environmental” policies hastily introduced, in reality,  to increase revenue without due consideration of the inevitable hostile outcome now unfolding?

There are very interesting echoes of Thatchers Poll Tax disaster when the “Iron Lady” made an incredible miscalculation necessitating a humiliating climbdown that she was never really forgiven for.

When will this current administration finally accept that they work for the electorate, not vice versa, and ultimately can only Govern effectively by consent. 

Talk of the $200 barrel has assisted the speculators thus far but from my viewpoint we are at or close to the tipping point where the bubble bursts. Brent crude came within a cats whisker of breaking through the $130 a barrel recently but dropped $0.94 cents to $128.94 yesterday. This is despite various news items concerning Nigerian unrest, declining Mexican production and North Sea maintenance shutdowns. As recently as last week this would have hiked prices by $3-$5 a barrel.

A slightly stronger dollar coupled to significantly lower US gasoline demand statistics contributed to a small but significant price retreat yesterday that probably reflects the fundamentals of supply and demand reasserting themselves over speculative hysteria which has hitherto driven the market in recent months.

Whilst our daily volumes delivered are still holding up far better than expected customer feedback indicates that many are suffering from the crushing burden of fuel costs that are not being reflected by increased margins to offset them.

One interesting consequence for us currently is VAT, everything we purchase is subject to the standard 17.5% VAT rate. Much of what we sell is at the 5% rate so we are always substantial monthly net reclaimers of VAT. Historically returns submitted electronically have been repaid in as little as 48 hours, an excellent service by HMRC. As the fuel price has risen the monthly VAT reclaims have increased accordingly, its not rocket science.

HMRC are clearly not rocket scientists as they have over the past several months dragged their feet when making VAT repayments. When pressed they have said there is a query but in typical beaurocratic manner refuse to reveal exactly what the query is so that it can be promptly resolved. Admittedly they do have 30 days to make a repayment but they have proven by past performance that it can be done quicker. Currently we have been waiting 23 days for a very large repayment for April, the money is mine and I want it back. I must admit to finding HMRC’s current ambivalent attitude obstructive and unhelpful, my MP and Business Link are assisting with the matter but these channels seem to take for ever. Further approaches by our trade association on behalf of its many members affected have also generated a negative unhelpful response which does little to enhance ones perception of HMRC as a client service orientated organisation. On past experience they operate to double standards with one set of rules for themselves and a totally different set for clients.

 Is there a hidden agenda to hold the money due as repayments to the fuel trade to bolster Government funds, its an interesting possibility.

The death throes of New Labour’s alien administration are bringing Blairs “Big Tent” down around their ears.

The surreal world we are currently operating in where everything seems possible but nothing is as it seems continues to perplex me. A clique of serially incompetent politicians have just recieved their third bloody nose inside a month, ARE THEY LISTENING NOW??? The fuel price situation continues to deteriorate, whilst not the Governments fault (just for once) their fuel taxation policies continue to add to the resultant misery that everyone is suffering.

Life in Blairs “Big Tent” is looking decidedly dodgy as the cold winds of recession tear at the guy ropes and expose the structural defects of the “New Labour Project”. As the minions face the looming  possibility of mass unemployment in the foreseeable future the search for a scapegoat intensifies. It is perversely satisfying to see the panic gather pace. Smugness has evaporated as the awful reality finally sinks in that the game is up and the gravy train is hurtling headlong towards the buffers. Fair weather friends who bankrolled the folly are deserting in droves as the disaster unfolds.

The resurgent conservatives, having suffered a well deserved 11 years in the political wilderness are beginning to exhibit signs of electability, it is sincerly hoped that the wilderness years have not been wasted and hard lessons have been learned. If indeed they manage to get elected next time the mess they inherit will test them to breaking point from day one. How ironic that last time around John Majors legacy was the strongest economy for generations, so strong that it has taken New Labour over a decade to financially self destruct.

Whilst number 10’s current incumbent is reaping the firestorm of voter wrath his predecessor initiated, he is not blamless for the parlous state of UK plc’s economy. At the outset Mr Brown the “Iron Chancellor” conducted the raid on pension funds that saw 30 years worth of mine return slightly less than the sum of the contributions when I cashed them  in recently while there was still something left. His tax and spend mentality has has come across as vindictive and wasteful, harming that industrious and productive sector of society that actually contributes the most. The feckless sroungers who produce so little and the super rich while at opposite ends of the wealth spectrum have prospered while the productive centre has been squeezed until the pips squeak.

My business, along with countless others is weighed down by red tape that saps vitality and stifles growth, health and safety has gone way beyond commonsense as a generation of beaurocrats and consultants wax fat on the spoils of the bloated empires they have spawned.

Big Government currently intrudes into our lives at an accelerating pace as the surveilance society justifies its pernicious agenda by citing the threat of terrorism. How dare they suggest that every telephone call or email is recorded permanently in case it is needed as “evidence” at some future date. The threat of terrorism whilst a clear and present danger is still infinitesimal when viewed against the cost of proposed measures to counter it financially or even more significantly the implications for individual liberty or privacy. Strangely enough the issue of identity cards has gone ominously quiet recently, is it because the financial implications are slowly beginning to register with an increasingly financially embarrassed, hopeless Chancellor?

The often voiced concern that nothing really works as it should despite the billions of taxpayers money thrown at various public services is increasingly relevant as the incompetent follies of various Government departments continually crash home to roost.

Tax credits are a case in point where the dishonest are milking a system designed undoubtedly with the best of intentions to help the underdog who works for a pittance. There are countless families who commendably choose not to become clients of the state. This is not a soft option as the breadwinner is taxed to the point where it is actualy easier not to work. The money taken is then repaid as a tax credit, surely it would be better if these unfortunate people were removed from the tax net altogether?

The problem is that the people who dream up these schemes have never experienced the real world of work where poor performance rapidly equates to no job. Politicians of all persuasions almost invariably put their own wellbeing and survival before other considerations so very few are capable of grasping the harsh realities of the real world beyond the Westminster Village. This is a hard place where there are no perks, no gold plated pensions, no subsidised mortgages or 1st class travel, A harsh environment that most Politico’s are incapable of embracing or envisaging.

The newly resurgent Tories need to take this on board now, I cannot be the only taxpayer burning with raw anger at the parlous state of our blighted divided little Nation as a result of more than a decade of hopeless innefectual leadership. The guliability of voters wallowing in the feelgood factor of obscenly inflated property values and cheap borrowing on the overinflated equity generated beggars belief.

If New Labour are to be remembered for the one thing it got right it must be the consummate ease with which it has long conned the British Electorate into believing everything in the garden was rosy when it patently was not. As with all propaganda machines the clever but deluded fools who promulgated the lies probably believed them to be true. 

It therefore necessarily follows that a generation of disengaged comatose voters actually got what they deserve and a very very hard lesson is in the process of being learned.