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Friday, March 2, 2012

Govern

Years ago, in the 1980s if I remember correctly, there were a number of haulage operators in London who employed day drivers on tipper work.  Most of these men lived locally and enjoyed a drink after work.  But one operator stands out in my mind because he opened a pub close to his yard and filled it with trucking memorabilia.  By all accounts his drivers loved the place and duly dispatched a proportion of their wages across the bar each week.  A cynic would point a finger at an unscrupulous employer – paying his drivers with one hand and taking his money straight back with the other.  Others, including many drivers, might say that he was providing a comfortable and familiar environment to relax in.  The fact is that if the beer was sold for a reduced profit they would be getting a bargain, and by not lining the pockets of some other local establishment, both driver and boss would benefit.  It`s with this type of rare, innovative thinking that The Government could do something to help the cash-strapped haulage operator. 
Don`t even think about a reduction in tax revenue; that`s simply not going to happen.  Look at light vehicle MOTs.  Common sense says that current technology and vehicle reliability only require an inspection every two years, but the government turned down such a recommendation and opted to stay with the current system.  The reason had nothing to do with road safety, it was purely down to revenue – they feared a reduction in garage employment, income and, therefore, treasury funds.  But The Government has always dabbled in income generation outside the tax system.  It sells bonds, it allows the Royal Family to parade themselves for fee paying tourists, and it allows donations.  So what about running its own fuel company?
As a bulk supplier to the haulage industry, The Government could trade in bunker delivery or volume purchases at the pumps.  The tax on diesel would not change, only the profit made.  Any decrease in tax revenue from the main fuel companies, due to a reduction in truck fuel sales, would be compensated for by the profit (all be it reduced) and tax the Government`s fuel company created. Governing the industry`s diesel supply could be the answer, and a rare situation where everyone benifits.     

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