Wednesday, 28 May 2008

Stand Firm Gordon and make the difficult decision.


So Gordon Brown is to meet the oil chiefs or at least the British ones.

I am struggling to understand the purpose however of this meeting.The only solution to the price of oil is either an increase in supply or a drop in demand.Neither of which the UK oil industry can really affect.

After all as the Prime Minister recognises,this is a global problem.Writing in this morning's Guardian he says

The cause of rising prices is clear: growing demand and too little supply to meet it both now and - perhaps of even greater significance - in the future. Higher demand is one of the major results of the scope, speed and scale of globalisation as Asian economies, as well as Opec countries themselves, demand more oil.


I worry when I here that a government U turn over fuel duty may be on the cards.Firtsly from pure fiscal issues,where is the money going to come from other than another increase in borrowing.Secondly again this is simply pandering to the wishes of backbenchers and sectors of the population.The car tax issue as with the 10p tax rate is proving to be another error that can be traced back over 12 months.

Fuel duty is not and we need to use the rise in oil prices to force the agenda of looking at alternatives both of fuel itself and lifestyle.

This morning's Independent outlines the longer term issues on its front page

Gordon Brown has been urged to stand firm against calls to abandon green tax rises on fuel as environmentalists warned that scrapping the proposals would risk undermining Britain's drive towards a low carbon future and send the wrong message about the Government's commitment to tackling greenhouse gas emissions


So Gordon and Alistair.Stand firm and as you say make the difficult and unpopular decisions that have a long term benefit

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