Apr 2008 11

Politicians should tend to their own responsibilities instead of spending their time hassling business6

Two stories from the Telegraph today that have a common theme.  The Government have ‘negotiated’ a plan for energy companies to help certain householders with their fuel bills:

"An extra £225 million will be provided by the six biggest energy firms over the next two years to help those who are struggling to pay, said John Hutton, the Business Secretary.

He estimated that the money could remove up to 100,000 people from fuel poverty – where 10 per cent of household income is spent on heating."

And, Internet service providers might be taxed to support unprofitable programmes:

"Internet service providers could face a new tax to help pay for unprofitable programmes shown on ITV and Channel 4, which may in turn lead to higher broadband charges for consumers.

The levy could be imposed by the Government on the service providers and websites within the next few years, under proposals published yesterday about the future funding of "public service" programmes which make little or no money for commercial broadcasters."

In both cases the private sector is being forced, either directly or through threat of regulation, to tend to Government priorities rather than getting on with its own job of trying to obtain a return for its shareholders by providing for its customers.  If the Government hadn’t put in place green regulations that constitute 8 per cent of the cost of energy far fewer people would face fuel poverty.  Why broadband companies are responsible for current affairs programming on TV is a mystery.

So often politicians fail to deliver quality public services that people would use even if they had a choice.  They should stick to their own jobs instead of spending their time hassling businesses in competitive industries that successfully provide the services or products their customers want.

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  • Graeme Pirie

    If the energy companies have money to give away then they’re making too much profit.
    What do we pay a regulator for? He’s clearly not doing his job.
    It seems to me this is yet another stealth tax – take it from taxpayers and give it to government to dish out to their “worthy causes”
    Overall it’s obviously a case of far too many politicians & civil servants with time on their hands thinking up other areas to interfere in – yet more cause for lower taxes!

  • http://www.atflynn.co.uk Anthony Thomas Flynn

    I made this comment some little while ago, but here we go again.
    As the SNP insist, a local Taxation system would allow Local Authorities to control who provides services in their Counties, by the simple method of a cap on charges. Take water for an example. Why not revert to the original Local Water Co. Today you have no choice, for the providers, it’s nothing but money for old rope. Abandon Westminster and their Highway Robbery, tell that bunch of wasters they’ve past their sell-by date.
    Regards, ATFlynn, “Norfolk’s “Mutineer”

  • Acorn

    Don’t forget this one. http://news.bbc.co.uk/1/hi/uk/7343737.stm
    The next time you get pissed remember it is the pubs fault not yours. And, don’t forget to tell the judge that.
    “Mum, is 125ml bigger or smaller than 175 ml”. “Ask your father, he went to a private school.”

  • Patrick

    Forcing companies to support poor people is another tax, a further steath tax because everyone then payes higher prices. This is clearly a device to conceal more taxes and these companies should refuse and force the goverment to back off or face the consequence of imposing further taxes.

  • Hardeep_Singh

    How on earth can they make the connection between an internet service provider and public information programming? Why should these hapless victims being threatened with an extra charge, I can see on justification in this, none whatsoever.
    Perhaps we should be looking a little closer to home. The great untouchables, the BBC themselves have had a free hand at our expense for too long. Therefore I cannot see why a significant portion of the TV licence fee cannot go to subside other media outlets. Of course luvvies at the BBC aren’t going to play ball.

  • cw

    Utility companies having to subsidise poorer customers is another stealth tax – unless the government has yet to make public that the cost is to be reimbursed from government unclaimed benefit funds. It has unclaimed funds to cover this many times over.
    If not this also means that some poorer utility company customers who don’t claim, but get by will be subsidising others as badly or better off.
    Even if the government were to reimburse the cost, this process creates a huge, wasteful duplication of the government benefits administration in each affected utility company.
    Yet again the government has become part of the cause of high energy prices.