RANT ALERT: Cynical views expressed in this posting about climate change, taxes, government and Operation Iraqi Liberation (OIL), if my personal views are likely to offend you please don’t read it...
The guys in numbers 10 and 11 respectively understand the principle of Elasticity of Price very well, and they are aggressively applying it here...
If they had the guts to tackle this head on and seriously reduce utilisation they would up the price to £3, £4 or even £10 per litre. But this would make driving/flying (anything that uses the black gold) unaffordable. GA, apart from a couple of people with deep pockets will cease to exist, and a lot of airlines will simply have to stop operating. Similarly the principle of higher road tax on the evil gas-guzzlers, have the courage of your conviction Mr11 to up the annual road tax to £5000, then you will make people think very carefully before they buy these machines that are supposedly destroying our planet. Very few think about the fact that people that drive these vehicles are already contributing more to his coffers, because they are buying more fuel at the rather inflated price... The knock-on effect from drastic measures like this will be significant, and 10&11 knows that very well.
I read a while ago, and I hope someone has the accurate stats somewhere, that GA used less fuel in the entire 06/07 fiscal year than was estimated to have been consumed by the combined vehicles in a single morning or afternoon commute in London. Seems mind-boggling, but quite plausible.
I am comfortable that GA is going to become the target of taxes to breaking point. This all in the name of green issues, our planet quite frankly is facing its largest assault in terms of number of people that currently populate it, shortage of oil, food, water and whatever else you would want to include in that list is as direct flowdown from this one factor. No attempt is being made to reduce or contain population growth, why are there no taxes on family size? Simply because there is no way of attempting something like that without ending up on the wrong side of the human rights activists, which would be way more difficult to manage than having to deal with a couple of squealing "rich" flyboys and flygirls complaining about spending more money on something we have been made to feel guilty about, the 'climate-change' monster. The rumoured increase in Jet-A1 taxes for domestic use is arguably the best example of this. In excess of 99% of Jet-A1 is used internationally by commercial operators, people that clearly have spoken with 10&11, and have the power to dissuade them from imposing this type of tax because it would harm their business. Why can this not be extended to the smallest user is obvious, we, the GA community, are prepared to pay handsomely to maintain GA.
The balance sheet of our country is not looking good at this stage. Billions are needed because, apart from a significant outflow of cash to placate a voter base that in turn contribute very little if anything to the budget, we were taken into a very expensive war in the Middle East. Personal views on the appropriateness of that involvement aside, it remains a very expensive little excursion, and the current government has to fund it somehow or another. I guess that part of the calculations would the significant probability that the current government would not be in power beyond the next election, considering current voter sentiment. That does make it a little easier for 10&11, because they only need to balance the books for another couple of years, and leave the long-term ramifications for someone else to resolve.
Bottom line is that governments will take the path of least resistance to generate the income they need to fund their existence, whilst upsetting the fewest possible voters... GA does not have the critical mass to influence voting, but we certainly will continue to haul our chequebooks out to maintain our passion, and 10&11 knows that.
Over a barrel? You decide, I say more than likely yes..!
Off my soapbox and donning my flameproof suit at this stage.....