YOUR LETTERS

NOW the dust has settled, and the “hoo-ha” has subsided on the recent budget presented by Mr Darling, one thing particularly emerged, for me that is, which spoke volumes about the Labour Government and the present crisis/recession.

It was the proposal to give a cash allowance for old cars being scrapped to buy new ones. This followed the example set by Germany earlier on but with some major differences:
1. Firstly it was late, UK in April, whilst Germany introduced it in January.
2. The allowance for old cars by the German Govt. was 2'500 euros each, but the UK Government only allowed 1000 pounds from Government and 1000 pounds (total 2000 pounds) from car dealers/producers.

3. Cars ex Germany that qualify were over 9 years old, UK 10 years old.
4. German government initially allocated 5 billion euros, UK only 300 million pounds for the Government. This would result in only 300'000 cars eligible in the UK, compared to two million in Germany.

This system has already proved highly successful in Germany. Volkswagen for example reportedly sold 120'000 in February alone, but with the UK government making car sellers/producers take on half the old car allowance, it will have a very negative effect. This form of “catch-up” (i.e. four months after Germany)combined with a timid/nervous approach, almost defeats the object of the exercise before it gets off the ground. This is what is flowing through most of Labours' actions to combat and beat the present economic crisis. Pumping billions into the banks to save them, but with no connection/planning to releasing funds for mortgages, loans to small businesses, etc. rather like plugging holes in the leaking dyke, instead of getting ahead of the crisis and preventing more “leaks”. It appears they are only able to react to a problem when it “happens”, just cannot anticipate, plan and prevent the on going issues. It seems all we can look forward to in 2010 is more unemployment, businesses going to the wall and spiraling public debt.

On the Labour Government present (and near past) record, the expression, “not fit for purpose” comes to mind, but probably “not fit to govern” would be more appropriate; the general election cannot come too soon.

Yours sincerely,

Graham Phillips