[AnthonyDunn]

@ Stringfellow – 25/03/2013 11:10 GMT

I could do with taking a few lessons in brevity from you. Your points are well made.

As I was planning on doing some reading on the Wirtschaftwünder, I don’t suppose that you’ve got any suggestions by any chance?

[Henkel.Trocken]

AnthonyDunn – 25/03/2013 11:06 GMT

+1!

[Stringfellow]

Take a look at the writings of Heinz Starke. The recognition of the need to develop manufacturing in the post-war period is very insightful as well his views on the value/price perception that encouraged the major German car manufactures to position their products at a price point that ensured high revenue.

[Stringfellow]

I am reminded of a dinner I had in Munich, I was sat next to a regional director of BMW and we were talking about the UK banking crises he said something that has never left me,

“The problem with banking as a profession is that they make nothing. If you lend to me, I lend to someone else and they lend to you we all think we have made money but we have in reality made nothing. When we take steel, glass, plastic and make a car that is very different.”

[TimFitzgeraldTC]

Hi Anthony

Just wanted to say thanks for your reply earlier and taking the time to put in a long submission. I don’t agree with every point you allude too and reference but I understand them (which is the important thing).

Personally There needs to be a new Economic Way that isn’t focused on never ending Economic Growth. I almost see the faster the growth the faster the overall destruction of our planet! There needs to be a new way that encourages private enterprise, reduces tax burdens but somehow also improves the standard of living (Economic Growth does not equal better standards of living) and the state being able to deliver the services it needs to effectively. I’m not even going to try and achieve that on this forum. I’d rather do that on a Friday night over a pint if anyone on this forum wants to do that!! (London or Brighton).

Anyway I think the OP was APD. If we have massive imbalances of trade with Europe surely we should retain this on European flight (levels relatively low) and scrap on longhaul travel to rest of the world (especially emerging markets) This way we could reduce dependence on Europe and also keep the Green lobby happy.

[AnthonyDunn]

Ladies and gentlemen, meine Damen und Herren! VMTs your sundry comments and reading suggestions, I have been gently reminded that there are certain tasks that I could do with completing today….!

Tim, in the arena of “political economy”, there is no definitive answer, no absolute right or wrong, just shades of grey and opinion – hopefully based upon a modicum of fact and some real-life experience.

In the words of the old Chinese sage: may we live in interesting times…

[canucklad]

I like the BMW’ director’s point of view……

UK plc …only has it’s self to blame for our current plight, and although I agree with much of Anthony’s comments…I also find myself agreeing with Bucksnet……

1) Most importantly for me is the fact that the referendum held in this country was about joining a European free trade zone…ie the EEC …it said nothing about convergence and dilution of our own parliament.
2) The EU agenda has always been driven by Paris & Bonn for the political and economic benefit of the French & Germans….without being paranoid, their jealousy of our trade links with , what should have been our strongest markets i.e.….the commonwealth !!
3) Is it any coincidence that once you could find British trucks in Africa, now the emblem on the front is more likely to be a Mercedes!!

And getting back to the APD…..The Dutch got rid of it because of competition….Belfast got rid of it because of competition….Our politicians are too parochial to understand global economics and as such don’t view Schipol or CDG as competition!!…….And with that sad fact, APD is not only here to stay but will be seen by Gideon as a nice little earner!

[AMcWhirter]

Hello canucklad

You are correct. As I have written before, our APD only survives on the UK mainland because we are an island.

If there were a land frontier to an airport or airports without APD then our high levels of APD would not work.

That is why the Dutch market lost passengers to nearby airports like BRU, CGN and DUS and that is why BFS loses passengers to DUB.

Canny visitors from overseas arrange to visit the UK first and then return home from elsewhere to avoid our highest rates of APD.

Here is a piece I wrote about KAL’s LGW service where a spokesperson explains that Korean tourists fly into LGW but return home from another airport in mainland Europe:

http://www.businesstraveller.com/news/korean-to-suspend-gatwick-seoul-route

[VintageKrug]

It’s not a great tax, but it’s cheap to collect, collects revenue in greater from those overseas and in business and it’s only having a marginal (and welcome) effect in reducing flying, all the time staving off the inevitable decision to build a new airport for London.

I can’t see it diminishing, although there are many of us who do our damnedest to avoid it, often with some success.

[BigDog.]

APD set to be abolished on Children’s flights – potentially saves £194 on a trip to Oz or £138 to the US.

http://www.dailymail.co.uk/travel/travel_news/article-2846055/Air-Passenger-Duty-flights-children-set-axed-slashing-plane-tax-average-UK-family-half.html

A pro-family move by the Tories or a relatively cheap (£50m) headline grabber?

One hopes WW will follow the lead and scraps BA’s egregious level of fuel surcharge on children’s seats also.

[HarryMonk]

It will all be in the details and my guess it will effect very few. Will it be abolished only on a “Child Fare” ticket or on all tickets purchased on behalf of a child? Remember the LCC’s don’t have “Child Fares” and I would suggest many more families use these than the legacy carriers.
Secondly, as far as many airlines are concerned, childhood ends at 12.

[canucklad]

I wouldn’t get your hopes up. I was listening to an interview on radio 5 live and its sounds very much like a pressure group. The spokesman mentioned that they had the support of 30 MP’s. The cynical me, might agree with BigDog that the government might just be tempted to use the abolition of the tax for kids as a bribe to core voters.
Personally, I’d be surprised, because if they do that, there can be little excuse for them NOT to transfer the management of the tax to Edinburgh, as they panickly promised when the polls showed the Yes campaign ahead in the last weeks before the vote.

[AnthonyDunn]

Bearing in mind that the deficit reduction plan is failing to meet the targets set by Gideon Osborne back in 2010, I would have thought that any further tax reductions should be off bounds. With the serious prospect of VAT being increased to 22.5% or even up to 25% after the next election (let’s remind ourselves that air tickets are zero-rated for VAT), there is a coherent line of argument that any reduction in APD would be iniquitous.

[Charles-P]

‘canucklad’ – I share your cynical view of vote winning policies however I doubt if the abolition of APD has many votes in it. In the present political climate and the influence of the deeply offensive UKIP I would suggest that taxing passing Bulgarians has more votes !

[SimonS1]

Well we are in the run up to an election so anything that is i) cheap, ii) popular and iii) gains votes will tick some boxes.

Personally I’m more interested in hearing the government’s strategy towards dealing with challenges of our existing transport infrastructure reaching capacity and how they plan to deal with this so the economy stays competitive.

[Author]

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