Lord Turner has a point: putting a price on carbon is a crucial instrument to cut emissions. He rightly says that the emphasis should be on encouraging people to cut their fuel use, rather than easing price pressures: “There are huge opportunities for energy efficiency.”
Absolutely. One problem, however, lies in our splendid British tradition of unilateral action. Although our striking truckers earlier this week were being a little economical with the truth about relative diesel prices across the EU, it is clear that they face higher fuel costs than their continental peers. Further increasing the cost of fuel for British truckers will make it hard for them to remain competitive. Does this mean, as Lord Turner suggests, that emissions will be reduced? Not at all. In place of British truckers, who pay tax and spend their earnings in the UK, will be foreign-based drivers. There is no environmental justification for UK diesel to be taxed at 75% while in France and Germany it's taxed at 65%.
What really tickles me, though, is this comment:
“If you are worried about the impact on low-income groups of fuel prices, the response should be to intensify support for them to improve their energy efficiency, rather than say you have to give up on climate change objectives.”
So while Lord Turner can happily spend his king's ransom on private jets to exotic locations, the man on the Clapham omnibus - traditionally a Labour-voter - can stick out the next winter without heating.
Just a thought.
Lord Goring
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