These are circular arguments which mean nothing.  Adrian is quite right
there is elasticity in any fee or tax structure.  The time frame is the only
question.  If people can’t afford the fees then the ultimate end will be the
crushing of boats.  However along the way all your other points will happen.
All boats will be devalued because there will be no demand.  First new boats
sales will tale off then resale prices will fall.  Some will be dragged up
on the hard until they can’t afford to stay, they will be neglected, then
they will be crushed.  Supply and demand are economic realities we cannot
get around.  High fees effect demand.  Any organization that charges fees
will eventually hit a wall beyond which demand will drop radically if the
fees are too high.  At which time fees will be forced down because revenues
are dropping.  The sad part is that many many people get hurt along the way.
Earlier arguments I have heard on this list about spreading the fees more
fairly amongst all the users is in my opinion the stronger argument.  If
there is no way of realistically collecting fees from tow path users such as
cyclist and pedestrians etc. then at least monitor the use and hold the
governments feet to the fire on their obligation to kick in based on the
benefits to the general public, environmental benefits, tourism from abroad
etc..

 

Nick

(a hopefully more reasonable and balanced Canadian)

 

  _____  

From: [email protected] [mailto:[EMAIL PROTECTED] On
Behalf Of Roger Millin
Sent: Thursday, September 18, 2008 11:33 AM
To: [email protected]
Subject: [canals-list] Re: Working narrowboats to pay the £50 "broad" beam
surcharge?! (XP)

 

Adrian wrote:
snipped:
> If you really want BW to use "willingness to pay", then you must
> surely support the idea of BW raising its charges on all boats
> (irrespective of beam) to the level that maximises its revenue. 
That
> would surely remove a lot of boats from the waterways. Hey, that
> would help deal with lock queues, eh?

I'm not sure from where you get the idea that raising licences and 
charges until the pips squeak will ever *remove* a significant number 
of boats from the waterway.

If BW raises charges to the point that there is a significant 
reaction from boaters then those boaters can do the following:
1. Crush their boat, losing any capital that the may have otherwise 
recouped by selling it. Unlikely scenario.
2. Move their boat abroad. Unlikely in sufficient numbers to really 
affect the UK and revenue stream.
3. Lift their boat on to the land and not use it. Unlikely due to the 
space required and the charges that they will incur for storage of an 
unusable asset.

4. The next option is that more people don't bother to licence their 
boat. A very likely scenario but one that does not physically remove 
any boats from the water, it merely reduces BW's revenue.

5. What a massive hike in charges WILL do is to reduce the numbers of 
boats coming onto the water and we've already seen evidence of more 
builders going bust (whether through lack of orders or business 
incompetence though, I'm not qualified to say). This is not a 
removal, it is a reduction of the rate of increase. It will also 
significantly affect the aforesaid builders and other businesses 
offering services to boaters.

So, in no way will increased charges result in a significant drop in 
the numbers of boats currently on the water and this is where BW 
think that they can get away with it. IMO though the major shift will 
be towards number 4 and BW have proved themselves unwilling or unable 
to do anything to significantly control/remove unlicensed boats 
despite the recent high-profile spin that they have been feeding us. 
What they will be able to do if their charges encourage yet more 
people to go unlicensed, when they cannot control those that already 
do so now, presents a very worrying scenario for the future.
Roger

 

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