LadyEllen
Posts: 10931
Joined: 6/30/2006 From: Stourport-England Status: offline
|
Public sector price fixing - yes, it means that the exchequer has to pay more. But it also means - higher turnover for the private companies involved, who then pay more VAT - higher profits for the private companies involved, who have to pay more corporation tax - better employment packages for those delivering the construction, hence higher NI and income tax contributions - reduced social welfare budgets, by way of that employment in contrast with tax credits for low wage work or unemployment and going back to my points about my industry - safer conditions for those delivering the construction - better equipment for those delivering the construction - more satisfactory construction Overall, in an industry where there is no USP by which to win business and so by default the competition is based on lowest bid, I would guess that notwithstanding the illegality of the practices involved, the overall public finance nett result is likely zero or slightly positive from engineering the market in this instance. But its illegal. As such the directors and their agents should be jailed pro rata the normal jail sentences for other forms of fraud on the exchequer. 3 months for a benefit fraud of £1000-00, indicates that for a £1,000,000-00 offence the sentence should be 3000 months (250 years). That it doesnt happen at all indicates that the powers that be know which side the bread is buttered (the same the world over) and all this is for show and out of fear for what the EU might have to say. Meanwhile its perfectly OK to have dairy farmers go out of business for want of a reasonable price for their milk. Still, any collusion on their part to demand a reasonable price would be the most awful circumstance since 1939, and whats important is that I can buy 4 pints for less than a pound. The overall point is, that in markets where price is the competitive factor and in commodity markets, there is every reason to have a conference which sets minimum prices such that quality, health and safety, personnel welfare and above all the continuity of the sector can be maintained and developed. If suppliers can meet that minimum price and fulfil their obligations then they will be driven to find better means by which to compete than price, thereby removing the whole problem of market price fixing whether it presents problems to the supply or customer side. E
_____________________________
In a test against the leading brand, 9 out of 10 participants couldnt tell the difference. Dumbasses.
|