News from British and Canadian Conservatives

Wednesday, September 20, 2006

Government can't afford own taxes

Caledonian MacBrayne, the state-owned ferry operator of services between the Scottish mainland and its many islands, is to be moved to Guernsey. The move is bizarre, given that the Government effectively pays the tax to itself, so this is merely a case of moving the money from one pot to another.

The managers' reasoning behind the move lies in the need to become competitive when tendering to operate the services, with contracts up for renewal imminently. It seems beyond the Lib-Lab coalition running Scotland that if the taxes make them uncompetitive on the open market, the same must be true for all businesses based in Britain. Clearly, there is an urgent need to address this real issue, before we find ourselves unable to compete in the world and our businesses either move overseas themselves, or go bankrupt.

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