Crosshire

Executive Hire News, March 2009                                           Go to main Crosshire page

Red tape and red diesel

Readers will recall that, several years ago HM Revenue & Customs decided to make life more difficult by requiring those who store and re-sell gas oil to fill in monthly returns, known as the RDCO scheme. I was told it would stop red diesel being used as road fuel, but I predicted it would not, since itinerants would continue to thieve it, while other low life would just tellporkies about what they were buying it for.

For the first time in over five years, our paperwork for the December gas oil return was not received - probably because our Royal Mail depot is under closure threat and, according to our postman, we should be grateful they deliver anything at all. In January I got a sharp prod in the form of a late return penalty notice. I protested and was told that, as we were normally good boys, we would get a pardon.

A few days later, as a result of this heinous lapse in keeping assorted jobsworths employed I was contacted by the Revenue’s Mineral Oils department, informing me that as our card was marked, our returns had been audited and - shock, horror - no trace of our return for October 2003 (!) could be found. Now, with the world falling apart and politicians claiming politicians claiming to make life easier for business, what the hell does a missing return for over five years ago matter? Just think how much time and money is wasted by Government officials with ring-fenced jobs on such trivia. Better still, consider that it won’t be long before those smug financial sector workers looking for new employment will be finding their way into cushy Civil Service posts. After all, someone has to employ them: no one in the real world would.

Positive action, not panic

More than one of you have asked why I refer to the present situation our politicians and banks have got us into as an Emergency. I refuse to use the ‘R’ word as I consider it legitimises their feeble excuses. Those most at fault are still receiving personal payouts greater than what many smaller outfits in our industry turn over in a year. The politicians have shelled out dumper-loads of our cash to ‘help’ us, but how do we get hold of it? Surprise, surprise: we don’t all line up in front of that nice Mr Darling in Whitehall with an open bin bag.

We must apply to the banks, which are charged with administering any handouts (on a cost-plus basis no doubt) because they are deemed the only organisations with the infrastructure to do the job! It needs positive action, not panic, to get things back on track. The last thing our industry needs right now is the sort of stupid price cutting being practised by some of the larger hire groups. The short-term gain of getting business at any price will be quickly offset by the lack of maintenance and unreliability. It also appears that suppliers are being pressurised by some larger players to provide kit on a ‘rental share’ basis. In other words, give us shed loads of kit up-front for free, and we will knock the backside out of the hire rate and give you a share of the revenue!

Such wheezes were tried last time round in the early nineties, mostly by companies that are, thankfully, no longer with us. Last month’s Executive Hire Show was packed with familiar faces, mostly from the independent hire segment, and comment was measured but positive. The overall message was pretty clear: everyone has to work hard to stand still right now, but business is being done. The suicidal price cutters can
get on with it because independents will not join in, and will be there to pick up the pieces. Those getting rid of their best fitters and hire staff, and then trying to run depots with one man and his dog will come unstuck soon enough.

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