There was an announcement this week that there will be no change to the way the Retail Price Index will be calculated and its relationship to State pension changes, however the lower Consumer price Index will be supplemented by two further price indices.
What a mad way to run an economy, of course you can now take whatever index suits your purpose, regardless of the people who have to live with it, why can’t we have a simple index which reflects reality and actual living costs? It is now accepted that costs for pensioners are higher, possibly double RPI.
How often do pensioners change their mobile phone or Ipod, their Hi-Fi, furniture and latest clothing fashion? What is their level of HP, mortgage or general loans? Is it not time we introduced an index that reflects the basics of living, the cost of energy, water, Council Tax, standard food and clothing, insurance, travel, normal telephone and all the essential needs of day to day living.
Forget the luxuries, which many cannot afford and concentrate on the essentials, they can be included in a second index, with mortgage and financial costs if necessary. Let us come down to earth on what happens to real people and not what is perceived to be important to some.
Many of the policies coming out of Government and the EU increase living costs in a manner that is too fast or idealistic and often only benefits a minority. Green energy is a good example; a large part of energy price rises come from uneconomic renewable energy sources, which are intermittent and will never meet our energy needs.
Meanwhile the Far East, US and developing Countries pour out ever increasing quantities of CO2, destroy absorbing forests, all well in excess of the meagre savings of wind turbines and solar panels. The lack of a coherent energy policy and control allows us to be held to ransom by speculators fixing future gas and oil prices.
Transport costs rise regularly affecting the price of everything; rail fare increases exceed inflation for the tenth year, with record traffic but little improvement. In spite of modern communication technology, satnav, computers and broadband, signalling is out-dated, trains and drivers cannot converse or detect each other.
Yet a simple cheap self contained rail side vehicle detector, similar to TV remote, could monitor train frequency and speed, issue warnings and lights and even apply brakes, without wiring. A vacuum freight train network, using gas pipeline technology could link all major areas at a cost well below HS2, with large savings in fuel, cost and time.
Councils, basically us, face large EU fines if recycling targets are not met, resulting in high costs in meeting these, including shipping rubbish around the world at large energy and shipping costs; fishery protection results in dumping perfectly good fish, we waste more food than we eat etc etc.
World resources need protecting, but by better utilisation, making goods more reliable and using them longer, not by changing them every year to meet fashion or the latest technology. Resources and energy need to be used with respect, there is more to be gained by energy insulation and use, by producing more locally to avoid transport, etc.
Another good example of EU stupidity is the recent sexual equality edict interfering with Insurance; car insurance and annuities are based on risk; male drivers are more accident prone, women live longer, forcing equality ignores this, increasing costs unnecessarily.
We need to get back a sense of proportion, approach things in a common sense manner, planning for the longer term effect in a logical manner to achieve what we intended or expected to achieve. Living costs are or should be a major concern in all changes.
The more stable these become the less the need that arises for the ever increasing growth spiral arising from inflation, which would create more confidence in the future, less anxiety and allow real advances in living standards.
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