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B709 - Nationalisation (Filling Stations) Bill 2014 watch

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    B709 - Nationalisation (Filling Stations) Bill 2014, The Rt Hon. O133 MP

    Nationalisation (Filling Stations) Bill 2014

    An Act nationalising filling stations (who knew?).

    BE IT ENACTED by The Queen's most Excellent Majesty, by and with the advice and consent of the Commons in this present Parliament assembled, in accordance with the provisions of the Parliament Acts 1911 and 1949, and by the authority of the same, as follows:-

    1: Definitions
    (1) “Filling Station” refers to anywhere where fuel is sold for the use of road vehicles.
    (2) “Adjoining Shop” refers to any shop where fuel at a filling station may be paid for.
    (3) “Supermarket” refers to a chain of more than 10 shops selling primarily groceries and with an average shop floor size of 300 square metres.
    (4) “Local Business” refers to either:
    a. any shop chain with all of its shops within 80 km.
    b. anybody proposing to open a first shop and living within 30 km.

    2: State Purchase of Filling Stations
    (1) All filling stations will be bought at their value by the Government.
    (2) The Government will then perform an audit to determine the number of filling stations required in each area, and sell or build filling stations accordingly.
    (3) The remaining filling stations will be run by the Government under the name “British Fuels”.

    3: Range of Fuel
    (1) All filling stations will sell unleaded petrol of RON 95 (to be sold as Unleaded 95) and 98 (to be sold as Super Unleaded 98) and diesel.
    (2) All settlements with a population of 10 000 or more shall have a filling station selling liquefied petroleum gas (LPG).

    4: Fuel Pricing
    (1) The average pre-tax price per litre of fuel is to be determined by dividing running costs by estimated sales.
    (2) The pre-tax price of individual fuels is to be determined proportionally to their cost to British Fuels.
    (3) Tax will continue to be levied on fuel normally.

    5: Adjoining Shops
    (1) Adjoining shops will also pass into Government ownership, but will be let out to private businesses.
    (2) The tender process is as follows:
    a. The lease of the shop will be decided by a Government controlled and initiated bid.
    b. The Government will put out an asking rate for the shop’s rent.
    c. Any body can bid for lease of the shop.
    d. If a supermarket was the previous owner of the filling station then they will be given the first option on leasing the shop provided they pay the Government asking rate.
    e. Local businesses will be given priority over larger national chains in the bidding process.
    f. If the local company pays at least 60% of the Government asking rate then they will be guaranteed lease.
    (3) Each lease will last 5 years at which point the tender process is re-run, with the current tenants having priority.

    6: Hydrogen Fuel
    (1) The Government will investigate the practicality and safety of replacing petrol and diesel with hydrogen fuel, including the possibility of biohydrogen.

    7: Commencement, Short Title and Extent
    (1) This Act may be cited as the Nationalisation (Filling Stations) Act 2014.
    (2) This Act shall extend to the United Kingdom; and
    (3) Shall come into force on the 1st of January 2017.



    Notes
    Co-authored by O133 and nebelbon (yes, seriously).

    Approximate Costings:
    £4.25bn fund to buy filling stations over a 10-year period (approximately £425m finding required per year).
    ~8500 filling stations in the UK to be bought at an average of £500 000 each

    All costs of purchase to be recouped by the Government from sales/rent.

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    Aye. I'm not necessarily introducing the most interesting bills at the moment though.
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    NEVER! I think this is a terrible idea. Not only will it cost a load to buy them all up. I highly doubt each filling station will cost £500,000 but there will be extra costs associated in finding the right suppliers for the fuels and the cost of buying tankers to transport the fuel to stations as most stations use their own tankers. A private company could set up a tanker service but charge lots pushing up the price of fuel more. The cost of running tankers will be high too.

    Operating costs for nationalised things are usually higher so taxes will have to be increased to cover those costs. The most profitable part of a petrol station is the confectionery and snacks it sells in the little building. Nearly all petrol stations have a little shop area so you will rent out the shop to a supermarket who makes loads of profit from it while you take on the loss-making process of selling fuel. Petrol stations have the shop as the cost of bringing fuel in and maintaining the pumps/forecourt isn't covered by the revenue generated from fuel sale. The building maintenance will be covered by rent from the shop but the only way to make the process of selling fuel profitable at stations is to increase taxes to cover the cost. I don't want more expensive fuel so NO!
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    'Nay'.

    In prior reading i'm pretty sure i saw that their average profit margin is about 5% (i.e. not much). I see little reason to bring these into public ownership.
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    Pretty much anything involving nationalisation gets an automatic no from me.
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    (Original post by Ruitker)
    The building maintenance will be covered by rent from the shop but the only way to make the process of selling fuel profitable at stations is to increase taxes to cover the cost. I don't want more expensive fuel so NO!
    A nationalised system doesn't need to make a profit, only balance the books.
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    (Original post by O133)
    A nationalised system doesn't need to make a profit, only balance the books.
    Then what is the point?
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    (Original post by Cryptographic)
    Then what is the point?
    Exactly that, it doesn't need to make a profit, so less income is needed, so fuel can be sold at a lower price.
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    (Original post by O133)
    A nationalised system doesn't need to make a profit, only balance the books.
    It wouldn't even balance the books with taxes at the current level. Just selling fuel alone is loss making. The little shops turns the whole venture into a profitable thing (the total profit margin is under 5%. The loss for fuel alone is 11%) To balance the books you would need to significantly increase taxes on fuel. Is that really a wise idea in tough economic times?
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    (Original post by Ruitker)
    It wouldn't even balance the books with taxes at the current level. Just selling fuel alone is loss making. The little shops turns the whole venture into a profitable thing (the total profit margin is under 5%. The loss for fuel alone is 11%) To balance the books you would need to significantly increase taxes on fuel. Is that really a wise idea in tough economic times?
    So we have two options:
    a. Nationalise the shops too.
    b. Increase the rent on the shops so more of the profit goes to subsidising the fuel.

    Although if this is the case why are shops so uncommon at petrol stations in France?
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    (Original post by O133)
    So we have two options:
    a. Nationalise the shops too.
    b. Increase the rent on the shops so more of the profit goes to subsidising the fuel.

    Although if this is the case why are shops so uncommon at petrol stations in France?
    Less taxes on the production and initial sale of fuel to the petrol pumps in France. The profit margins on selling fuel in France is higher due to lower taxes. French companies can sell fuel at a lower price with a greater profit. The profit from fuel covers the extra costs associated so no need for a shop to make it up. In the UK sellers take a dent in their profit margins to try and keep fuel affordable for most people in the UK. If we cut taxes on fuel it could be affordable for the government to sell at a profit or break even levels but this bill wants to increase taxes hoping to fund the venture from such taxes. It's a counter productive tax.
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    (Original post by Ruitker)
    Less taxes on the production and initial sale of fuel to the petrol pumps in France. The profit margins on selling fuel in France is higher due to lower taxes. French companies can sell fuel at a lower price with a greater profit. The profit from fuel covers the extra costs associated so no need for a shop to make it up. In the UK sellers take a dent in their profit margins to try and keep fuel affordable for most people in the UK. If we cut taxes on fuel it could be affordable for the government to sell at a profit or break even levels but this bill wants to increase taxes hoping to fund the venture from such taxes. It's a counter productive tax.
    We certainly don't want to increase taxes anywhere in this bill.
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    (Original post by O133)
    We certainly don't want to increase taxes anywhere in this bill.
    4: Fuel Pricing
    (1) The average pre-tax price per litre of fuel is to be determined by dividing running costs by estimated sales.
    (2) The pre-tax price of individual fuels is to be determined proportionally to their cost to British Fuels.
    (3) Tax will continue to be levied on fuel normally.

    You want to turn a loss-making process into a break even process by using tax revenue to meet the running costs associated. Current tax revenue will be too low so to meet the extra revenue needed you will have to increase taxes. If you scrapped the taxes and made selling fuel profitable, you could turn all UK petrol pumps into a cash cow for the UK government. The cash coming from profit and not tax. The profit would hopefully be greater than tax revenues.
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    Aye, good idea :yy:
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    (Original post by Ruitker)
    4: Fuel Pricing
    (1) The average pre-tax price per litre of fuel is to be determined by dividing running costs by estimated sales.
    (2) The pre-tax price of individual fuels is to be determined proportionally to their cost to British Fuels.
    (3) Tax will continue to be levied on fuel normally.

    You want to turn a loss-making process into a break even process by using tax revenue to meet the running costs associated. Current tax revenue will be too low so to meet the extra revenue needed you will have to increase taxes. If you scrapped the taxes and made selling fuel profitable, you could turn all UK petrol pumps into a cash cow for the UK government. The cash coming from profit and not tax. The profit would hopefully be greater than tax revenues.
    (3) Tax will continue to be levied on fuel normally.

    I don't see how this involves raising taxes, which are a matter for the Chancellor in the Budget.
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    (Original post by O133)
    (3) Tax will continue to be levied on fuel normally.

    I don't see how this involves raising taxes, which are a matter for the Chancellor in the Budget.
    I read it incorrectly. I read it as the tax being determined by the running costs. I apologies for that claim.

    That aside, your idea of increasing rent to cover the fuel selling costs will cut profit margins for the shop. The cost of the building the shop is in can be separated from the cost of the forecourt and selling costs. An increase in rent may cover the entire process of a petrol station but the profit for the shop will be so little no incentive will exist to want to put a shop there. The only alternative will be to own and run the shop. It's the start of communism...
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    (Original post by O133)
    Exactly that, it doesn't need to make a profit, so less income is needed, so fuel can be sold at a lower price.
    Profit margins are tiny, over half the cost of fuel is tax.

    (Original post by O133)
    So we have two options:
    a. Nationalise the shops too.
    b. Increase the rent on the shops so more of the profit goes to subsidising the fuel.

    Although if this is the case why are shops so uncommon at petrol stations in France?
    c) Stop taxing people!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!

    d) Leave things as they are as electric cars become the norm and the petrol station dies.
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    An interesting prospect and I will probably vote aye. Although Rakas brought to the front of my mind petrol dying off in the distant future, I expect we'll get some decent service out of it though.
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    (Original post by Rakas21)
    d) Leave things as they are as electric cars become the norm and the petrol station dies.
    This bill allows for research into hydrogen - which is perhaps more practical than electricity.
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    (Original post by O133)
    This bill allows for research into hydrogen - which is perhaps more practical than electricity.
    Hydrogen right now in fuel form is about the same price as petrol after tax (granted it could fall), electricity right now to charge the same distance as you'd buy fuel for is about 25% of the cost. While i'd welcome a bill supporting more research, electric cars have a massive head start and are now at or below £20k.
 
 
 
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