I dont read daily papers much but in the last 3 days I hear/read that there is a fuel crisis. Im glad to hear it in a way because I seem to be spending more on fuel in a week than I do on food ,so glad its not just me. How helpful it would be to local food production etc if Highlands and Islands / crofting counties could recieve a rural fuel subsidy . Norway or parts of it seem to have one [but they can do their own thing] any other European countries have this?

Basic problem is state aids rulings within EU as continuing support is seen as a market distortion. We could argue geography distorts markets but no one has had the nerve to do that yet.

Within Europe they get round it by maintaning a national fuel company . This is specifically about electricity but the NFC can buy resources from the private sector (coal, oil, gas etc) and charge what is a reasonable rate for regional govenment priorities. They always make a loss and the government bridges the gap in annual finances . How this is auditted and how it gets past State Aids I have not figured out yet.

In GB we pay a winter fuel allowance as a one off payment to individuals - whether they need it or not >? In europe they support a company who support those eleigible with differential tarriffs- so the aged - rural businesses - crofters/farmers can qualify on regional basis and I think it is via a card type scheme which contains your basic business details.

Hope that helps the debate.

Rgds
Hughie

A friend of mine from south of Derry told me that he was speaking to a local farmer in their equivalent of Harbro the other week who told him that the price for a bag of artificial fertiliser for his potato crop had more than doubled in the last year - from £12 last year to £24.95 this year.

He put it down to two factors, growing oil prices and growing demand from China.

I recently watched a film called ‘A Crude Awakening’ about peak oil and its consequences, which was very sobering viewing, and certainly resonates with these sudden price hikes.

I wonder if this thread, or another, could be used for examples, in a Highlands and Islands context, of increases like these, which might suggest that the economic problems which will face rural areas will be across the board.

Iain

(PS - glad to have joined the SCF forum - more power to it!!)

Iain
The fertilizer problem has been growing for some time. We are currently more than double last years costs. Fortunately we do not use a lot and it is only used to boost the really marginal fringes. However it is significant if we want to develop the possibilities of sustainable livestock keeping and producing as much of the winter keep as possible without denuding the environment.
The macro economic problems of China are two edged. Many people I have talked to (beef sector) recognise the huge and growing demand as China adopts a western diet. The opportunity for Brazil, Argentina and USA to fill that market leaves more opportunity at home for our higher spec products. We need to get better at what we do and be ready to take these opportunities when they arise - iun the meantime we need to hang on until 2013 and see what CAP brings then. It could be a totally different picture by then.
Rgds
Hughie

The only chose we have is to find alternative sources for our energy

At least there’s no ecology tax added to oil like in Germany. If you think fuel is expensive here, check out their prices. Anyhow, there definitely is a crisis going on and its worldwide. Disasters like the BP oil rig in the Gulf are just constant reminders of this crisis.

I dont know why the fuel is getting more higher price..

If there is a fuel crisis I do really hope that they will find a way for this.