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Leading Article: The price of addiction

Friday, 13 June 2008

It is commonly assumed that the days when Britain could be held hostage by the labour unions are behind us. The current industrial dispute between the Shell oil company and its hauliers illustrates the complacency of this analysis.

It is true that a strike by most professions will no longer bring economic activity to a halt. But when it comes to the fuel delivery sector, the effects of industrial action can be more drastic than ever. The legislation and privatisations of the 1980s broke the ability of unions to wreak economic havoc. But there are no such simple weapons in the Government's armoury today when it comes to fuel. Our economy is simply too heavily reliant on petroleum for that. Even the most minor disruption in the supply chain can cause dislocation, even panic.

It is not merely industrial action by tanker drivers, of the sort that begins today, which has the potential to cause disruption. The blockade of fuel depots by hauliers in 2000 prompted a run on petrol stations. There was a scare in Scotland in April when workers at the Grangemouth oil refinery went on strike.

Governments can stockpile fuel and urge consumers not to panic-buy, but the only viable long-term solution is for ministers to begin the difficult process of weaning our economy off its total dependence on fossil fuels for power.

We will only free ourselves from threats from the supply end of the fossil fuel industry, when we substantially curb our demand for what they are selling.

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