Letter: Utility job cuts no harm to taxpayer

Share
Related Topics
Sir: David Blunkett's accusation that taxpayers have picked up the cost of job losses in the utilities ("Utility job cuts `cost taxpayers pounds 805m' ", 14 October) is unfounded.

While it is true that in the electricity industry staffing levels have been reduced, they have been done so largely through voluntary severance and early retirement packages. Such satisfactory settlements have meant these individuals have not needed to rely on state benefits. In fact many of them are paying income tax on their pensions.

At the same time the industry contribution to the Exchequer is considerable. Since 1990 the Government has received around pounds 24bn: sale proceeds from privatisation amounted to some pounds 15bn and currently the industry pays over pounds lbn per year in corporation tax. Last year alone the industry's annual VAT payment was pounds 2.5bn.

As with any commercial business, it is not appropriate to employ more people than is necessary. One of the results of such increasing efficiency is the falling cost of electricity to all customers. Domestic prices are now 11 per cent less than six years ago, after allowing for inflation. Industrial prices under contract are as much as 16 per cent cheaper in real terms than in January 1994.

PHILIP DAUBENEY

Chief Executive

Electricity Association

London SW1

React Now

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
iJobs Job Widget
iJobs General

Ashdown Group: Management Accountant - North West London, £35-40k

£35000 - £40000 per annum: Ashdown Group: Management Accountant (ACCA / CIMA, ...

Recruitment Genius: Female Care Team

£11 - £12 per hour: Recruitment Genius: A 10 year old girl who has profound an...

Ashdown Group: Marketing Manager - Manchester - Urgent Requirement!

£30000 - £35000 per annum + 20 days holidays & pension: Ashdown Group: Marketi...

Recruitment Genius: Business Development Manager

£35000 - £45000 per annum: Recruitment Genius: A Business Development Manager ...

Day In a Page

Read Next
 

Mr Osborne’s Economic Experiment: William Keegan’s new book

John Rentoul
EastEnders needs to review its take on Cockney life  

Ending the watershed is crossing the line of our TV culture

Jane Merrick
Greece elections: In times like these, the EU has far more dangerous adversaries than Syriza

Greece elections

In times like these, the EU has far more dangerous adversaries than Syriza, says Patrick Cockburn
Holocaust Memorial Day: Nazi victims remembered as spectre of prejudice reappears

Holocaust Memorial Day

Nazi victims remembered as spectre of prejudice reappears over Europe
Fortitude and the Arctic attraction: Our fascination with the last great wilderness

Magnetic north

The Arctic has always exerted a pull, from Greek myth to new thriller Fortitude. Gerard Gilbert considers what's behind our fascination with the last great wilderness
Homeless Veterans appeal: Homeless in Wales can find inspiration from Daniel’s story

Homeless Veterans appeal

Homeless in Wales can find inspiration from Daniel’s story
Front National family feud? Marine Le Pen and her relatives clash over French far-right party's response to Paris terror attacks

Front National family feud?

Marine Le Pen and her relatives clash over French far-right party's response to Paris terror attacks
Pot of gold: tasting the world’s most expensive tea

Pot of gold

Tasting the world’s most expensive tea
10 best wildlife-watching experiences: From hen harriers to porpoises

From hen harriers to porpoises: 10 best wildlife-watching experiences

While many of Britain's birds have flown south for the winter, it's still a great time to get outside for a spot of twitching
Nick Easter: 'I don’t want just to hold tackle bags, I want to be out there'

'I don’t want just to hold tackle bags, I want to be out there'

Nick Easter targeting World Cup place after England recall
DSK, Dodo the Pimp, and the Carlton Hotel

The inside track on France's trial of the year

Dominique Strauss-Kahn, Dodo the Pimp, and the Carlton Hotel:
As provocative now as they ever were

Sarah Kane season

Why her plays are as provocative now as when they were written
Murder of Japanese hostage has grim echoes of a killing in Iraq 11 years ago

Murder of Japanese hostage has grim echoes of another killing

Japanese mood was against what was seen as irresponsible trips to a vicious war zone
Syria crisis: Celebrities call on David Cameron to take more refugees as one young mother tells of torture by Assad regime

Celebrities call on David Cameron to take more Syrian refugees

One young mother tells of torture by Assad regime
The enemy within: People who hear voices in their heads are being encouraged to talk back – with promising results

The enemy within

People who hear voices in their heads are being encouraged to talk back
'In Auschwitz you got used to anything'

'In Auschwitz you got used to anything'

Survivors of the Nazi concentration camp remember its horror, 70 years on
Autumn/winter menswear 2015: The uniforms that make up modern life come to the fore

Autumn/winter menswear 2015

The uniforms that make up modern life come to the fore