There is an article in Euro2Day which details an initiative by the Greek governmentto help the transport industry.
Let us a take a moment to look at the governments’ track record to assess if they have anything to bring to the table.
1. The most obvious thing that the Greek government has done over the past 5 years is to double the price of fuel. This on its own is easily the most destructive thing that the Greek government could have done to the transport industry in Greece at all levels.
There is nothing that the government can do that can overcome the damage they have done by imposing such high taxes.
2. The government has the power to compel people to pay it money through taxes. The Greek government also has the power to set the price that people pay.
And yet despite this power the Greek government is still unable to spend the same or less than it takes in.
To put it another way, if there were a private business that could set its own prices, that could compel people to buy its products or services and despite this power still went bankrupt, society would quite rightly label the management utterly competent at best.
3. Road tolls. The Greek government is imposing road tools on all major transport arteries in the country. Is some areas the road tolls cost the same as the fuel over the same distance.
So what is the point I am driving at here?
In short, the government through fuel duty increases, the second biggest cost for any transport company, has reaped more damage on the Greek transport industry than they can ever hope to overcome with any initiatives.
The fact that they are rapidly expanding the number of road tolls on the main roads in Greece is further increasing transport costs.
Couple this with the fact that the Greek government has proved itself to be totally inept when it comes to financial matters any initiatives they come up with are bound to be a waste of taxpayer money.
For the Greek government to announce an initiative to help the Greek logistics industry is an insult to Greek transport industry and an insult to the Greek taxpayer who will be funding yet more follies.
It is very easy for the Greek government to improvement the efficiency of the Greek transport industry.
The first is to reduce fuel duty to zero and second to eliminate roads tolls and the third is to eliminate all regulation connected to the transport industry. These three measures would make the Greek transport industry the most efficient in the world.
It is very easy for the government to make the Greek transport industry more effective and that is for the Greek government to cease its involvement in the industry completely.