Why should the price of a mooring vary with the cost of running the
  mooring?

  That simply isn't how the market works.

  That price will depend on supply and demand. At present, demand
  exceeds supply, so the price will go up (and is doing so in most
  places, I believe).

  I would expect that to be the basis of BW's defence in any Ombudsman
  complaint. And I would expect BW to be successful.

Adrian

The flaws of the market have been known for decades and were fluently 
expressed in Hardin's 1950s paper 'The Tragedy of the Commons'. Hardin's 
point was that where there was a 'Common' - a good which all benefited 
from but no-one owned - without some regulation for the common good, the 
market would ensure that the resource was destroyed. Examples are 
fisheries policy and climate change, where attempts are now belatedly 
being made to ensure that the market does not destroy the food and 
survival of all. Two current spectacular failures in national transport 
policy are air travel (where the market ensures fares do not reflect 
their environmental cost) and rail travel (where the market ensures that 
fares are pitched so high that car travel is a cheaper choice despite 
its environmental costs). The difference is that the demand for holiday 
travel is 'elastic' (people will travel more if they can afford it) but 
the demand for travel to work is 'inelastic' (people have to get to 
work). The moorings market has a high 'hysteresis' (lag in responding to 
pressures) because of the capital tied up in boats - at present people 
will pay what they have to moor the boats they have bought but this 
assumes boats will hold their value. Especially in the case of historic 
boats, with high metal prices, their scrap value may exceed their resale 
value.

The issue for the waterways is whether they are seen as a 'Common', i.e. 
whether all benefit from access to them and their history, or whether 
the destruction of a system, which could have benefited all, by the 
market should be accepted, in the way which has occurred for fisheries, 
climate and transport. Specifically, I do not feel that Adrian, as a 
Canadian, should be speaking for the interests of market forces in the 
UK waterways, at a time when the Spanish owners of BAA appear to be 
subordinating the UK national interest in favour of their own 
market-driven cashflow. The history of whaling shows that, where a 
resource grows slower than market interest rates, the market favours 
destroying the resource and investing the profits elsewhere. BAA and BW 
executives will probably move on once they have taken their profits and 
destroyed the resource.

Sean 


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