Examination of Witnesses (Questions 160)
MR TIM
HELWEG-LARSEN,
MR PAUL
ALLEN AND
DR DAVID
FLEMING
17 JULY 2007
Q160 Martin Horwood: Why weekly allowances?
Dr Fleming: Weekly works with
the existing tender system and it seems to me that the smoother
one can make it, the better. If one had monthly, there would be
a certain ten per cent or more than ten per cent adjustment in
the total float or variation in the total float because one year's
supply of units put on the market on day one of the scheme, and
then at the end of one month there will be only 11 months' supply,
which will begin to affect the price a little bit, whereas if
you have it weekly, the increment will have no effect on the market.
It is just the smoothest way of doing it. One advantage of it
being weekly is that the scheme is hands-free. People think, "Oh
gosh, people are going to have their carbon calculations and their
card." Actually, most people will not even notice the scheme
exists from the point of view of messing around with cards and
bits of paper. It is all done with direct debit and direct credit
and things like that. There has been a lot of excitement about
the paperwork and the decision making. With a hands-free scheme
like this, everybody, no matter what condition, they may have
Alzheimer's or be in a long-term care home, it actually works
for everybody without condition and, under those circumstances,
the weekly issue is no hassle at all.
Chairman: Thank you very much. I am sure
we could spend the whole day discussing this extremely interesting
subject. We are very grateful to you for coming in and shedding
a little more light on your own ideas.
|
