... they are an utter waste of time.
Agreed.
Here is one of my favourites (I'll give a brief outline of the topic too as it isn't railway related):
Student loans after 1998 have always had interest charged at the rate of the previous March's Retail Price Index (
RPI▸ ) (not a Revenue Protection Inspector, I hasten to add!)
There was a petition in 2007 asking for loans to follow the
Consumer Price IndexThis was part of the government's response:
Viewed over a period of several years, the student loan interest rate will be equivalent to the rate of inflation; but with a time lag. To ensure that this remains the case we need to use the same measure of inflation consistently over time.
In 2008/2009, the government decided they would lower the interest rate to follow the average of 5 bank's base rates + 1%. This was so that the Consumer Credit Act wouldn't apply to the loans (and therefore they wouldn't need to be regulated by the FSA or have complaints dealt with by the Financial Ombudsman).
March's RPI was -0.4% so the interest rate was fixed at 0%, contrary to what was in the petition above.
So a
new petition was created.
Government's response:
There are two options for establishing the interest rate for income contingent repayment (ICR) loans. The first is to use Retail Prices Index (RPI), or the bank base rate, whichever is lower . There is also a low interest cap linked to that option, which means that the loan interest rate can be cut in-year, when the base rate plus 1% across a group of banks, is lower than RPI, as happened in December 2008 for the first time. The second option is for the Secretary of State not to set an interest rate. The Government decided not to apply an interest rate for the academic year commencing 1 September 2009, which effectively means the rate will be 0%.
Hang on a minute, that wasn't what they were saying back in 2007.
Just goes to show that the government take no notice of these petitions.