'From 1 July continental hauliers will be able to exploit
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their lower costs' Many readers will already be aware of the actions taken by the TransAction group. This group was formed by 20 Kent-based hauliers immediately after the 5.5 pence-per-litre increase on diesel in the last Budget. This, and the lifting of cabotage restrictions on 1 July, was the final nail in our coffin. We decided enough was enough! Doesn't the Government realise that from 1 July continental hauliers will be able to exploit their lower cost levels on fuel and excise duty to compete with hauliers in the UK? Vehicles taxed and fuelled across the Channel will have an annual advantage of £11,000 over a British-based vehicle, which amounts to 12% of operating costs for a vehicle travelling 90,000 miles a year. If this situation is allowed to continue, more hauliers will go to the wall causing more unemployment—to the tune of 22,000 by the end of this parliamentary term. And over the same period the UK Government will lose £800 million in duties from fuel being purchased abroad and the GDP would reduce by £1 billion. I understand the Government's environmental policy for reducing carbon dioxide emissions, but does the Chancellor believe exhaust fumes from French, Dutch, or German lorries is less harmful than British emissions? No—it's just cheaper! Minister for roads Baroness Hayman said in a letter to Gwyn Prosser, MP for Dover, Kent: "Higher fuel taxes will not adversely affect British industry's overall competitiveness, as transport costs are only a relatively small part of the total business cost of most industries. Road fuel cost represents a greater proportion of total business cost for road hauliers than most other industries".
Well thank you Baroness Hayman for that piece of mind-blowing incorrect information. When you eventually come back with the rest of the ministers from the planet you are on, you will realise that food, raw materials, steel, car parts, bricks, waste disposal, and so on are moved around by hauliers. In reality 99% of all goods at some stage are moved by a lorry and as you point out correctly, fuel costs represent a greater proportion of business costs for hauliers than any other industry. This, coupled with all the other costs of running transport, makes it appear that profit in the road haulage industry is a dirty word.
The Road Haulage Association has produced a proposal to solve the problem in the shape of the "essential user" rebate, similar to the system already in place for bus operators. This will remove the effect of unfair competition from foreign operators, maintain British jobs and maintain the tax income to the Treasury. However, convincing Government to adopt change is a slow process and we cannot achieve this before 1 July. We need action now so the Government realises those whose jobs are affected will reflect their situation in the way they vote in the next election. All hauliers worried about the future of our industry should join Trans-Action NOW. For more details fax: 01795 662010.
• If you want to sound off about a road transport issue write to features editor Patric Cunnane or fax your views (up to 600 words) to Nicky Clarke on 0181 652 8912.