Tories no to tax rises
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WHEN he addressed the NTDA in London last week Mr Norman Fowler, MP, came out strongly against any compulsory switch of traffic from road to rail either through legislation or pricing.
He reminded the meeting that the Government was considering raising fuel tax for road vehicles and increasing road fund tax. "The theory is that such a step would encourage goods to go by rail. The reality is very different," he said.
He warned that any move in this direction would result in immediate price increases because already the road haulage industry was working at desperately low profit margins.
Mr Fowler said that the folly of the theory was that price increases to road transport would not and indeed could not result in a switch to rail since much of the road-borne traffic was unsuited to the railway system.