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COMMENT

12th October 2000
Page 8
Page 8, 12th October 2000 — COMMENT
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Which of the following most accurately describes the problem?

Chasing rainbows

Just over 30 days until the 6o-day deadline, and still deadlock. The government still refuses to acknowledge the deadline—though it will have to if the country grinds to a halt again in a month's time.

The FTA continues to suggest the protests were counter-productive, despite their media success. The RHA, roundly criticised for apparently abandoning the essential user rebate (EUR), now appears to have restored it as policy while continuing to call for an across-the-board reduction in prices. In addition other groups, spokesmen, forums and loyalties continue to emerge. And in the middle sits the haulier, his loyalties understandably torn between the nationwide movements against taxation and his own interest in an EUR.

The RHA suggests that both are still achievable. But could a nationwide fuel price reductiOn of any sort—a major victory in itself—realistically be followed by a further rebate scheme for hauliers? Or vice versa? We doubt it With the government focused primarily on the mass electorate, it may indeed find some face-saving means by which to grant a nationwide reduction, despite its current stance. But only a cut of about 3op will stop hauliers facing far higher costs than their European counterparts. Wasn't that the whole point of their campaign?

The news that yet another forum is being established to discuss the price of fuel—this time a forum of government ministers from EU member states who will look at unification of fuel taxes across Europe—may ultimately prove far more valuable in resurrecting the British competitiveness we so desperately need...assuming it doesn't simply set out to raise taxes in other member states to UK levels.

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Organisations: European Union