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11 RIF: Use it or lose it
Page 14
Page 15
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CM EXCLUSIVE • The Road Haulage Modernisation Fund. Not a particularly snappy title, even for a government initiative. Not a very wellknown initiative either, even among those it was supposed to benefit. And, as a consequence, it has not been a roaring success.
Underused funds
By the time the fund is closed next April, some are estimating that only half of the 1100m available will have been spent ( CM1218 June). In other words, £.50m intended to help hauliers will have stayed in the Treasury because it has been unclaimed. For an industry which often moans that it is unsupported by the government, this figure is remarkable.
So why is the fund so underused? It seems that a complete lack of awareness is one of the key reasons. In a random survey of hauliers across England undertaken by CM this week, only a paltry 2% even recognised the name of the fund. Among the minority who had heard of it, most had only a vague idea of what it was for. Only one haulier surveyed had applied for any funds or advice. He didn't know how to access it, but had been approached by the Freight Transport Association.
While it is clear that most hauhers simply don't realise the fund is there, the reasons for their ignorance are harder to pinpoint.
One factor is that it does seem particularly hard to make hauliers aware of grants. When we asked whether hauliers thought the fund should be given more publicity, and if so where, many suggested that the trade associations would be the ideal source of information. This is likely to be a frustrating finding for the FTA and the Road Haulage Association—both of which have put some effort into publicising aspects of the fund.
Ray English from County Durham-based APW Transport, who has a meeting about the fund next week, says that, ironically, it was the FTA that contacted him about the scheme even though he is an RHA member: "Both bodies should be doing more to raise awareness among their members about such initiatives," he adds.
Discouraging factor
But the fact that the FTA and the RHA are only dealing with some parts of the fund might also explain the ignorance and confusion. As our panel shows (see opposite page), there is no helpful general telephone line to ring to explain how to take advantage of what the fund offers. Hauliers have to first decide which part of the scheme they wish to apply for and approach whichever organisation is running that part of the fund.
Suspicion of red tape and distrust of all things governmental is another discouraging factor. Many hauliers shared the view of Phil Benham, owner of Phil Benham Heavy Haulage in Marlborough, Wiltshire. Benham is one of the minority who has heard of the fund ("vaguely", he says) but had no wish to find out more.
"I steer clear of government plans because of the red tape. I don't trust government initiatives and they always seem to be more hassle than they are worth," he says.
Tony Parks from Ninfieldbased Tony Parks Transport agrees: "It takes so long to try to claim anything off of the government: you spend hours filling out the paperwork and are then told a blunt 'no'.
"It would have been nice to know about the scheme though. I expect it was kept quiet because the government wants to keep the £50m in its coffers."
In general, owner-drivers appeared to rule themselves out of contention for the fund on the grounds that they have no need for anything it offers, perhaps a reflection of the strident independence of the owner-driver.
Ringfenced money
"My driving is the best on the road and my vehicle is clean, modern and well-maintained. I got some publicity about this but I just filed it away.
"I don't think it is for a small owner-driver like me," says Jim Taylor of Jim Taylor Transport Services.
But it seems there is some hope for the scheme-95% of the hauliers we surveyed felt the 150m remaining should be rolled over when the three-year scheme comes to an end next April. This is likely to help the FTA and RHA in their pleas to government to have the fund rolled over (CM12-18 June). But in a letter to RHA chief executive Roger King, transport minister John Speller (who has since been reshuffled to the Northern Ireland office) warns that the only way to achieve that is for hauliers to actually use the fund.
He writes: "The Fund was announced as a three-year, ringfenced fund and subject to take-up by the industry As such, there will be no balance available for reallocation.
"However, all the English schemes under the fund will be evaluated when the fund in England finishes at the end of the current financial year, and decisions taken on whether there is
justification to extend any of them separately.
"More than ever this points up the need for the industry to take advantage of what is available now, and to show real commitment to those schemes it might wish to see extended." It seems the message is: this money is yours. Use or lose it...