CBI joins dery fight
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THE CONFEDERATION of British Industry is adding its weight to the industry's campaign against the increase in duty on derv.
At its council meeting last week, the CBI endorsed a transport policy committee decision to support the Freight Transport Association and Road Haulage Association in lobbying local MPs to try to alter the Government's plans.
This runs counter to the CBI's overall policy which is not to oppose the Finance Bill.
Lobbying of MPs has already begun to bear fruit, if last week's proceedings in the House of Commons are a fair measure.
There would be a greater willingness to accept increased petrol duties if the burden was not imposed through dery increases, claimed Roger Moate (Tory, Faversham).
However, the Finance Bill, giving effect to the Budget proposals, was approved and now goes forward for detailed consideration.
Chief Secretary to the Treasury Leon Brittan accepted that the fuel duty increases were bound to be unpopular but said they were necessary to achieve the Government's objective of reducing inflation rates.
Donald Stewart (Scottish Nationalist, Western Isles) claimed that the tax on dery would cost £92,000 in his constituency, while the Leeds Chamber of Commerce had esti mated that the increase in dery tax would increase haulage costs by about four per cent according to Ken Woolmer (Labour, Batley and Morley).
Even before the Budget, Britain had the highest price of dery of any Common Market member state, said Richard Wainwright (Liberal, Colne Valley). He could see no justification for any increase.