Industry's tax plea to Chancellor
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A BARRAGE of pre-Budget pleas to the Chancellor of the Exchequer, Mr Denis Healey, not to increase taxation for hauliers has been fired by the Road Haulage Association and the Freight Transport Association.
Both groups warn the Chancellor that increased taxation would add fuel to inflation at a time when efforts are being made to control it.
RHA director-general Mr George Newman has told the Chancellor that even if he canmot see ways to reduce the tax burden on hauliers then at least he should not Increase it.
He warns that any increased taxation would put the recovery of the industry into jeopardy : "To increase vehicle or fuel taxation at such a time would undoubtedly jeopardise the recovery of road haulage undertakings and so adversely affect the condition of the economy as a whole."
The FTA urged Mr Healey not to make further cuts in the money available for roads. They also say that in the sand, gravel and quarrying industries transport costs account for half the product cost and any increase in taxation would have a marked effect on house prices.
They warn the Chancellor that while there is not necessarily a direct link between the funds available for transport investment and those for subsidies, " It must be true that the high level of subsidies reacts on the funds available for investment."