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WHY ARE WE WAITING?

27th January 1994
Page 21
Page 21, 27th January 1994 — WHY ARE WE WAITING?
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Which of the following most accurately describes the problem?

Milk industry hauliers probably thought they were in for a bonanza following the Government's decision to scrap the Milk Marketing Board's monopoly and open up the industry to free competition.

But agriculture minister Gillian Shephard's dithering over exactly when the MMB will hand over its assets to the new outfit, Milk Marque, has probably blown it for the hauliers.

With the Ministry of Agriculture, Fisheries and Food dragging its feet, farmers have had plenty of time to think about how their milk is transported, look into vehicle leasing arrangements and decide that they can probably do it cheaper themselves. And before you dismiss the idea of farm ers branching out into haulage, read on. We have a report in this issue of farmers from Devon and Wales thinking of doing just that (see page 3). Existing milk hauliers, and any others with an eye to creaming off a tidy profit, are about to discover that they will be undercut by their country cousins in the farming business. No doubt the farmers will fight to tax their vehicles as agricultural machines and run them on red diesel. If they can—and the National Farmers' Union seems to regard this as a possibility, no road haulage company could match their rates for long— hauliers are already facing dire rates and increased dery prices. Shephard was probably right to take another look at the plans to hand the MMB's assets over to Milk Marque. A lot of people have condemned them as uncompetitive. But this week's meeting between the Ministry and the Milk Marketing Board will, with any luck, have removed the last stumbling block. That being the case, perhaps Mrs Shephard could agree a date for the launch of Milk Marque which will open up the haulage market (known as vesting day), and sign on the dotted line. The MMB has set 1 November as its new target date. That gives Mrs Shephard and her civil servants nine months to come up with a business plan. Nine months might not seem a long time in the dreaming towers of Whitehall; hauliers have to take deadlines rather more seriously. It's the sort of logistics plan that a competent haulier would be expected to sort out over a weekend.

Please, Mrs Shephard, make you mind up and give hauliers the chance to salvage what is left of this fast disappearing opportunity.


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