BHA dumps industry rebate, calling for tax cuts for all
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r by Melanie Hammond
The Road Haulage Association has effectively dumped its campaign for an essential user rebate (EUR) on fuel and joined grass-roots protesters in their demand for an across-the-board tax cut of around 30p/lit.
The move has dismayed many hauliers who believe a reduction for hauliers, and possibly farmers, is the only concession the government can afford.
Freight Transport Association director-general David Green says: "Frankly, I don't think that it's the right answer" The change in policy was announced last week by RHA national chairman John Bridge following a meeting between transport ministers and the newly formed Fuel Forum which was set up with the co-operation of the RHA to represent the views of protesters (see analysis, page 8).
Bridge says: "Personally. I think this is the way forward. Circumstances have changed and we have to take into account that there are several other groups— farmers, people in rural areas, taxi drivers—equally disadvantaged. The government was getting into long and protracted negotiations over how an essential user rebate would work but what we need now is swift and immediate action."
Even if the RHA's official line is to stick with the EUR this argument is bound to have been undermined because Bridge and chief executive Roger King have already joined protesters asking ministers for an across-the-board cut.
King says: "To a degree, there is a slight conflict here (between the strategy of the RHA and the Fuel Forum) but whatever the solution we all want a reduction in fuel duty in line with the average in Europe."
The Fuel Forum has not put a figure on the reduction it is seeking. King says: "It's something in the order of 30p, but we haven't said we want it all in one go. If the government was to make a commitment to reach that over a few years it would be a start."
The RHA Board will decide today (Thursday I whether to officially drop its campaign for a rebate for haulers and go along with an across-the-board reduction in fuel duty. This would be a dramatic shift in policy—only three weeks age, the RHA launched its "hauliers' manifesto' which heralded the EUR as the RHA solution.
Lords Macdonald and Whitty have promised to get back to representatives of the Fuel Forum within two weeks. "I doubt they are going to come back and say you've got 10p/lit off fuel but they should be coming back to us on the issue of disparity in bulk fuel prices across Europe," says King.
Frank Stears, Trans-Action's representative on the Fuel Forum, says: "If he doesn't come back with a date for proper talks within a fortnight we'll have to decide what to do. I've already had big hauliers on the phone apologising for not doing enough."
• John Bridge has reconsidered his resignation from the Government's Road Haulage Forum. Bridge says: "The fuel issue has been brought to the fore recently and several people have asked me to reconsider. Now is not the time, but I still reserve my right to resign fl feel the Forum is not making progress."