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148 
P EUROPEAN UNION
Page 8
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Guess what? New EU states enjoy lower operating costs
By David Harris THE STATISTICAL office of the European Union (EU) has revealed what most UK operators have long suspected namely that hauliers in the 10 new member states have staff costs that are up to SO% lower than those of the older EU countries.
Eurostat's report reveals that before 2004, when the new states joined, average annual staff costs in the EU ranged from €16,000 (J13,500) to €43.000 (L36,300).
New members, on the other hand, all have costs of less than €10,000 (E2,400) per year, with the exception of Cyprus. Other differences include the relative average age of trucks Before 2004. the majority of trucks operating were less than five years old, but Eurostat says that the new member states are far less likely to be operating new vehicles.
Eurostat's report, though, does give these differences a positive spin, saying that they have led to the "emergence of new very effective competitors in European freight transport-.
Polish hauliers have snapped up the biggest share of international work, carrying 17% of cross-border trade in 2006, the latest year for which figures are available.
However, UK hauliers are less enthusiastic about the impact of the new states.
Peter Cullum, head of international affairs for the Road Haulage Association (RHA), says the association "doesn't mind competition, but we would like a level playing field".
He adds that the problem is made worse due to some countries having stricter rules and tougher enforcement than others.
The chief economist at the Freight Transport Association (FTA), Simon Chapman, agrees: "We don't have a problem with market liberalisation, but it doesn't work without tax parity and without the same enforcement standards across Europe.
"It falls down if some have substandard vehicles, being driven on much cheaper fuel, by drivers that break the hours rules."