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Stabiliser or rebate?

9th August 2012, Page 10
9th August 2012
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Which of the following most accurately describes the problem?

Which is best for the industry: a fuel duty stabiliser or an essential user rebate? July’s Trucking Britain Out Of Recession reveals all

By Justin Stanton

GIVEN THE SURPRISE present that the Treasury delivered earlier this summer, namely the U-turn on the planned fuel duty rise, what should the government do next to alleviate the burden on transport operators? That’s the question we posed in July’s Trucking Britain Out Of Recession survey.

We asked: if the government was to choose between a fuel duty stabiliser or an essential user rebate, which would you prefer? The answer was not quite as cut and dried as we expected it to be, especially once the detail is analysed.

About half (51%) want an essential user rebate, one ifth want the stabiliser, while nearly a sixth (14%) would be happy with either. However, analysis by size of leet shows that medium-sized and large leet operators are twice more likely to prefer the stabiliser over the rebate than small leet operators.

Hire and reward hauliers are overwhelmingly in favour of the rebate (58%) rather than the stabiliser (18%), but logistics and contract distribution irms are not so convinced of one option over the other: 35% want the stabiliser, while 29% want the rebate.

Is this because such irms make greater use of fuel price hedging and therefore consistency of fuel price is more important than sub

sequent inlow of rebate cash? One operator offered this answer: “A fuel stabiliser enables you to cost out quotes without having to adjust or make reservations to adjust should fuel increase/decrease.” Another noted: “A ixed cost of fuel is more acceptable for stable customer relations.” A stabiliser does exactly what it says on the tin and that’s clearly helpful for cashlow forecasts, according to one respondent. “We have to pay our fuel bills weekly, but we get paid in 30 days or 60 days and it is good to know there will not be massive luctuations causing cashlow issues.” Another added: “A stabiliser keeps everyone’s costs the same and there’s no additional red tape or forms to ill out.” One operator offered this observation: “We have never come up with a sensible plan for an essential user rebate. Both governments have wasted money trying to sort this out. We need transparency on fuel prices with a stable price so hauliers and customers can have stable prices.” Nearly half of own-account operators (40%) aren’t fussed which option is best, while the same number again prefer the rebate.

Other observations from further analysis include: operators involved in the construction industry would rather have the stabiliser than the rebate (58% versus 33%); operators involved in retail distribution are overwhelmingly in favour of the rebate (57% against 11% for the stabiliser); and the desire for a rebate is even greater among hauliers in the agriculture sector – 75% want it.

Those in favour of a rebate offered the following thoughts: “All freight and passenger vehicles, except trucks, get rebated fuel. Why not us as well?” “An essential user rebate would mean that the government would still receive the income from nonessential users, but would not suppress business. At present, the scheme works for coach companies, helping them to be competitive; haulage should get the same beneits.” “LGVs provide the economy with a strategic service. The cost of this must be uncoupled from the cost of private motoring if the British economy is to lourish, thus increasing the nation’s taxable wealth.”

We’ll inish this controversial debate for the moment with this detailed proposal: “Buses get 39% in every pound they spend back as a rebate. The rebates for trucks could be as follows: tippers 25%; lat beds on local work 25%; vans 25%; long-distance trucks 30%; others 25% only for business miles and only if they stick to the speed limit.” ■


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