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German transit toll ; not wanted

10th November 1988
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Page 4, 10th November 1988 — German transit toll ; not wanted
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Which of the following most accurately describes the problem?

• West Germany's decision this week to tax lorries using its national road system has been attacked by international operators and haulage associations as disastrous for the liberalisation of the EEC road transport industry.

The Germans believe that after 1992, their highly protected industry will lose business and that other countries will take free advantage of the country's Autobahn network.

"The purpose of the German move is to force the European Commission to take action on the harmonisation of taxes," says the Road Haulage Asso ciation's international executive Bob Duffy. "They say they provide so much infrastructure but get nothing in return."

Nor do the British, says Dave Salter, transport manager at Martintnuc, which does much of its business in Germany. "It just amazes me that we don't charge the Europeans for using our roads. If the Germans get away with this, we must impose our own tax." This lit-for-tat sentiment is echoed by Plane Trucking manager Chris Phillips and John Quirk, general manager at Swains of Stretton. It seems that British hauliers' patience with European co-operation h run out if it means the meek acceptance of unilateral actior by other member states.

The Freight Transport Ass ciation has reacted fiercely to Bonn's move. "We are appall. at the prospect. It appears to be discriminatory and as such will contravene EEC laws," says the association's international expert Dave Green. "It is an attempt to insulate the German haulage industry fron free competition."

The case will almost certail ly go to the European Court Justice. Holland's transport minister, Nelie Smit-Kroes, warned this week that: "This anti-European measure is unacceptable to the Dutch government." Smit-Kroes lashed the hypocrisy of German tran port minister Jiirgen Warnke, who last year protested again a similar Belgian plan.

Dutch hauliers are also plar ning legal moves; they are threatening to circumvent the charges by registering their lorries in Germany.

The tax, which is due to come into effect from 1 Janua 1990, would be levied only or lorries and would apply to all roads, not just motorways. Warlike claims the tax is not discriminatory as it will be levied on German and foreign lorries alike. The money paid by the Germans, however, w deducted from their national :nces.

he charge will be levied ording to vehicle weight and number of axles. Warlike . proposed a windscreen :ker (called a "vignette") tern valid for days, months years. He claims this will add to frontier delays and t paperwork will be kept to finimum.

[he tax — which could raise .ut 2525 million — will rein in force until the end of G, when the Germans hope t a Community-wide system pad usage payment will be ilace.

iustria already has a general d usage tax, but Germany is r bigger fish. Some of the / now being directed at Bonn sterns from the complete lack of warning or consultation with other countries. EEC transport commissioner Stanley Clinton-Davis says he is "astonished" that he got no advance notice of the tax and fears the move will endanger the whole idea of a harmonised market.

Hauliers will want to use toll roads, if they cut costs and journey time, says Transport Secretary Paul Channon.

Speaking at an Adam Smith Institute seminar last week, Channon said the mere mention of tolls fills some people with horror, "but I believe this is a Pavlovian response from those who have been conditioned into accepting the notion that the state must provide," he said.