GUARANTEED INFLATION
Page 3
If you've noticed an error in this article please click here to report it so we can fix it.
• The Government really ought to make up its mind. Either it's committed to curbing inflation, or it isn't. Judging by the proposed 140% hike in 0-licence fees from the Department of Transport (see headline news, page 4-5) it seems that it isn't.
The DOT justifies the rocketing fees by saying that the downturn in demand for 0-licences over ihe past two years has meant that administration and enforcement costs are running at a deficit.
That's rich. First the Government cocks up the economy and puts hundreds of operators out of business. Then it wants to clobber the survivors with increased 0-licence fees in order to cover any shortfall in its own administrative costs, The Yiddish term "chutzpah" comes to mind.
Figures show that the present charge of 270 doesn't go anywhere near covering the Traffic Areas' processing costs, estimated to be about 230 per application.
This either means that for years the industry has been getting away without paying full whack for the administration of the 0-licence system — or that the admin costs of the Traffic Areas need to be reduced. Which is it? It also begs a question: When the Government finally manages to revive the economy and there are more hauliers around to share the cost, will the licensing fee be reduced?
What makes the rise particularly galling is that it comes at a time when late payment problems are getting worse.
Credit insurance group Trade Indeminity says the average waiting time for payment is now 26 days. We've got news for TI; there are plenty of hauliers who'd give their right arm to get paid within 26 days. If only hauliers could apply the same payment terms on 0-licence applications that their customers apply to them ...