Kinnock supports fuel tax campaign
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by Charles Young • European Transport Corn. missioner Neil Kinnock has thrown his weight behind the UK haulage industry's campaign for reductions in fuel tax and VED rates.
At the Confederation of British Industry's National Conference last week, Kinnock joined John Allan, chairman of the CBI's transport policy committee, in calling for lower taxes on haulage. A reduction in rates is in line with the Commission's plan to harmonise taxes across all EU member states.
Kinnock also stressed the cost of road congestion to businesses and the need to reduce this through: • The development of infrastructure, telernatics and public transport; • The development of the railfreight infrastructure; • The introduction of a roadpricing system.
"Britain's congestion bill is more than £20bn a year and ris• jag,' said Kinnock, "...and congestion is partly caused by the fact that a third of the trucks on Europe's roads are running empty...about 37 billion miles a year are now travelled by empty trucks."
Road pricing has a vital contribution to make, he said, providing there is "a differentiation of charges according to time, place, condition of travel and vehicle characteristics?'
He added that railfreight's role in alleviating congestion depended on it being a faster and cheaper service.
Transport Minister John Reid said that although hauliers pay higher fuel and vehicle duties than their counterparts on the Continent, they benefit from lower taxes and social costs.