• With a general election looming, the Chancellor, Gordon Brown,
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was never likely to do anything that would raise the spectre of more fuel blockades. But opinion is divided as to whether his Budget demonstrates a genuine commitment to tackling the industry's deeprooted problems.
The Road Haulage and Freight Transport Associations believe it does, but there's widespread scepticism at more grassroots levels.
John Bridge, national chairman of the RHA, says the Budget was historic because duty on diesel was not just frozen but actually reduced: ultra-low-sulphur diesel was cut by 3p/lit.
"The fundamental principle that has been conceded to our industry is a very large step in the right direction, even though the amount is small," he adds.
Brown also confirmed that the existing 100 or so Vehicle Excise Duty rates for trucks are being reduced to seven, saving hauliers about £300m a year.
But FIA economist Simon Chapman says the significance of the Budget goes much deeper than reductions in fuel and VED costs. "There's a recognition of the need to make progress on the skills issue and the problem of illegal cowboys. Rome wasn't built in a day, and these are problems that will take time to sort out" Of the £100m fund set up to modernise the industry, £15m will be spent on providing free advice to hauliers on improving their fuel efficiency. Transport minister Lord Macdonald says this will help companies cut their fuel bills by up to 10%. A further £30m will go on grants for fitting emissions reduction technology, helping operators to qualify for VED discounts of up to £500.
However, Chapman is disappointed that the Budget has done nothing to encourage hauliers to invest in new vehicles by increasing their capital allowances against tax. "Apart from being good practice, it's a telling way that operators can make progress towards environmental improvement," he says.
Ron Webb, national road
transport secretary for the Transport 8,, General Workers' Union, has just one quibble, which concerns the £5m allocated to enhance the industry's training and recruitment needs. "It's one area I think he needs to invest more money in. Training new entrants is one of the biggest issues facing the industry," he says.
Intervention
This criticism is echoed by Ian Hetherington of the Road Haulage and Distribution Training Council. He says the amount is broadly in line with proposals by a sub-group of the Road Haulage Forum, "but given the importance of the skills shortage in the industry it's a very modest intervention in a very significant problem".
Even though the responses from the trade associations have generally been positive, elsewhere there is widespread scepticism about the government's commitment to solving the industry's problems.
Paul Newton of Honey Motors is a spokesman for the East Anglian Hauliers' Group, and says the concessions on fuel duty are simply not enough: "As a group, we feel defeated; we've done what we can, but we don't seem to get far."
He describes the measures to stimulate the development of alternative fuels such as LPG (liquefied petroleum gas) as a good idea, but adds: "LPG does not present a viable option for container haulage. We move 40ft containers, so can you imagine how big a gas tank would have to be to power that? And can you imagine the risk of explosions?"
Electioneering
Driver Mick Rennison dismisses the Budget as electioneering. "There's more foreign competition than ever coming in night and day, so 3p off the price of diesel and simplified tax rates aren't going to help at all." William Burgess, of Boltonbased Burgess Bros, which runs a fleet of 20 trucks, says UK hauliers are still a long way from competing on equal terms with foreign competitors. "It's not the price of diesel per se that's the problem; it's the price compared to theirs," he points out Chris Ogg of Geopost is one of the Chancellor's severest critics. He says: We are basi cally very disappointed, because the whole transport industry needs help if it is going to survive some of the issues it faces. There's a lot that should have been said that wasn't It was an unfriendly Budget for the industry" Ron Webb of the Transport & General Workers Union believes hauliers should be more grateful: "I don't see many other areas of private industry receiving this sort of help. It isn't getting the recognition it deserves."
Environmental pressure groups such as Transport 2000 even argue that Brown was too generous to the industry. Its spokesman, Steve Hounsham, says: "We feel the concessions offered to hauliers in terms of both fuel and excise duty will shift the balance further from rail freight to road freight.
"It's hard to see how the government will achieve its target of increasing rail freight by 80% as set out in its 10-year transport plan," he adds.