Editorial Flogging a ved horse
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WHEN the Road Haulage Association meets David Howell on Monday, the Secretary of State for Transport will hear arguments against the proposed increase in vehicle excise duty which he will find difficult to refute.
Mr Howell gave the industry the marginal benefit of 38 tonnes gvw and his colleague the Chancellor is planning to cash in.
The RHA quite properly will be telling the Government, through David Howell, that the cost benefits 38 tonnes were meant to produce have been negated through the proposed increase.
Not only will operators need to give 38-tonne operation very detailed consideration, but vehicle manufacturers will need to hold their hand to ensure that production of the heavier units will be economical, If the tax goes through, the demand is likely to diminish and the capital cost of the equipment will consequently increase.
The industry was told that heavier vehicles would make it competitive with other European operators. It was also suggested that our export market would benefit. The increased ved will go a long way to pricing 38 tonnes out of business even before it gets in.
It is not too late for David Howell to argue the case for road transport at the Treasury. He should lend a commercial rather than a political ear to the RHA arguments.