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Timber hauliers to Lobby Government for red diesel

17th July 2008, Page 14
17th July 2008
Page 14
Page 14, 17th July 2008 — Timber hauliers to Lobby Government for red diesel
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Which of the following most accurately describes the problem?

By Chris Tindall.

THE ROAD Haulage Association (RHA) intends to lobby the Government to allow timber hauliers to use red diesel while they're loading wood in forests — or the sector will be devastated by the economic downturn.

Rising fuel prices are hitting the timber industry particularly hard because vehicles must be left running to operate the cranes.

The RHA says that timber hauliers' fuel costs are up 55% compared with 40% in other industries, and many firms are on the brink of going bust. It adds the global economic slowdown has caused a downturn in wood exported to the US for house building, resulting in oversupply and a 25% price reduction in the product cost.

The association is calling for HM Revenue & Customs to allow timber hauliers to use dual-fuel tanks, storing red diesel for use when the cranes are in operation.

Recently, the RHA met with the Confederation of Forest Industries (Confer) to discuss its plans.

RHA Scotland director Phil Flanders says: "The Government isn't keen on giving anything to anyone, but if these firms do go out of business, they will have to pick up the tab."

Confor executive director Chris Inglis adds: "If hauliers are going out of business due to production costs, it's bad for our industry."

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