Yes, we need help after all
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IN RESPONSE TO Dominic Perry's leader article "Do we need any help?" (CM 4 November), I felt compelled to highlight some of the facts faced by the UK haulage business.
Let's start with fuel — the biggest cost for a UK haulier operating at 44-tonnes is fuel.
Let's put this issue into its proper context: if the average income of a typical 44-tonne tractor operation covering 100,000 miles per year is circa £150,000, and the return on sales is circa 2% (Motor Transport Top 100 2009), then the average 44-tonner might be lucky to make £3,000 profit. In order to achieve this princely sum, the vehicle will consume more than 50,000 litres, and the operator will collect for the government more than £25,000 in fuel tax! This is a service for which the operator receives no payment.
In addition to his duties as an unpaid tax collector, the operator must present his vehicle every four to six weeks for an inspection, observe and monitor his OCRS rating, and put up with arguably the most appalling road traffic congestion in Europe.
These are conditions not faced by many competing European hauliers, If this was not enough, it appears that many haul iers are also acting as unofficial bankers to the logistics/supply chain industry many of whom demand that the haulage operator provides free credit for anything between 30 days and 90 days, and then be subject to further discussion regarding payment of the outstanding account.
On top of this, European hauliers are allowed to enter the UK and use the roads for free, with fuel bought outside the UK borders, thereby contributing no tax to the government.
And while all this is happening, there are still nearly 200,000 trucks above 6 tonnes on UK roads that are more than 10 years old (with all the environmental and safety implications), and while the good old UK haulier continues to make such poor returns, we, the truck manufacturing community, will not be able to supply enough of our environmentally, safe and economical vehicles.
So yes. this is business, but is it a level playing field? The 130,000 UK-registered tractor units will contribute more than f.3bn in fuel tax alone in any one year, and I for one believe they need all the help they can get.
Des Evans CEO, MAN Truck & Bus UK