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DESPITE GLOOMY economic news and the government's perceived unwillingness to

19th May 2005, Page 21
19th May 2005
Page 21
Page 21, 19th May 2005 — DESPITE GLOOMY economic news and the government's perceived unwillingness to
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Which of the following most accurately describes the problem?

help the transport industry, operators remain confident about their business prospects for the second half of the year.

According to the latest set of results from the Commercial Motor/Michelin Business Monitor, no less than 80% of operators say their business confidence is the same or greater than in the first quarter of 2005. And 99% of operators surveyed expect their businesses to grow or stay the same size up from 93% in the last quarter.

Great news for the vehicle manufacturers: 13% of operators plan to grow their fleet over the next three months

Cautious outlook

However, a note of caution is sounded by a number of firms; nearly 20% say their business confidence has dropped since the last quarter, although this has slipped from 25% in the last survey. The survey also reveals other bad news over a third of operators say they have been affected by the downbeat retail sector and the collapse of Rover.

Although 82% of respondents voted in the general election, 84% do not believe the new government will attempt to help the road transport sector through cuts in fuel duty or modifications to the Working Time Directive.

In fact operators seem to be generally underwhelmed by the election result. Malcolm Jackson, who runs Exmouth-based Haynes Transport, says:"The general election has done nothing to change my business confidence.Like many other firms we are struggling to keep afloat in the industry.

"I don't think things would have been different if the Conservatives had got in just have the same agenda but use different words. I'm not looking forward to the next Budget as it will be the same as usual with fuel duty and taxes up."

No confidence

Although the Labour Party based its election campaign on the strength of the economy, low interest rates and low unemployment, operators do not believe this situation will last: 43% said the election of the new government had actually made them less confident in the future of the economy.

Bob Stanley from Nottingham-based H Sladen & Son says: -It is still too early to see what the government is going to do. It does look like there could be a slight downturn in the economy." •

Tags

Organisations: Labour Party
Locations: Nottingham, Exmouth

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