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KEEP YOUR NERVE DON'T CUT RATES

1st September 2005
Page 3
Page 3, 1st September 2005 — KEEP YOUR NERVE DON'T CUT RATES
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Which of the following most accurately describes the problem?

And still they come. The latest government figures show foreign operators are pouring over our shores traffic from the most recent additions to the European ---mmaiiiiiimummemmujvier Union has doubled in the past year. So what do we do? Panicking and cringing, while always an option, will neither reverse this trends, nor give us the tools to win back our market. But there are other ways of looking at the situation.

This is one of the most efficient industries in the world analysts have repeatedly looked at the UK road transport market and their conclusions on this do not vary. That means UK operators are playing this game better than their foreign rivals, and we'd better continue to play it better. The Eastern Europeans may have all the advantages, but the home team has the skill.

It's true that this industry needs help and support from the government and we'll continue to campaign for it. The Burns inquiry, which is currently collecting data on your operations, what you need and, crucially, how hard you'll fight to get it, seeks to give the industry the arguments it needs to persuade government. Support it. Give it all the information you can because not until we have a coherent argument can we win the financial concessions that are so badly needed.

And in the meantime? Innovate. Diversify. Maintain your rates and your profit margins. Remember these newcomers will be offering a basic service for low rates. Lower rates than you can match, in many cases but a more basic service than many customers want. As we all know, not all business is good business.

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