Downplating on ice
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THE GOVERNMENT is keeping an open mind on the possibility of providing for downplating of goods vehicles when the tax restructuring is implemented.
Government spokesman Lord Skelmersdale told the House of Lords last week that in particular the Department of Transport is reviewing some of the factors on which track costs are calculated in the light of representations from interested parties.
This meant the incidence of road track costs could have altered somewhat by the time the change to a gross weight basis is implemented.
The Government was not convinced by the downplating case, and remained sceptical about its enforcement. But it would continue to consider it.
Speaking against an amendment to the Transport Bill to authorise downplating — it was later withdrawn — Lord Skelmersdale pointed out that the Bill did enable Transport Secretary Norman Fowler to substitute different definitions for gross weight and train weight of a vehicle.
This meant that the Government could continue to listen to the downplating argument so that a scheme could be introduced if necessary.
-Lord Skelmersdale said he had no doubt that most companies would not seek to abuse a downplating provision, but a less-scrupulous operator who, for example, was temporarily short of cash might find the temptation too great.
He could simply declare a low operating weight, thereby making a substantial saving on his tax liability, and run the risk of being caught at a higher operating weight.