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FTA calls for short fuel duty respite

20th May 2004, Page 6
20th May 2004
Page 6
Page 6, 20th May 2004 — FTA calls for short fuel duty respite
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Which of the following most accurately describes the problem?

Industry makes urgent calls for a cut in fuel tax as the price hike

continues, and fuel protesters bridle. Chris Tindall reports.

THE RECENT shocking rise in diesel prices has led to a call by the Freight Transport Association for a temporary cut in the level of fuel duty, to stave off spiralling transport costs.

Although many in the industry are demanding that the scheduled hike in duty of 1.9p/litre in September be dropped in light of rising pump prices, the FTA says this will not resolve the problem.

An FTA spokesman says: "Obviously we want the 1.9p/lit thrown out, but if fuel is still at $40 a barrel by 1 September we will be in trouble anyway. It's the fault of the high tax regime which remains a depressingly large part of the price."

The FTA's chief executive, Richard Turner, adds: "The issue is not what happens in September, but what is happening now." Despite this, a UK-wide cam paign against the September increase has been launched by Brynle Williams, the man behind the blockades four years ago and now a Welsh Assembly member. Williams wants to see the tax frozen to prevent operators being

forced out of business. However, he is distancing himself from any direct action that may take place.

This follows news that the government plans to send in the Army to maintain supplies, should fuel protests go ahead.

"We are all aware of the graveness of the situation," Williams says. "Fuel is going up beyond our control. As far as taxation goes, that is in our control and it's affecting [operators'] businesses."

Williams says he is not aware of any direct action being planned and he is hopeful it will not come to that. "It worked once; it doesn't mean it will work again. We need to sit with the powers that be and try to resolve this sensibly."

His thoughts were echoed by one Scottish operator, who says: "Blocking the roads will do more harm than good."

Peter Knight, for Favershambased Les Knight Transport, says the only way forward is through "dialogue", but time is running out: "If we can't get through to them, we are finished. Personally I think we can, but I don't think we have until September."


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