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RAIL DEBATE

22nd April 1999, Page 24
22nd April 1999
Page 24
Page 24, 22nd April 1999 — RAIL DEBATE
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Which of the following most accurately describes the problem?

It is a pity that you allowed the debate about road and rail to be clouded by Lord Berkeley's letter (CM8-14 April).

He quotes the OXERA report (referring only vaguely to "the heaviest of road freight") as stating that 'the balance of evidence suggests that the inclusion of environmental and social costs can change from a position of overrecovery to one in which taxes are, on average, substantially below costs".

Without bothering to describe the "evidence", Lord Berkeley does not even tell us how "environmental" and "social" costs can be accurately and fairly measured, much less what they allegedly are.

He then treats us to an extraordinary howler when he says "a 6% increase in fuel costs probably adds about 1.5% to the overall costs of operating all trucks". Rubbish!

• The increase in fuel duty in the Budget was 11.6%; • This represented an increase of at least 10% in the bulk price of diesel; • The way this translates into increased operating costs depends on the size of vehicle and its annual mileage. For the workhorses of the transport industry this would typically vary between t5-3%— sometimes even more.

If we are to achieve a good relationship between road and rail, as surely we must, we need objectivity and accuracy. Brian Fish, OFF international, Bristol.

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Locations: Bristol

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