Down-lic let-down
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By Alan Millar
CIVIL SERVANTS have dealt a last-minute blow to transport industry optimism that a limited down-licensing concession would be included in next month's Budget.
The Freight Transport Association and the Society of Motor Manufacturers' and Traders, which have been leading the campaign for a vehicle excise duty concession to apply to operators of high bulk/low gross weight vehicles used permanently at a low gross weight, had hoped that a watered down down-licensing deal could be struck with the Department of Transport.
This followed last year's "take it or leave it" offer by Transport Secretary Nicholas Ridley of a concessionary rate for operators of tractive units dedicated to the haulage of single axle semi-trailers.
Discussions with DTp officials centred around a distinctive vehicle excise duty disc being fitted to the tractive unit, showing the gross train weight of the unit and the maximum gross vehicle weight of the two-axle semi-trailers. For purely illustrative purposes, the DTp talked then of tax rates ranging from £620 for a 16 tonne vehicle to £2,450 for a 26-tanner.
While the DTp offer fell short of the industry's original target of full down-licensing for tandem and tri-axle semitrailers used permanently at a lower gross operating weight, it did find some favour.
Vehicle manufacturers welcomed it as a cheaper and more satisfactory solution than the present physical down-plating of tractive units to make them technically incapable of operating at higher weights.
Some operators indicated that they would switch to single-axle semi-trailers were there to be a tax advantage.
Now, DTp deputy secretary William Knighton has told the FTA and SMMT that work on replacing computer equipment and the Driver and Vehicle Licensing Centre at Swansea means it is impossible to make any changes to accommodate down-licensing, A "drastically curtailed" scheme was also considered by civil servants, but has been rejected by them as a "very poor second best".
The directors-general of the two leading associations, the FTA's Garry Turvey and the SMMT's Anthony Fraser, have reacted angrily to the DTp rebuff, describing it as the "last straw".
They say that the gross weight taxation system remains fundamentally flawed while it taxes some vehicles more heavily than is justified by the potential wear they impose on road surfaces.
But their greatest anger is reserved for the timing of the DTp's announcement. "We are astonished that it is only now that these problems have emerged."
Clearly, there is suspicion that fundamental DTp opposition to down-licensing has over ridden any industry momentum which could have brought in even the "drastically curtailed" option.