Cheap Euro fuel will remain for at least two more years
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by Miles Brignall and Dominic Perry Rebates on fuel granted to some European hauliers after their governments caved in to recent protests are set to remain in place for at least two years.
The news will come as a further blow to British operators already suffering the highest fuel taxes in Europe and rapidly losing contracts to Continental competitors (see page 5).
In Strasbourg last week the European Commission voted to allow Holland. France and Italy a further two-year derogation from legislation designed to level out fuel taxation across the European Union. This effectively allows two more years of essential user rebates in those countries.
Soon after fuel protests swept across Europe. EC Transport Commissioner Loyola de Palacio announced an investigation into whether such schemes constituted illegal state subsidies ( CM 28 Sept-4 Oct). But EC officials now say it is "highly unlikely" that de Palacio's report will conclude that they qualify as state aid.
One official says: "It would be slightly strange, and would require some explanation, if the Commission suddenly decided such rebates were illegal. I just can't see it happening."
On a more optimistic note. de Palacio has also announced that she is in favour of setting a maximum level of specific fuel taxes within the EU. In a television interview she has acknowledged that some member states had duty rates three times higher than others. Currently the EU sets only minimum levels of fuel duty.
Road Haulage Association chief executive Roger King says: "To have a Commissioner like Mrs de Palacio saying they are going to address this issue is immensely helpful. We no longer have to persuade them of our case. The next step forward does not lie with the UK government but with the Commission."
King plans to meet a Commissioner on 28 November to draw up a timetable for progress on tax levels. He wants the rules in place within five years, and says the RHA is not calling for tax harmonisation, but wants a band of taxation with a variation of about 20%.
• The EC has told the European Parliament in Strasbourg that the Brit Disc will not be illegal as long as it applies to UK hauliers and is in accordance with current rules. The final decision will depend on detailed information from the UK government.