Bulgarian competition forces jobs cuts
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• A freight forwarding and haulage firm has axed 15 drivers after competition from Eastern Europe forced it to drop its services to TIR destinations.
Wallasey-based Falcongate Freight Management has been moving consumables to the Middle East and Eastern Europe for the past 23 years, but is unable to compete with undercutting by Bulgarian operators. Managing director Len Beddows explains: 'Their drivers are paid £75 per month, and they're running around the EU doublemanned offering rates similar to the amount we pay in wages!"
He also cites excessive UK taxes: "Last year we paid £85,000 in road tax here and a similar amount overseas." And Beddows adds that "the
final nail in the coffin" is the government's plan to fine hauliers £2,000 for each illegal immigrant found in a truck. Last year the firm found about 50 stowaways: "We just can't risk the fines," he says.
The company will continue to run flatbeds to move oil-well equipment—as Beddows points out, "Immigrants aren't a problem with these", it will also continue to provide warehousing and freight forwarding services by air and sea and its network of road freight Subcontractors.
Beddows concludes: "All the government has to do is to tax foreign vehicles when they are in this country, reduce diesel taxes to European levels and adopt a common-sense attitude to the problem of illegal immigrants."