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Fuel duty freeze doesn't go far enough
Page 7
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By Joanna Bourke
0 IN LIGHT OF THE economic climate and the credit crunch starting to bite, the Government has postponed the planned 2p/lit increase in fuel duty — but the industry insists that is not enough.
Fuel duty rates will remain at 50.35p/lit after 1 October; Chancellor Alistair Darling says the decision "will help motorists and businesses get through what is a difficult time for everyone".
Road Haulage Association chairman Andy Boyle states: The Government has seen sense; now let's move on to the main event and try to ensure that hauliers stay in business."
Geoff Dossetter, external affairs director at the Freight Transport Association, emphasises that the next target is to decouple the way diesel is charged for CVs from other vehicles.
While Paul Arthurton, owner of Paul Arthurton Transport, believes the decision will help, he says the blame should no longer be directed at the high prices. "We should make fuel a thorn in our side rather than a knife. Companies need to charge the rates needed to make some money. If the customer won't pay, then the customer doesn't get the lorry."
Brian Lee, managing director of Allan Morris Transport. says: "By law, fuel duty escalators should be built into contracts. It is only fair."
In response to this idea, the Treasury claims: "A 'fair fuel stabiliser' would create anything but stability for the UK economy. They rely on tax windfalls that are unlikely to exist in reality."