All lorries pay their way
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THE NEW RATES of vehicle excise duty for lorries have been approved by MPs after Treasury Economic Secretary Ian Stewart promised that the Government had adopted the principal that all categories of lorry should pay "at least" their road track costs.
He revealed that the road track costs assessed to lorries was £960m while duty and fuel tax totalled £1,120m. The margin of £160m to take account of environmental and social costs was a "conscious act of policy," he told the Finance Bill Committee.
In a lengthy debate on duty rates and vehicle excise duty evasion, Opposition spokesman Jeff Rooker said Labour welcomed the fact that a heavier tax was being placed on heavier lorries than on medium and small lorries.
Labour MP Dale CampbellSavours, said it was his experience that many hauliers risked not paying ved because they felt it was "prohibitively expensive" and in a recession they did not know whether they would obtain work.
"In the past few years haulage has become a marginal industry in terms of profitability. I place the responsibility for that fairly and squarely at the door of the Government. "Hauliers should understand that the only condition in which they will survive is when the economy is in boom and there are plenty of goods to carry around the UK."
Many MPs suggested that fuel duty should be increased to get round the problem of evasion.
Mr Stewart said it was quite clear that the problem of evasion had to be reviewed "fundamentally". The last review by the Department of Transport showed that between 11 and 13 per cent of hgvs were not up to date with their tax.
Part of the purpose of the survey would be to identify the pattern of evasion by region and vehicle, he said. Mr Stewart said he had been particularly struck by the low level of penalties imposed by the courts.
Mr Stewart, referring to the changes in the duty bands, said• the heavy increase in costs over 31 tonnes had been deliberate.