The government considers paying hauliers to go away
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I by John O'Donnell
The government might encourage hauliers to quit the industry by paying them for their old trucks as part of a radical new scheme being considered by ministers.
The news has angered BRA national chairman John Bridge, who describes the proposal as "crass stupidity" and claims the industry was not consulted.
The plan, which was developed by an influential peer, is designed to tackle the problem of overcapacity in the haulage industry One senior source promoting the plan revealed: "We have now got it on to the table of people who are going to make a decision."
Lord Bradshaw, who is championing the scheme, says it would help hard-pressed hauliers make a graceful exit from the industry He explains: 1 would favour offering, say 20,000 people the opportunity to scrap an old lorry on the condition that they left the industry It is something that would benefit the hard-working small haulier. More people would choose to leave, but at least they would leave with a bit of capital rather than struggle on until they end up bankrupt." Bradshaw, who is a member of the influential commission for integrated transport which advises the government, says the plan would take the pressure off operators who decided to stick it out.
He believes if there were fewer operators it could lead to a rise in rates: 'What people are saying is that they are not making an adequate living, but fuel prices are very little to do with it: it is overcapacity Road haulage is a buyer's market—there are too many lorries. That's why I don't think cutting fuel prices will help the haulier."
Bridge became aware of the proposal after reading a recently letter from Bradshaw in the Financial Times. Bridge says: "You'd think he would at least have talked to the people involved before making such statements. He clearly doesn't understand the nature of the haulage industry. While sometimes it looks like overcapacity, it's just the cyclical nature of the business, There are peaks when the industry has to be geared up to cope with demand.
"It is the fuel issue which is killing the haulage industry," he adds. "Getting rid of UK operators will just exacerbate the threat of foreign competition. It will mean more foreign trucks, which are more polluting and don't pay British tax or buy fuel in the UK."