Stabilizing transport prices
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I was surprised that the Chancellor increased the petrol tax, and I would suggest, that since the cost of transport adds approximately 40 per cent to the cost of any commodity, that the Government should consider adopting a policy to decrease costs.
The following would go a long way to aid price stabilization: Reducing tax on diesel and other fuels by 75 per cent, and fuel tax on private cars used on business by 25pc; Lowering commercial vehicles' road tax by 25 pc; Reducing fuel tax on commercial flights by 50 pc.
My point that the whole cycle of transport costs acts like a snowball.
One must consider that transport enters in every phase in the production of commodities: from the extraction of raw material and its transport to factories; supply of outside supplies to factories; factory to factory — internal transport during production processes; from factory to dealer; from dealer to customer.
L. GEARY, Commercial Vehicle Consultant, Chelmsford, Essex.