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No to a free-for-all
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With a new cabotage regime due in 2009, a campaign has been launched to harmonise European Union fuel duty before its implementation.
Words: Patric Cunnane N ext year, a new cabotage regime is likely to be introduced, which will allow a foreign truck entering a member state to carry out three domestic jobs within seven days before returning to its home territory This will replace the current system where cabotage is defined as 'temporary' or 'occasional' work that is 'ad hoc, casual and circumstantial'.
The proposals concerning cabotage are likely to be ratified at the report's second reading in 2009, but new amendments could still be added.
So, while many believe the `three-in-seven' formula is the best that could be achieved, operators and industry bodies are concerned that MEPs in favour of lifting all restrictions may win the day against the advice of the European Commission.
At its May plenary session, the European Parliament adopted a position calling for a full lifting of all restrictions on 1 January 2014. This flies against the intentions of the Commission, which has taken a more cautious approach, and wants to review the state of the road transport market in 2013 before committing itself to a 'free-for-all' that could damage fragile economics. Alarmed by this development, the Freight Transport Association (FTA) is campaigning to block the 'three-inseven' proposals until a level playing field is achieved across member states.
Last month, the FTA brought together MEPs; UK operators and Government officials at a campaign launch in Brussels. It produced statistics that demonstrated a UK operator setting out from Calais to do three domestic jobs in the UK will pay £3,327 for a full tank of fuel while a Polish or a Hungarian operator will pay only £2,679, and a Czech operator £2,907 The FTA opposes permanent cabotage contracts under fuel duty differences.
Liberalisation
"We support liberalisation, it's in our DNA," declares James Hookham, managing director policy and communications, FTA, "but there are a lot of conditions that must be met before full liberalisation can go ahead."
He cites variations in fuel duty and different safety and enforcement standards as the FTA's main objections to continuous cabotage. "Under other circumstances, we would say about this package, 'bring it on', but we are not dealing with a level playing field."
Paul Hayes, head of international freight negotiations, Freight & Logistics Division, Department for Transport, backs the FTA's campaign to prevent cabotage operations becoming permanent and continuous, but he believes there are several advantages to the proposal limiting loads to three in seven days. He argues: "It makes sense environmentally, there will be less empty running and it is more enforceable and measurable. At the moment, a driver entering [the UK] can do unlimited cabotage journeys in 30 days.
"The burden of enforcement is on Vosa to prove they're carrying out illegal cabotage. That involves expensive surveillance."
The new proposal requires a haulier to prove they are not carrying out illegal cabotage. "They will have to produce a CMR note to show they were coming in on an international journey," explains Hayes. "What we are fighting for in the Transport Council is that operations should not be continuous and permanent."
Pan-European database
This is where the pan-European electronic database proposed in the new regulations governing access to the road transport industry could prove its worth.
Hayes adds: "We want the vehicle registration number on the database. Operators who carry out repeated trips would have to prove they are not doing long-term work with a permanent contract We have no problem with foreign operators setting up in the UK and going through our licensing regime. We are concerned that firms who come from a less vigorous licensing regime are effectively operating within the UK."
WHAT THE POLITICIANS SAY
• Brian Simpson, MEP, Labour, sits on the Transport and Tourism Committee and represents a North West seat. "I am a member of the Chartered Institute for Logistica and Transport," he says."And as far as cabotage is concerned, there are some zealots in the European Parliament who want free movement of everything and everybody, but we don't have harmonised safety standards; penalties or regulations for drivers.
"Until such harmonisation takes place, we are in danger of putting our own industry at a disadvantage."
Simpson also believes that the `three-in-seven' option shouldn't be introduced until the FTA conditions are met. He argues: "It should not he supported until we have a level playing field on safety and conditions. My north-west constituency has a high throughput of foreign lorries—this will make it worse, lead to more congestion and bring into question safety and the resources of the local police."
• Timothy Kirkhope, MEP, Conservative transport spokesman, sits on the Transport and Tourism Committee and represents a Yorkshire and Humber seal. Kirkhopc has regular briefings on the state of road haulage from a source close to the industry. His son is a transport manager for the Co op. Kirkhope says: "He gives me a lot of info about operators and their problems With European parliamentary elections due in June 2009, Kirkhope stresses the importance of resolving the issue quickly. He explains"From about March, we run out of initiative time, so it's important for us to keep the pressure up."
He adds that if the 'three-in-seven' proposal goes through next spring, then it will be the autumn of 2009 before operators notice any effect. •