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French operators in E259m fuel handout
Page 6
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France has done it, Belgium is thinking about it, but the UK still says no. Jennifer Ball reports on fuel duty reprieves.
THE UK GOVERNMENT says it has no plans to follow its French counterpart by offering operators an essential user rebate to combat rising fuel prices.
The move comes after French Finance Minister Nicolas Sarkozy revealed plans for £259m of aid to help operators, farmers and other businesses that are unable to pass the fuel price increases onto their customers. The French government is also considering a tax break for all drivers in December.
Despite promises in June by EU finance ministers not to take unilateral action. Sarkozy called on other EU states to follow his lead and take steps to bring fuel costs down.
The Belgian government has now said it is also looking at freezing fuel duty.
But, responding to a parliamentary question, UK Transport Secretary Alistair Darling said successive governments have taken the view that "a certain proportion" of government expenditure should be financed by fuel taxation. He added that French operators have to pay expenses, which UK operators do not, involving employment, insurance and other social costs.
A Department for Transport spokeswoman adds:"It is important to look at fuel duty in a widercontext to taxes in other European states."
Alan Greene, the man behind the 2000 fuel protests, warns that feelings are running high: "We have tried negotiating and have been to the House of Commons but the government continues to ignore the problem.
"If the French government, just 50 miles across the water, can do this then so can our Chancellor," he says. "They only pay 44p/lit. Smaller operators are collapsing, while the money the government is making is going into a war chest.
"Even bigger haulage companies are now looking rocky. It's time for direct action."
However, French hauliers may not be satisfied by their government's promises. One trade association, the Unostra Nord-Pas de Calais,has called on its members to prepare for action — and the FNTR association adds that it cannot be held responsible for action taken by "desperate" operators.