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Freight logistics being 'strangled' by fee rises
Page 6
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COVER STORY
By Joanna Bourke and Christopher Walton THE DEPARTMENT for Transport (DfT) is killing off the freight logistics sector -with its own hands': argues the Freight Transport Association (FTA), after two DIT agencies confirmed increases in HGV tests, 0-licence fees and driving tests.
The trade association says the hikes are part of a package of price rises, including fuel duty, that will result in haulage businesses wrestling with extra running costs of up to £1,500 per truck. It blames the DfT for not keeping an eye on VOSA and the Driving Standards Agency (DSA) in order to peg price rises to a minimum. And it claims the premise on which the DSA is relying to increase the cost of driving tests by almost 10% is "bogus': The DSA maintains the increase is necessary to cover its general running costs. The standard fees for practical lorry tests will rise by £10 (9.5%) to £115 rather than the £14 (13.3%) proposed last month, but the cost of becoming a fleet driver trainer will increase by 13% from £113.85 to £128.80.
DSA chief executive Rosemary Thew insists: "We are doing everything we can to ensure that fees remain as low as possible for our customers particularly during the current economic climate."
A consultation document into the fee rises says the DSA conducts fewer vocational HGV tests than practical car tests, so the loss of revenue will be less severe but even so, it will be £300,000 worse off.
The document adds that the DSA will have around 12.9m less to spend in total, reducing the availability of out of hours and weekend test appointments. As a result, week-day waiting times at some centres are likely to rise.
VOSA has confirmed an average 9% hike in annual HGV tests and a5% increase in 0-licence fees as well as a change in their collection. The price rises are expected to kick in from 20 April.
From the same date, the supplement charged for operators that use Designated Premises or Authorised Testing Facilities (ATFs) will fall from £1310 £6, and to zero from April 2010. However, VOSA says no ATEs have been established yet.
The current two fee transactions will be replaced with a single transaction, meaning that VOSA's enforcement activity will now be financed by test fees instead of 0-licence fees.
VOSA says the joint fees will spread the cost of enforcement over all operators and vehicles, and will help to update facilities.
An ETA spokeswoman retorts: "It's all part of a parcel of rises chucked at us by the government and its agencies. It's just not on. -We need to make sure the flexibility VOSA is promising from ATEs does come in to place, and we will be watching them like a hawk over this."
• For a full breakdown of new test fees, go to wwwtransportoffice. gov.ukkehidetestingleallets