Stand your ground
Page 4
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Budget day is four weeks away and operators can expect an increase in fuel tax. We anticipate three to five pence per gallon.
The public sector pay settlements will also begin to bite soon, certainly by early May. The increased expenditure on wages will be reflected in rates increases. Across the country the increase could be as much as 20 per cent on average, which will mean 30 per cent in places.
These increases will affect the purchase price of every commodity, vehicles, tyres and fuel being the principal operating cost items, apart that is From the new wages structure.
What it all means is that haulage rates will have to rise sharply. We estimate a 20 per cent increase will just about meet the new costs and allow the same margin of profit in percentage terms.
Operators can expect to meet opposition to any increase but they must stand their ground. Road transport in the UK is the cheapest in Europe and should not be used to subsidise the rest of industry. An effective way to illustrate the demand for an increase is to use graphics — a technique often employed by the public sector to show how rates and taxes are spent.
This is a task we earnestly commend to the RHA Public Relations committee. It will greatly assist members in their rates increase discussions.