ICs ease financial burden on hauliers
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wi by Charles Young
The level of financial backing needed to enter the haulage industry was reduced last week despite earlier calls for it to be raised.
The Traffic Commissioners reduced the level of finance required for one vehicle on a national licence from £5,200 to £4,300. The level for an international licence was reduced from £6,500 to £5.400.
The Ms say they reduced the levels in line with the weakened Euro and to help UK operators who are struggling in the face of competition from Continental operators. The new rates will apply to existing operators on 1 October 2001 and to new operators on 1January.
The previous levels were set across the EU last year, partly to deter new entrants to the industry in a bid to tackle the problem of overcapacity.
Senior IC Michael Betts says: "We've been anguishing about this
one for several months. We have to balance on the one hand the intention behind the original revised European figures and on the other the collapse of the Euro. Why should our existing operators suffer because the levels are tied to the Euro?
''Yes it's a reduction, but its still an increase an the previous [pre-1999] figures. We still support, in general, higher rates for the industry.' In March this year Keith BoardaII from the Reed Boardall Group told the Transport Select Committee which was examining competition in the haulage industry: "We should increase the entry costs to the industry. If a new haulier has to show greater financial resources, say a £20.000 facility, that would deter prospective hauliers."
The committee later endorsed this view.