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Preparing to charge
Page 20
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As the Conservatives and the Lib Dems promote their plans to charge LGVs to use the country's roads (and you thought that's why we pay road tax) the RHA and the FTA brief Roanna Avison on the issues...
Last week the Conservatives and the Liberal Democrats outlined how they intend to tackle congestion on the UK's roads should they get into office.
However, the Tories' plan sounds suspiciously like the Lorry Road User Charge (LRUC) which was finally abandoned by the government in 2005, and the Lib Dems want to charge freight to use the roads and give the money to the railways (see panel).
Roger King, chief executive of the Road Haulage Association (RHA), says that while the Conservatives' recognition of the need for additional road infrastructure is welcome, the RHA is cautious about the renewed enthusiasm for lorry road user charging.
"Spendingonroadimprovements to reduce congestion should not be delayed to wait for a speculative lorry charging project," he warns. "The Conservative proposal sounds so far like a rerun of the LRUC scheme announced by Gordon Brown in his Pre-Budget Report of 2001 and abandoned apparently on the grounds of impracticality and cost.This decision came after heavy research investment, including £40m on consultancy."
There have been some reports in the national press that the scheme could raise £10bn which would he put towards tackling congestion. However, this figure is not mentioned in the report and King says: "We need to understand over what period the reported headline flObn from foreign hauliers is to be raised, as there may be issues with EU competition rules."
"More broadly,we are suspicious of an apparent underlying belief that hefty new taxes on road haulage can pay for overcoming congestion; this sentiment is also evident in a recent Liberal Democrat policy statement."
Vital service
King points out that Britain's road hauliers provide a service that is efficient, responsive and vital to the economy:"It's also a source of pride that the safety record of our UK fleet is perhaps the best in Europe."
However, he points out that the huge differences in duty between the UK and other EU states is a serious problem and getting worse: "It gives foreign transport firms an unfair competitive advantage, is costing jobs in this country and is adversely affecting the longterm prospects of the UK road haulage sector."
He is adamant that the need to level the playing field on fuel duty is more pressing than it was when Gordon Brown recognised the problem in 2001. Yet not only has nothing been achieved, but the series of duty increases that began in November last year are making the situation worse.
Freight Transport Association (FTA) external affairs director Geoff Dossetter also notes the similarities between the Conservative plan and the defunct LRUC, but adds:"Such a scheme is attractive because it would charge foreign lorries for using UK roads and help equalise the enormous difference in operating costs between the UK and the rest of Europe. caused by UK diesel being taxed at 48p/lit against an average for the rest of the EU of just 23p/lit.
"However,the UK road transport industry needs a guarantee from the Conservatives that there would be no real increase in the level of taxation on UK commercial vehicles for the foreseeable future."
He stresses that UK operators are already paying extremely high levels of taxation, well in excess of their foreign competitors:-A single UK lorry doing 75,000 miles per year pays over £31,000 per year in tax. That enormous burden must not increase." Looking at the Conservative plans to enhance the strategic road network. Dossetter says they are essential, common sense and ever more necessary as the economy grows and the car population continues to increase.
Cost of congestion
-Every year millions of man-hours and billions of pounds are wasted as a consequence of what is now totally unacceptable congestion on our major trade routes," he says, The FTA is nonplussed by the Lib Dems' plans, saying road and rail both need investment and one shouldn't be subsidised by the other. •