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Industry fury as DoT hikes
Page 6
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0-licence fees by 16% 1, by Emma Penny
Proposals for a 16.1% increase in operator licensing and vehicle fees have been slammed by hauliers and industry organisations, who are describing the government move as a "superb own-goal".
The Road Haulage and freight Transport Associations have written to Department of Transport asking for the increase to be delayed. They argue a 16.1% increase in fees in one go is too much, adding that the proposal is further blighted by the poor service currently being provided by the Traffic Area Network.
According to the DoT, the increase is the first for seven years, and the 16.1% rise is only equivalent to inflation during that period. It has told the FTA that failing to increase fees would "make it impossible to improve customer services".
However, the FTA retorts that "the standard of service provided by the Traffic Area Network and Vehicle Inspectorate has been below acceptable levels for some time". It alleges that the service is now so poor that some of its members have been unsure about whether their vehicles are running legally.
The proposal to drop the right to pay for vehicles five years in advance has been slammed by the RHA. Its head of technical services, Bob Stacey, says members are totally against the proposal: "Many people pay five years In advance and that makes their lives much easier— this option has to be retained."
Reacting angrily to the proposals, Bob Russett. chairman of the RHA and Palletline, believes that the DoT should delay any increase until it "gets things in order".
"I wish we could ask our customers for such a percentage increase in fees," he adds. "It seems bodies such as this can demand rates and there's nothing we can do about it. And I am even more upset when I think about what we get in return—there is chaos in some Traffic Area Offices.
"No commercial business with a perception of performing badly for its customers would even attempt to ask for an increase in fees."
Pat McCracken, director of Lanarkshire-based tipper firm Sandy McCracken, says the increase is just another way for the government to raise money: "It's a big whack. We have the Chancellor saying he'll cut VED rates, but then they are good at adding extra costs and taxes such as this and the 5% insurance tax."