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BCC calls for state aid

30th November 1989
Page 22
Page 22, 30th November 1989 — BCC calls for state aid
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Which of the following most accurately describes the problem?

• The Government should be putting more of its money where its mouth is, says the Bus and Coach Council, by tackling problems of pollution and urban congestion with cash and support for the PSV industry.

"We're grieved that there was a singular silence on PSVs in the autumn spending round," says BCC director of public affairs Barry Hoy. "All other modes of transport got cash and encouragement. Now that we're a privatised industry we're not asking for big cash handouts.

"But big problems have faced the industry in the past year or so, with 220 million Vehicle Excise Duty slapped on overnight without any real con sultation, fuel duty rebate • under threat, and talk of VAT to be loaded onto fares. This is all adding to costs."

The council wants to see PSVs recognised as an efficient and immediate means of easing traffic congestion and pollution. "If only 5% of UK car journeys were made using buses and coaches, 250,000 tonnes of pollutants would be knocked out of the atmosphere in a year," says Hoy. "The capacity is there ready to be used and new vehicles can be brought in within the year, whereas we'll be lucky if we see the benefits of the tunnel in our lifetime."

The BCC is likely to press for better tax treatment on capital investment in the vehicles. "It wouldn't cost the government a lot up-front and it would encourage fleet renewal with the benefit of modern vehicle facilities which the government say it wants to see."

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