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Moving out to cut costs

3rd December 1998
Page 11
Page 11, 3rd December 1998 — Moving out to cut costs
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Which of the following most accurately describes the problem?

by Nikki Daly • International freight operator and abnormal load carrier Offshore Transport Services is the latest haulier to set up shop overseas in a bid to escape the UK's high tax and fuel costs.

Roy Harbour, company director of the Scunthorpe-based firm, flew to Barcelona last week to set up an office. 0TS's abnormal load trucks will be re-registered in Spain, although the trailer business will still operate from Britain.

"The taxation system is totally unfair," he says. "If the present legislation goes through, then my £20,000 annual tax costs could rise to £60,000."

The Road Haulage Association has been warning the Government that British hauliers will set up operating centres on the Continent unless tax burdens are reduced.

During his week-long trip to Barcelona, Harbour intends to bone-up on local regulations and to employ local drivers, although he says no UK jobs will be lost.

In a bid to compete with Continental rivals, OTS's 14-strong fleet of 38 to 80tonne trucks is already buying only enough fuel to get to Portsmouth's ferries. Diesel is so much cheaper on the Continent that OTS can save the equivalent of a driver's wage of £500600 based on a single journey to Spain.

Harbour says that feelings are running so high in the industry that this will just be the beginning of the exodus: "Unless we get a level playing field, I can see an awful lot in the industry following suit," he says.


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