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RH A claims rebates would be no cost to the Treasury

4th November 1999
Page 6
Page 6, 4th November 1999 — RH A claims rebates would be no cost to the Treasury
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Which of the following most accurately describes the problem?

• by Miles Brignall The Road Haulage Association has presented new figures to the Chancellor of the Exchequer furthering its claim that an essential user rebate would be self financing.

As both the RHA and Freight Transport Association step up the pressure on Gordon Brown ahead of next Tuesday's pre Budget statement, the RHA says its updated figures reinforce the view that its introduction wouldn't cost the Treasury a penny.

Professor Douglas McWilliams, an economist with the Centre for Economic and Business Research unit and author of the work, says diesel price rises in line with the escalator pol icy have resulted in the Treasury losing vast amounts of revenue as operators have stopped filling up in the UK. He argues that by allowing UK hauliers a 31p/litre rebate, the net tax income from diesel duties will be the same because hauliers will revert to buying fuel at home. He says he Can support the theory using the Treasury's own economic models.

The figures are revealed in a letter sent by RHA national chairman John Bridge to the Chancellor warning of further protests if he fails to act over fuel price rises that are killing the industry (see box above).

In the same week, the ETA has also written to Brown pointing out that the fuel escalator is not working and has stepped up its advertising campaign in national newspapers and on roadside billboards. It has sent action packs to all members encouraging them to keep up the pressure on their MPs.

What is certain is that thousands of hauliers will be waiting nervously when Gordon Brown makes his statement in the House of Commons next week. There has been speculation that he will offer hauliers an olive branch. If this is not so, the RHA is expecting a huge turnout for its protest on 20 November. • The next RHA regional demonstration will take place on Saturday 20 November at the "Collector Road" near the M6/M42 junction in Birmingham. MIA director for the Midlands and Western region Mike Farmer says he is hoping that up to 1,000 trucks will support the day, which will include a convoy, a mass rally, and a speech by RHA national chairman John Bridge.

Drivers will gather from 10:00hrs onwards and events are expected to end at 1450hrs. Farmer says: A FAIR DEAL FOR UK TRU why we're holding this on a Saturday. The idea is to show we

"We're not setting out to disrupt the general public, that's ■11111111IY

are still alive and kicking and to keep the issue of fuel duty in the public eye."

Final details will be sent to RHA Midlands and Western members but anyone is welcome to participate.

• Contact: Mike Farmer on 01179 503600 for further information.


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