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Brown promises review of liability insurance

5th December 2002
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Page 10, 5th December 2002 — Brown promises review of liability insurance
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Which of the following most accurately describes the problem?

4 by Chris Tindall

The Chancellor's pre-Budget statement has given hope to hauliers facing crippling liability insurance premiums—but there were few other encouraging signs for the industry.

Gordon Brown proved he had taken on board concerns about rising insurance costs by announcing that the Department for Work and Pensions would undertake a formal review of the operation of employers' liability Insurance.

But he did not announce any action to tackle the high rate of OK diesel duty compared with other European countries. He also failed to discuss ways of minimising the impact of soaring oil prices In the event of military action in the Gulf. In addition, the Chancellor promised a £.3/tonne increase in landfill tax each year from 2005 in an effort to reduce Britain's waste mountain.

The FTA says the key feature of the pre-Budget report is what Brown did not announce: "It's a great shame that the Chancellor has not taken this opportunity to introduce measures to bring LIK fuel duty taxation more in line with European competitors," says a spokesman. "However. he has heeded Industry's calls to tackle soaring liability Insurance premiums as freight transport operators have faced crippling annual increases in vehicle Insurance of up to 20% per annum."

The Environment Agency says It welcomes the Increase in landfill tax. A spokesman says it will encourage businesses to find alternative methods of waste disposal and suggests that the revenue raised should be ploughed Into "changing tipping habits".

However Steve Robinson, principal for Essilar Waste Management, says he is "absolutely convinced" that the increases in tax will simply lead to more incidents of fly-tipping, unless there is a corresponding Increase In enforcement.

It will have a very heavy impact on the transport industry,he adds. ''It's very heavy waste and in terms of the industry you are talking about huge tonnages. When you look at the scale of things, 13 is substantial. But It's a necessary evil."

Chief executive for the RHA, Roger King, says he welcomes the Chancellor's measures on insurance premiums and a new modern apprenticeship taskforce.

But he stresses that It was only a pre-Budget speech and any real changes will have to wait for next year's Budget: "People have a misunderstanding with pre-Budget statements. It just gives a current state of the nation's economy."


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