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Red light for green grants?
Page 18
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Grants to help operators go green are set to be slashed and capped. Emma Penny reports.
The Energy Saving Trust (EST) is considering cuts of up to 40% in its PowerShift and Clean-Up grant programmes for 2004/05, as well as capping the amount of money available.
The EST has suggested cuts, among others proposals. in a discussion document sent to the trade associations. The move follows a hiatus late last year when the schemes simply ran out of money (CM 20 November 2003).
Capping green truck grants
Proposals include a cap on the level of grants available to operators who want to invest in greener trucks. For example, while it might cost £30-35,000 to convert a diesel truck to run on gas, firms could get a grant to cover 75% of the cost, up to a maximum of £40.000. Under the proposals, the cap might fall as low as £20,000, making conversion financially unviable.
EST spokesman Clive Case says the body wants to ensure grant levels are "adequate" for the next financial year: "We want more consistency and to be fairer so we have to review how the grants are awarded." PowerShift and Clean-Up received more grant applications last year than in any year since their set-up in 1996, he adds.
The discussion document says: -PowerShift grant levels will have to be reduced in 2004/05 to ensure the programme is able to operate for the full financial year."
But the Freight Transport Association condemns the proposals. It warns that the cuts will "throw companies' environmental strategies into confusion".
PTA economist Simon Chapman adds: "If changes are needed they need to be signalled well in advance, and not announced at the eleventh hour to balance the books."
He adds that the abrupt curtailment is quite unnecessary, especially given that the govern ment has spent less than half of the £100m that was allocated to the Road Haulage Modernisation Fund.
While the cuts might make little difference for bigger fleet operators which are keen to improve their green image, some other truck operators are less than impressed with the EST's proposals, and believe it will dramatically cut grant applications.
Hit by the funding fracas
Owner-driver Mick HodgkinsonfromAlfreton, Derbyshire, was one of the operators affected by last year's funding fracas (CM 20 November 2003): the EST simply failed to pay the promised £400 for maintaining his truck exhaust. A cheque finally arrived three weeks ago.
Hodgkinson believes few people will be interested in the initiative if grants are cut. 'What are they going to achieve it' they cut grants by 40%?" he asks. "People are only interested in revenue, not the environment. If they're not going to make anything out of it, they won't be interested."
Manufacturers too, are worried about the proposals. Tony Ballinger, Scania's expert on alternative fuels, says that if the cuts go ahead. they'll be the death knell for gas-powered trucks: "They say it's a mature market —it's not. This is exactly what manufacturers feared.They should be increasing the grants. not cutting them. If this goes through,customers won't buy them and manufacturers won't make them."
• Grants in Scotland are not affected as they are administered by the Scottish Executive.