No threat, says tax committee
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• A cross-parliamentary committee investigating the effect of fuel taxes on British industry will probably offer little hope to beleaguered hauliers.
The committee of MPs will report back to the Department of Trade and Industry, but its findings will not be known for some weeks.
Even though he had heard evidence from sources such as the Freight Transport Association, the Road Haulage Association, the Transport and General Workers Union, the People's Fuel Lobby and the National Farmers Union, committee chairman and Labour MP Martin O'Neill seemed unconvinced that high British fuel taxes were exacerbating the threat of competition from foreign hauliers.
Although the PFL's David Hanley gave anecdotal evidence of haulage contracts lost to foreign firms, and the FTA told the committee that foreign hauliers could offer rates lower by 5-10%. O'Neill concluded: "So far there has been no evidence to support allegations of a foreign threat."
Labour MP Helen Southworth added that the tax burden on UK firms was the lowest of anywhere in Europe, giving UK firms an advantage over their Continental competitors.
The question of overcapacity, the use of non-European drivers and general terms and conditions in the industry were also discussed.