THE ROAD HAULAGE INDUSTRY
CONCLUSION
106. The road haulage industry is vital to the success
of a modern economy like that of the United Kingdom. It provides
a flexible and efficient means by which raw materials and finished
goods can be transported from point to point. As such it plays
an integral role in all parts of the supply chain, and the rise
of the internet, with all the challenges that poses to the distribution
system, means that the road haulage industry's value to the United
Kingdom's economy is destined only to increase.
107. As we have set out, the industry faces some
difficulties. We are particularly concerned that unequal competition
from European hauliers, unfair and dangerous competition from
'cowboy' operators, and the ease with which companies which are
not economically viable are able to enter the market threaten
to undermine the sustainable market for road freight, and to undercut
the responsible companies which make up the bulk of the industry.
We have made a number of recommendations to respond to these problems,
such as the introduction of a 'vignette' for both domestic and
foreign hauliers, better enforcement of safety and other regulations,
and the imposition of stricter limits on entry to the industry.
108. Despite the indisputable fact that the road
haulage industry is vital to our economy, we note that it is not
a very environmentally-friendly or sustainable industry. It remains
a significant source of pollution, of greenhouse gases, and of
congestion and nuisance, and its activities depend on the use
of finite stocks of fossil fuels. We urge the Government and the
industry itself to continue to take steps to improve its environmental
record, and we have made a number of recommendations towards that
end. We also stress the importance of the rail freight industry,
and the continuing need to promote the transfer of freight from
road to rail. It is essential that more sustainable means of transport
than road haulage are encouraged wherever practicable.
109. We have not accepted the principal argument
advanced by our witnesses from the road haulage industry, that
fuel prices and VED are too high, and should fall. We believe
that in the past haulage rates have been unrealistically low,
and have not reflected the true costs imposed by the road haulage
industry on our society. The real increases in fuel duties, although
imposed too rigidly in the face of rising oil prices, have gone
some way to creating a sustainable market in road freight transport.
If our objective is a safe and clean road haulage industry, which
contributes less to pollution and congestion, and which employs
well-trained drivers, and a sustainable transport market in which
rail freight is able to compete fairly with road haulage, then
haulage rates must rise to reflect the true costs of freight transport.
The small rise in the end-price of goods (only one or two per
cent of the total price[342])
that results is a price that we should all be willing to pay.
342 The Government told us that road transport accounts
for 5 per cent of end-product costs in the United Kingdom. Of
that, 25 per cent of heavy goods vehicle costs are made up by
fuel duty and VED. See RH48, para.17. Back
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