Memorandum by Associated Master Porters
& Stevedores Ltd (RH 12)
I write to inform you of the grave situation
that faces this transport company and many others in the UK due
to the high levels of duty on fuel and vehicle excise duty. All
industry in this country is reliant on road transport at some
point in its normal course of business, delivery of raw materials
in, products out. High duty on transport makes them uncompetertive
in a European market place.
I list as follows prices paid for fuel by this
company over the past few years and the cost on day to day running
costs. As at 7 November 1994 we were paying 37.50 pence per litre
which is currently the price in some European states. January
1999 we were paying 51.60 pence per litre, and in December 1999
we paid 62.68 pence per litre. This is an increase in one year
of 11.08 pence per litre which equates to 21.5 per cent rise.
This equals an increased cost for fuel per mile travelled of 6.50
pence. Which in an industry with profit margins as tight as road
haulage can only spell disaster.
Over this period of duty increase we have found
it impossible to gain rate increase to offset the high costs.
As a company that is involved daily in movement of goods for import/export,
we find that UK industry is not exporting goods firstly because
of the strong state of the pound, and secondly they cannot compete
with the present transport costs.
If this company and many others like it is to
service this present crisis we must have a level field on which
to compete with hauliers from European state, or they must be
taxed when they enter the UK as we are when using their road networks.
I would like to thank the Committee for its time and hope that
they can help the UK road haulage industry.
S A Ward
Director
February 2000
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