Memorandum by Majestic International Freight
Forwarding Limited (RH 15)
As Managing Director & Chairman of the Majestic
International Freight Group I would like to express my concern
over the current state of affairs in our industry with particular
regard to International haulage contractors who, unfairly, find
themselves unable to compete with their foreign EEC rivals. This
has almost exclusively been caused by differentials in taxation
levels coupled with the crippling strength of the £ pound
sterling which has culminated in the unit cost of running a UK
based tractor unit being some 30 to 40 per cent more than a foreign
EEC competitor. This is effectively nothing more than "inverted"
protectionism.
There are already numerous examples of differing
tax levels within the community, the most notable being excise
duty levels on alcohol, which leads to reduced sales in the supermarket
and off-licence industry and a disgraceful "boot-legging"
black market of which Dover, my town, is the Country's capital.
How long must it be before it is realised in government circles
that the tax differential creates the black market? Whilst the
obvious counter-argument is that the government would otherwise
have to recover the revenue elsewhere, they should reflect on
the fact that substantial savings in civil-service expenditure
might be attained by removing so-called "specialist"
Customs officers from the Continental ports, notably Dover again!
Similarly, the unfair trading conditions experienced
by haulage contractors in the United Kingdom will inevitably result
in companies ceasing to trade thereby creating job-losses and
a consequent further burden on the exchequer in unemployment benefit.
My company considers itself to be a specialist
"freight forwarded". My operations are exclusively within
the road haulage industry and effectively we are "UK trailer
brokers". We do not operate our own equipment and are virtually
100 per cent dependent upon British haulage contractors. Our experience
is that, on a steadily increasing basis over the last three to
five years, a greater level of casualties (in terms of haulage
companies ceasing to trade) has arisen, a greater degree of fleet
reduction is evident and haulage contractors are forced to quote
freight charges to their customers which more and more often "prices
them out of the market".
The net effect on my Company is that there are
less and less vehicles available on the European freight market,
our annual turnover has reduced by 25 per cent as a direct consequence
and we are gradually being forced to place our business with foreign
contractors who can operate far more cheaply. This is grossly
unfair. Another immediate knock-on effect is that we have unfairly
had to look at our own operating costs with a view to creating
redundancies.
This is not a question of UK haulage contractors
either overtrading or failing to address the question of their
overheads and operating costs, it is a question of them attempting
to play on an unlevel playing field created by government taxation
on diesel, road-tax and the like.
It is totally unreasonable that the French,
German and Dutch authorities support their haulage industries
whereas our government appears to treat our haulage industry with
nothing but contempt.
Remarks emanating from the Department of Transport
and Industry that "I really do not see what the problem is"
do absolutely nothing to assuage or address the problem and in
fact only add fuel to the fire.
I ask that serious consideration be given to
the reduction of taxation levels as it appertains to the haulage
industry and that everything possible is done to create an even
trading environment to the companies and individuals within this
business. I do not see that the government should depart from
the European Union's fine principal of no protectionism within
the Member States but a vast contribution could be made bybringing
UK taxation levels into line as they already exist elsewhere in
Europe, thereby leaving British haulage contractors with a fair
chance.
SJ Oxenham FIFF
Group Chairman/Managing Director
February 2000
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