Memorandum by The Malcolm Group (RH 16)
THE ROAD
HAULAGE ASSOCIATION
Thank you for your recent letter in connection with
the above and being one of the largest hauliers in Scotland, we
welcome the opportunity to give our views.
Background
The Malcolm Group is part of Grampian Holdings
plc. Our turnover for 1999 was £58.3 million with an operating
profit of £8.2 million. We now employ over 1,000 people and
own over 400 vehicles and 800 trailers as well as in excess of
150 excavators and close on 3 million square foot of warehousing.
Thoughts
Our comments on each of the four aspects your
sub-committee will be examining are as follows:
(a) The road haulage industry has a vital
role in the economy and how efficiently it runs. Your own Government
figures will no doubt tell you what percentage of goods move by
road and there is really no need for us as a company to reiterate
that should our industry be unable to give a professional service,
or no service at all (striking lorry drivers!), the economy of
the UK would very quickly come to a standstill. We cannot assess
the impact on the environment other than expressing concerns raised
by other individuals or bodies. We are always looking at means
of reducing pollution and have converted all our lorries which
can be, to operate with the reduced pollution certificate. The
impact on the environment with regard to pollution is really a
lorry manufacturer's remit although as hauliers we are willing
to consider anything which might help out. If environment also
encompasses road congestion problems, in our opinion the whole
of UK industry will have to change its method of working. As we
are in the service industry we are only responding to our customers
needs which is mainly Just-in-Time deliveries and cannot refuse
to go on the roads to ease congestion. Night running has increased
over the last four years and if one could work towards an increase
in this, traffic problems during the day would be helped. However
being realistic, Great Britain plc would need a major change in
ideas, not likely at this moment to happen.
(b) The impact on the industry of current
and past rates of vehicle excise duty has been absorbed and has
stabilised for the last few years. However, the fuel duty increases
have had a massive impact on profitability. With fuel being up
to 33 per cent of our costs we cannot absorb these increases and
therefore must attempt to pass them on to our customers. This
is becoming increasingly difficult with the resultant squeezing
of margins. The price along with the comparison with European
countries allowing their lorries cheaper mileage costs when in
Britain will eventually adversely affect the industry.
(c) We are quite satisfied with the regulations
that govern the industry as they stand, although the new EEC restriction
on hours worked will impact on an industry which by the nature
of the job, work long hours from clocking in to clocking off,
due to waiting time, traffic hold ups etc. Our complaint is more
on the enforcement of the hours as they stand. We are aware of
hauliers who do not carry out the job legally, but due to the
lack of DOT personnel, can get away with it. This impacts not
only on the safety aspect but also means that a level playing
field is not in place within the industry and eventually could
encourage others to join in illegal activities.
(d) The main changes which we would like
to see happen are:
(i) more enforcement officers to carry out the
law;
(ii) a decrease in fuel duty working towards
parity with other EEC countries on price paid;
(iii) more encouragement to vehicle manufacturers
to work towards more fuel efficient and more environmentally friendly
lorries;
(iv) standardisation of 44 tonne vehicles;
(v) carry out investment of key road projects
put on hold.
Andrew B Malcolm
Group Managing Director
February 2000
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