Memorandum by the Institute of Transport
Administration (RH 17)
THE ROAD
HAULAGE INDUSTRY
INQUIRY
We thank the Committee for the opportunity to air
view of members on this very important subject. Whilst the amount
of time allocated was small the views of those members replying
appear directed in very specific directions, as you will observe:
(a) The Role of the Road Haulage Industry
etc
There is no aspect of our modern day to day
existence that does not rely on movement of goods to sustain the
quality of life we enjoy. For this to continue we require a realisation
by those in power that positive steps, at government level, need
to be taken to promote the development of policies which not only
promote the industry but will add incentives to the future of
road haulage by the import of new and younger management. Without
such prospects many will fail in their endeavours to stay ahead
of opposition from other European based operations.
The haulier needs to transport goods by road
with efficiency and safety and at an acceptable cost to the client
but with a sensible profit margin to ensure future survival. Such
profits could be utilised to maintain or upgrade vehicles in a
manner which is environmentally friendly and with drivers who
are trained for their job and can function in an efficient manner.
However, we feel that the pressures currently placed on UK hauliers
are preventing profits, growth and training from reaching their
optimum levels.
We as an Institute, with many members in the
Road Haulage sector, are concerned that the Industry will not
survive unless positive "friendly" action and re-action
is shown towards the Haulage Industry. Generations of Political
tampering have created an unwanted anti-Lorry attitude without
the realisation of just what a good haulage industry Britain has
had, but may not have for the future. The public need confidence
in the indigenous Haulage Industry and there is need for the introduction
of a Transport Plan for the Industry which will set a pattern
for all to follow and it is suggested that a period of ten years
would be an ideal target to aim for. The "environmentalists"
have not got the exclusive right on opinions, there must be a
"middle way".
(b) The Impact on the Industry on VED and
other Duties
The historic affects on the Industry are well
documented and we feel that our comments to many individual Members
of Parliament at the time of the last Budget, summed up our feelings
on Fuel Duty Escalators. Full documents were submitted at the
same time by our friends in the RHA and FTA, both Trade Associations,
which more than covered the Duty factors. The "harmonisation"
of VED between European Community countries appears many years
away and whilst the mainland hauliers continue to enjoy lower
Duty levels this is having a major effect on trade balances. Many
of our members are involved as Freight Forwarders and Ferry Trailer
operators who are fighting to keep parity on rates and profits
against competitors who are able to run their transport on 20
to 40 per cent lower costs.
On fuel costs alone we have suffered an increase
of over 6 per cent in the past three months and many hauliers,
especially those tied into long term industrial contracts, are
being told to reduce their charges to rates last achieved nearly
10 years ago. The more obvious "High Street Distribution
Contractors" are also subject to many pressures from clients
on rates long-term. These tariff operations are rendered useless
by fluctuations, always up-over, in VED and Fuel Duties. We need
to be able to consolidate and stabilise our Industry, not destroy
it.
(c) The Regulations governing the Industry
etc
We are well aware that regulations governing
the enforcement of UK transport are only as good as the amount
of people available, from whatever discipline, to enforce the
regulations. We have for many years commented on the lack of staff
or incentives to create an environment where legislation really
counted for something worthwhile.
Our opinion, and we count many Police, ex-Police,
and other Enforcement Agency personnel, amongst our membership,
is that the whole concept of split responsibility enforcement
is seriously flawed. All road related enforcement should be centralised
into a National (eventually Pan-European perhaps) Highway Patrol
operated in a similar manner to the US system. The actual "police"
operation would be cross border and all proceeds/recoveries made
would fund the continued operation of the system. We feel that
many Police forces, Licensing Authorities and the Vehicle Inspectorate
would welcome the opportunity to have the enforcement of all road
related traffic in the hands of one Agency. Politically it could
do much for whoever introduces such a scheme as at present we
have up to five different agencies enforcing similar traffic legislation!
(d) What Changes to Government Policies etc
Road Haulage is a highly capital intensive industry
but whilst we have no claim to special treatment in, say, preferential
tax breaks it must be realised for the industry to survive help
needs to be given. This aid must be directed towards both capital
and revenue costs otherwise the industry is doomed. A healthy,
and therefore expanding, industry is good for Britain as a whole
and if the figures are improved the haulier will be more willing
to accept social and environmental constraints. You are more likely
to notice the "green" market when things are going well!
Many hauliers feel that the £32 billion
collected in Vehicle and Fuel Taxes should be subject to fairer
allocation on Roads and related Services, they are aware that
less than 20 percent of Road User Taxes are actually spent on
improving existing roads and the By-pass Programme appears in
shreds. This is an area where much debate has taken place and
feelings, towards probable implementation of UK Road Pricing systems,
are somewhat coloured by the fact that UK hauliers presently have
to pay European Road Tolls but our European competitors pay nothing
towards our road system. Again Harmonisation is many years away
and some of our Members believe that as an interim measure a "per
lorry, per trip" levy should be introduced for non-UK accompanied
vehicles.
The debate on costs of fuel between UK and Europe
has been glossed over as obviously you will receive first rate
analysis from the Trade Associations and Transport Lobby Groups.
We are a Professional Institute with Members from all Transport
Disciplines and our comments are those of a selection of our Members,
who vary from massive High Street names to many smaller operators,
some with only one or two vehicles.
Again we thank you for the opportunity to comment
on the state of the Road Haulage Industry as our Members see it
today. Should further comments be required in a similar informal
manner we would be pleased to assist the Committee.
Geoffrey Fletcher
Chairman External Affairs Committee
February 2000
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