Memorandum by Foulger Transport Ltd (RH
23)
Further to your press notice of 14 January 2000
find detailed below our observations and current situation with
regard to our industry. We trust that this information will assist
in your findings.
Role of Road Haulage Industry
Our role is the transport of finished product
and raw materials. The road freight industry is capable of reacting
both quickly and efficiently to demands of their customers in
what is more often than not a "Just in Time" situation.
Manufacturers, Supermarkets and large multiples do not tend to
hold stock levels beyond more than two or three days and therefore
deliveries tend to be smaller and more frequent. The overall loads
themselves are still large enough to warrant large vehicles because
of packing specifications required by customers. We as an industry
do not send vehicles onto the road for the fun of it. We are in
this business to try and make a return on the very large sums
of money we have invested into our companies. We have invested
over the last few years in new vehicles which are more fuel efficient
and give cleaner burn thereby reducing pollutants. The introduction
of increased vehicle weights helps some operators. The high VED
charges levied on 40 tonne and 41 tonne vehicles however does
not make the operation of these weights always economically viable.
I do believe that the Government's intention was actually to make
it so.
The suggestion of moving more traffic by rail
at the present time is not a practical proposition. The railways
have neither the rolling stock nor the infrastructure to cope
with the amount of freight, which more often than not moves over
fairly short distances.
There are very few companies which operate rail
sidings for receipt and despatch of goods and therefore the goods
will still require collection or final delivery by road vehicle.
Impact of VED and Fuel Duty
The levels of VED in the UK are the highest
in Europe, which gives UK operators with British registered vehicles
a serious disadvantage whilst competing in a Pan European market.
Our mainland European counterparts not only have the advantage
of lower VED but can operate at higher weights. The introduction
of the Euro vignette does mean that we pay twice for the privilege
of operating into mainland Europe. In France with their systems
of road tolls the operators can reclaim the toll charges against
their VED.
In the UK we have neither the vignette or road
tolls but neither do we have bilateral agreements with our European
partners, so they can operate in the UK free of charges and tolls.
The VED rates paid by UK operators does not reflect the state
of the infrastructure or the amounts of money spent upon it.
Fuel prices have increased since December 1996
to date by some 30 per cent. The main cause of the increase has
been the implementation of the fuel duty escalator. This has been
employed across the board and applied to fuel for both private
and commercial use. The outcome is an increase in the costs of
raw materials and finished products to the consumer. We do feel
that there is a necessity to either charge fuel duty for essential
users at a different rate from that charged to the private individual.
This can be achieved by an "Essential User Rebate" as
suggested by the RHA or be reduction of duty charged on bulk deliveries
to haulage and transport companies for essential user use.
The trade press estimate that over 2,000 British
vehicles have "Flagged Out" to Holland with the loss
of revenue to the exchequer in VED and a considerable amount of
duties from fuel. We know also of large fleets that are "Flagging
Out" partially or totally into both Belgium and Luxembourg.
If the government are not prepared to look seriously at the problem
we will all have to look at the "Flagging Out" option.
This could mean in the long term a loss of jobs within the UK,
not only directly within the transport sector, but in the peripheral
industries. We know of major operators within the UK who are already
moving cargo from the UK to various European destinations using
vehicles operated by German Companies and crewed by Eastern European
drivers who are citizens of non member states. This in itself
is another problem but also another wedge being driven into the
transport industry.
Our industry is covered and smothered by rules
and regulations covering everything from Operators Licensing,
through Drivers Hours Regulations (and if the EC have their way
we will have further limitations placed upon us), construction
and use. We are proud that we as a company make every effort to
operate within all the constraints placed upon us. We do not take
short cuts and believe that we as an industry have an obligation
not only in Law but morally to ensure that we play our part in
road safety. The infrastructure on which we operate, and the sheer
volume of traffic make our life most difficult. The industry has
reduced the number of commercial vehicles and increased the volumes
of traffic carried. We are blamed for damage to the roads and
the pollution caused by motor vehicles. We should be looking not
to moving freight off the roads but at trying to reduce the number
of vehicles (look at the numbers of light vans and private cars
with only one person in them).
Jim Watson
Managing Director
February 2000
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