Memorandum by GMA Warehousing & Transport
(RH 31)
As a Director of GMA Warehousing & Transport
Ltd in Ipswich and a founder member of the East Anglian Hauliers
Group, I am writing to give you some facts and figures about my
Company, and some more general figures that we have researched
together as the East Anglian Hauliers Group.
ABOUT GMA
Established for approximately 15 years. We work
from 100,000 sq ft of leased warehousing on a five acre site in
Ipswich. We operate 15 vehicles of our own, varying sizes. We
also have local owner drivers and subcontractors working for us
full time, and we give work to other hauliers from all over the
country on a "back load" basis when they are in our
area. When we are in their area we hope for a return load from
them back to the Ipswich area. This system tries to stop empty
running. We employ just under 50 staff in total, and turnover
approx £4 million pa. While our turnover has increased over
the last couple of years, our net profit has reduced. Warehousing
charges are fairly steady, but our transport figures have shown
that the more haulage we carry out on our own trucks, then the
more money we lose!
The last new trucks we bought were R registered.
We are not earning enough on our trucks to re-invest in new ones.
We are in a very competitive industry that shows very small profit
margins. Our customers resist proposed rates increases to cover
our increased costs! They threaten to go elsewhere. Some have
even been using foreign registered trucks for UK domestic work.
As a warehouse we regularly have foreign trucks
collecting UK bound traffic, as well as return loads to the continent.
Previously UK Hauliers carried these traffics but are obviously
now not competitive compared to our European counterparts.
THE MAIN
ISSUES
(a) Cost of UK Diesel compared with the rest
of Europe
East Anglian Hauliers Group (EAHG) comparisons enclosed.
GMA diesel costs in UK 15 December 1998, 51.30 pence per litre
+ vat, 17 December 1999, 63.70 pence per litre +vat an increase
of over 24 per cent in 12 months! Diesel now represents 35 per
cent of our lorry running costs at GMA.
(b) Ultra Low Sulphur Diesel
Since introduced on 1 August 1999, our vehicles
are doing less miles to the gallon than previously. Vehicles are
mainly M Reg and R Reg, but does this increase in consumption
not indicate a reverse environmental effect, as we are actually
burning more diesel? The oil companies also say that producing
ULSD takes approximately 10 per cent more energy than ordinary
old type european diesel. Speak to Shell.
(c) Foreign Competition
No level playing field exists. Since June 1998
when cabotage was abolished, mainland European hauliers have had
a major advantage in taking our business by using cheap foreign
diesel in this country (brought in their large tanks from abroad),
generally lower road tax, and then not paying any Vignette when
entering or leaving the UK. Why do British Hauliers pay Vignettes
in many other EC countries. I am told an average of £4 plus
per day. The amount of "foreign" lorries is increasing
year on year. EAHG figures enclosed.
(d) The Environment
The atmosphere will not be helped by the UK
Haulage industry running older trucks. Just look at the London
Buses and fumes they emit, this must be mainly due to their age.
UK Hauliers cannot afford to buy newer, cleaner trucks unless
we start making some money. If UK Hauliers are not making money,
some might cut corners on servicing. Mainland European truckers
burn their diesel which is not ULSD in this country. The more
foreign trucks the more damage to the environment.
(e) Safety
If UK Hauliers cut back on servicing because
of lack of profit, they are in effect cutting back on safety measures
also. Are European servicing standards as high as the UK? Are
European drivers more willing to flout driving hours regulations
and safety implications because they know that the UK Police and
ministry of transport find it very difficult and very expensive
to prosecute Foreign registered vehicles and operators?
(f) UK Transport related companies—Potential
Job Losses
The "Logistics" Industry of which
we are part numbers more than a million jobs and a million votes.
The demise of the UK Haulage industry has a "knock on"
effect to Vehicle Manufacturers, Vehicle workshops, Trailer manufacturers,
Tyre companies, and so many more too numerous to mention.
PROPOSALS
(a) Some sort of Essential User Rebate for
UK Hauliers.
Possibly regulated by Operators Licence and Tachograph
miles run.
(b) Separation of taxation between the Private
motorist and the essential truck user.
Congestion is mainly caused by cars that do
not need to be on the roads, rather than by trucks who need to
be there. How many trucks do you see delivering children to school?
(c) Better incentives to buy new trucks.
An increase and extension of the £1,000
RPC road tax, and a tax incentive. For investment in new trucks.
Possibly interest free government loans to buy more environmentally
friendly vehicles.
(d) Harmonisation of VED rates.
To be the same throughout the EC for similar
trucks.
(e) A Vignette for foreign registered trucks
entering this Country.
In Summary, I would just like to say that we
really do have a problem in this Country and something needs to
happen urgently to help the majority of Small to Medium sized
Hauliers.
If you want more facts I will be happy to give
them. I have nothing to hide and no political agenda.
As a member of the East Anglian Hauliers Group,
I can say that we have acted peacefully, and taken facts from
our haulage companies as well as Compiling Independent figures
in the enclosed brochure accurate on 15 July 1999 when we presented
them to approximately 50 Members of Parliament.
Please do something we need your help!
Jim Sheridan
Director
8 February 2000
| 
