Memorandum by Motor Transport (RH35)
UK HAULIERS—KEY
ISSUES
Motor Transport believes that:
— The high level of fuel duty has made
British hauliers uncompetitive in competing with rivals based
on the continent, and has made the costs of running a haulage
firm rise so sharply that many have gone out of business.
— Fuel in the UK currently costs 57
per cent more than in France, 61 per cent more than in Germany,
and 94 per cent more than in Spain (source: EuroShell, week ending
January 8 2000).
— This gives continental based hauliers
a substantial cost advantage in winning UK business.
— Overseas hauliers can have fuel tanks
up to 1,400 litres. If they filled up in France, and came over
on the ferry, it would give them a range of approx 2,000 miles
or 285 miles every day of the week. This is plenty of fuel to
allow them to do UK domestic work throughout the country. The
British haulier has to pay 57 per cent more for that fuel than
the French. As fuel accounts for 38 per cent of the cost of running
a truck, that is a substantial cost handicap.
— Our analysis of the comparative costs
of UK and French hauliers shows that UK hauliers doing domestic
work in France under cabotage are at a 7.5 per cent cost disadvantage,
even when using French fuel. This is because the UK haulier has
to pay the high levels of VED here, plus the French vignette costs
there.
— Meanwhile a French haulier coming
over here to do UK domestic work has costs 11.7 per cent lower
than a UK haulier because the French can take advantage of the
lower fuel costs while not having to pay the UK VED rates—indeed
they pay nothing towards the upkeep of our roads. These factors
far outweighs the higher salary and social costs they pay.
— The relative cost of fuel gives Continental
hauliers a substantial advantage when they work in the UK and
compete with UK hauliers. However UK hauliers working in France
are at a cost disadvantage to French hauliers. This does not give
a level playing field.
— The sharp rise in fuel costs have
a very big impact on the economics of haulage. Using our cost
tables we calculate that fuel is responsible for 38 per cent of
the cost of running a truck (including company overheads and staff
costs). In the last Budget the cost of diesel rose by eleven per
cent. To have a cost accounting for 38 per cent of your total
bills, compounding up by more than inflation each year would seriously
affect any business.
As well as making us uncompetitive, this has
a bad effect on the environment. This is because:
— Overseas hauliers can operate vehicles
at 40 tonnes on five axles. This is the most damaging weight for
our roads and bridges, and the Government puts a very high VED
rate to dissuade UK from using them. Yet overseas hauliers can
use this cheaper configuration, and pay nothing for the damage
their vehicles cause to British roads.
— The policy is encouraging unnecessary
journeys by trucks based in Continental Europe to come to the
UK. This is a waste of energy in unnecessarily crossing the Channel,
and clogging the ports.
— The lack of profit of UK hauliers
makes it difficult for them to invest in the latest environmentally
friendly vehicles. The best way to clean up the environment would
be to get the old trucks off the road and replace them with those
that comply with the latest European regulations, currently Euro
2, and next year Euro 3. Yet there is no incentive, or indeed
money available, for hauliers to change to these vehicles.
Motor Transport believes that the solutions
to these problems are:
(1) To introduce an essential user VAT rebate
on diesel purchased by hauliers to bring the cost of fuel for
hauliers into line with that paid in France. This can be done
either by reducing the fuel duty for hauliers with an O license,
or through the VAT system, whichever is the cheapest and most
effective system to operate.
(2) To change the VED system to a UK vignette
system based on mileage. This would be payable by all trucks using
the UK road network. If the payments were related to mileage as
well as weight, it would result in those who used the roads most
paying the most.
(3) The current VED rebate on environmentally
friendly vehicles should be continued but changed to apply to
all operators using vehicles with the current highest Euro regulations
on engines, currently Euro 2 vehicles, soon Euro 3. The present
method of giving the rebate does not make sense as it does not
always apply to the most environmentally friendly vehicles.
(4) One other measure could reduce costs
and reduce the impact of trucks on the environment. The best times
for trucks to deliver is at night, when the roads are empty. New
quiet vehicles minimise noise, particularly gas powered vehicles
with radios that automatically cut off when the door is open.
Currently delivery is banned in many areas at night. Allowing
more delivery at night, in the right vehicles, would ease morning
congestion and enable fleets to be used more efficiently.
(5) One measure that would help legitimate
hauliers and improve road safety, is allowing the impounding of
trucks run by hauliers without O-licences. These unlicensed operators
undermine the legitimate hauliers and put the public at risk.
Making an O license a condition of receiving a fuel rebate would
help get rid of unlicensed operators.
February 2000
|
