Memorandum by The Institute of Road Transport
Engineers (RH 45)
The Institute of Road Transport Engineers is
a professional institution and not a trade association and as
such represents some 17,000 individual operating engineers in
all sectors of the industry. These include enforcement, training
and education as well as the more usual activities associated
with the whole life management of road transport engineering assets.
Consequently the Institute has no vested interest in any one particular
aspect of the industry and can therefore take an objective and
unbiased view.
Engineering progress over the years has resulted
in increasingly cost effective vehicles in terms of fuel efficiency
and decreased emissions, better reliability, durability, diminishing
requirement for maintenance and better potential productivity
in payload tonne kilometres per hour.
These benefits are however available to all
operators world wide and in terms of the European Union have a
neutral effect on the relative efficiency of the road haulage
industry between one EU partner and another.
External cost factors, particularly those of
fuel, labour and licensing, therefore are more relevant in determining
the overall operating costs and competitiveness of the industry.
Operational efficiency is, of course, key to
good productivity but we believe that it is now recognised that
the UK is a world leader in the practice of the logistics of the
supply chain including the road transport element.
In these circumstances the role of government
in determining taxation levels, regulation compliance costs and
in setting realistic efficiency incentives is crucial.
We believe that the government's approach to
regulation has been disjointed and in many cases based on political
or fiscal convenience rather than sound scientific, environmental
or economic premises.
Regulation without adequate enforcement only
serves to heighten the operating cost divide between those who
are operating legally and responsibly and those who are operating
illegally and irresponsibly.
We believe that pressure on costs is one of
the factors which has had the effect of reducing the quality and
quantity of those entering the industry as drivers maintenance
and traffic staff and has greatly reduced the training, retraining
and career development opportunities for these people to the detriment
of the industry and the economy.
Modern vehicles, although more reliable, durable
and inherently safer, are increasingly complex and require more
professional and thoroughly trained maintenance staff to minister
to them.
One of the unfortunate effects of the increased
aspirations to, and opportunities for, higher education for young
people is that the image of careers in engineering and technology,
and of technicians in particular, has become poor in relation
to finance, the arts and the media. This compounds the cost pressures
mentioned above.
We would therefore summarise our recommendations
as follows:
(1) Reduction in the level of taxation on
fuel and in Vehicle Excise Duty.
(2) A more consistent and structured approach
to regulation, particularly on environmental issues.
(3) Better and more intelligent enforcement
including perhaps a responsibility upon the hire or user of transport
to ensure that vehicle operators are reputable and their vehicles
are running safely and legally.
(4) Fiscal incentives to training, retraining,
competency licensing, and career development.
The Institute would be happy to elaborate upon
any of the points made above if required.
February 2000
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