Memorandum by the Shropshire & Border
Counties Transport Association (RH 47)
Shropshire & Border Counties Transport Association
was formed in 1998. It consists of small Road Haulage Businesses
and Owner Operators.
It was founded because many small rural businesses
are suffering badly financially, in a way most have never experienced
before. All of our membership have absolutely no idea if things
will improve or whether they will go bankrupt first!
We are united by some very simple, but fundamental
problems. The costs of the tax on road fuel (DERV) is causing
severe hardship, for instance some of our members pay as much
as half their total earnings on fuel alone, not withstanding Vehicle
Excise Duty, Wages and other overhead costs. Some of our members
are struggling to extract enough money from their businesses to
live on, despite having to work up to 80 hours per week! Many
of these expressed concern over the direct and indirect presence
of foreign competition and whether we will be able to continue
to compete with Continental Operators.
These factors conspire to lower the quality
of the services we provide. They tend to put pressure on Drivers
to work long and anti-social hours. They make less resources available
for the upgrading of old vehicles and reduce the cash available
needed to keep older vehicles roadworthy! This applies to the
legal firms.
We would suggest that the high taxation threshold,
will tempt many businesses to break the law, in order to try and
survive. We do not condone this practice, but in reality, many
firms must have had to resort to breaking the law. We are very
worried that current law abiding operators, may be forced to follow
suit.
For instance the use of rebated fuel, deliberate
overloading and major infringements concerning Drivers Hours regulations
are all choices which desperate people could consider as a way
to prevent bankruptcy. I am sure that anyone reading this letter
would agree, this sort of practice must be avoided at all costs.
A point we have explained to our local Traffic Commissioner in
1998.
Unless the Government is made explicitly aware,
of the sheer damage it is doing to Road Hauliers. Shropshire &
Border Counties Transport Association believes that a very large
proportion of domestic small and medium businesses will cease
to exist, with both the loss of jobs and future revenue to the
Government. With any balance being taken by foreign firms currently
paying no revenue to H M Treasury. Since the inception of our
organisation we know of 16 small businesses that have ceased trading.
Recently, three of our members accompanied the
East Anglian Haulier's Group to meet various Members of Parliament
on 26 January 2000. As a result of that meeting, we have approached
our own membership with a view to supplying information to the
Transport Select Committee. Enclosed are the opinions of some
of our members.
J G Jordan, Chairman
February 2000
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