Memorandum by Lacey's Freight Services
(RH 49)
As a result of the Governments Fuel Duty Escalator
Policy, British diesel costs excessively more than in any other
European country. A comparison of current costs are:
Britain—£0.68 per litre (pre VAT)
Belgium—£0.38 per litre (pre VAT)
Luxembourg—£0.34 per litre (pre VAT)
Heavy Goods Vehicle Excise Duty is also very
much more expensive in Britain than in any other European country.
Comparisons for a 40 tonne articulated lorry (the European industry
standard size) are:
Because of the vast difference in both fuel
and excise duty costs, British Hauliers are obviously at a very
serious disadvantage.
British Hauliers engaged on international work
are disadvantaged because of the difference in Excise Duty. The
Government argues that many foreign countries impose further road
tolls on their own countries vehicles. This is true, but these
tolls also apply to British vehicles using these roads, whilst
foreign vehicles use our roads for free.
In July 1998, cabotage restrictions ended, meaning
foreign hauliers are now free to "muscle in" on our
domestic haulage market, bringing their own cheaper diesel in
high volume fuel tanks (enough for several days work in the UK).
Paying less in road tax (none to the UK Treasury), they are able
to drastically undercut our own Hauliers cost.
Typically, a 40 tonne articulated lorry will
consume on average one litre of diesel per two miles. Fuel costs
per mile are therefore:
Shown below is a comparison of two identical
40 tonne lorries engaged on British domestic work, covering a
typical 2,000 miles per week. One is a Dutch registered vehicle
running on Belgian purchased fuel, the other a British vehicle
fuelled by British purchased diesel.
| Dutch truck | British truck
|
VED Holland (£610 per annum)
£11.73 per week
| VED Britain (£3,950 per annum)
£75.96 per week
|
Fuel cost (2,000 miles @ £0.19)
£380.00 per week
| Fuel cost (2,000 miles @ £0.34)
£680.00 per week
|
| Total £391.73 per week | Total £755.96 per week
|
This equates to a difference in operating costs of £364.23
per week! More than enough to wipe out any profit made by the
British lorry.
The Government has stated its plans to scrap the Fuel Duty
Escalator Policy, which was introduced by the last Conservative
Government, but dramatically increased by the present Labour Government
to raise fuel duty by six per cent above inflation at each Budget.
Gordon Brown has not said that there will be no further increase
in fuel duty. In fact he may raise this by more than six per cent
in his next Budget! Even if the level of duty remains the same,
British Hauliers will still suffer the same uncompetitive disadvantage.
The Fuel Duty Escalator, originally introduced in an attempt
to reduce fuel usage to protect the environment, is now in fact
causing more pollution! This is because Foreign and British vehicles
entering the country, bring with them cheaper foreign fuel. This
is not the low sulphur diesel readily available for purchase in
the UK, but ordinary high sulphur diesel, the type we used to
sell in this country. This foreign purchased fuel is obviously
causing more sulphur and particulate pollution!
If British diesel was cheaper than in Europe, Foreign and
British Hauliers would purchase it, thus benefiting our own and
Europe's environment and also the British Treasury.
British Hauliers, as essential fuel users, could be granted
an essential user rebate. A reimbursement of £0.30 per litre
would make UK diesel comparable in price to Belgian diesel. This
rebate could be claimed each quarter, similarly to the VAT system.
Furthermore, if it could only be claimed by legally Licenced Operators,
then this would make it impossible for "Cowboy Hauliers",
trading without an Operators License to claim this rebate, rendering
them uncompetitive.
Vehicle Excise Duty should be reduced to a comparable European
level. Foreign lorries using our roads should pay, as British
lorries have to pay to use their roads. A tax of around £10.00
per day could be levied and collected prior to their vehicles
leaving the ports upon entering our country.
The Government reluctantly agreed last year to talk with
Haulage Industry Representatives, and a Transport Forum was established.
This, however, only happened as a result of months of pressure
upon the Government in the form of peaceful demonstrations and
protests, and continuous lobbying. Unfortunately, this Forum has
not made the Government accept that the industry is in crisis.
In fact, they continue to deny there is a problem at all and have
now resorted to stalling tactics!
By contrast, the Conservative Party has listened to the Haulage
Industry. A positive, sympathetic response has been shown by many
Conservative Members of Parliament and Prospective Parliamentary
Candidates, who have made efforts to talk with their local Hauliers
and understand their problems. Meetings with Shadow Cabinet Ministers
such as Hon. Bernard Jenkin, MP, have been fruitful and a Shadow
Forum has been established.
If the Government fails to act on this situation, thousands
more jobs will continue to be lost to foreign competition. Thousands
of votes for Labour (many from traditional Labour voters) will
be lost at the next General Election. Many thousands of jobs and
votes have already been lost as a direct result of the Governments
complacent indifference to the Road Transport Industries plight!
The British Road Haulage Industry, widely respected as the
best in Europe, is the backbone of British Industry. However,
because of the crippling taxation forced upon us by the Labour
Government, experienced people are leaving the industry in droves,
and who can blame them? The Industry cannot afford to lose these
skilled people.
The Government must act now to halt this decline in our Industry.
All we ask is for a fair environment in which to compete! Surely
this is not too much to ask?
Ian Lacey
February 2000—Revised June 2000
| 
