Supplementary memorandum submitted by
the Confederation of Passenger Transport
A COMPARISON OF THE COST OF COACH OPERATIONS
ACROSS THE EU
The attached table shows how the cost of diesel,
labour and VAT varies across the EU.
Diesel costs about 70 per cent more in the UK
than across the EU (on average). The reason for this is that the
duty is significantly higher in the UK (70 per cent of the price),
than across the EU (50 per cent on average). (Source: IRU and
EU Oil Bulletin).
Labour costs about 30 per cent less in the UK
than across the EU. This is partly because of lower indirect costs—such
as employers' social security contributions. (Source: Europe in
Figures, 2000, Eurostat. Costs relate to average industrial labour
costs. Indirect costs relate to employer's social security contributions
and other costs. 1996 is the latest year for which comparable
data is available).
VAT is 0 per cent for domestic coach travel
in the UK, compared with an average of 8 per cent across the EU.
(Source: IRU. The table shows the main domestic and international
rates in each Member State, although there are further rates and
rates per passenger kilometre in some countries).
The experience of operators obtaining comparison
quotes for new coaches from continental suppliers suggests that
the cost of new coaches is significantly higher in the UK than
in other EU countries, although no published data is available.
Overall, the UK suffers from higher diesel and
new vehicle costs, but benefits from lower labour and VAT costs.
November 2000
VARIATIONS IN DIESEL AND LABOUR COSTS AND
VAT ACROSS THE EU
| |
Diesel prices (2000)
| Labour costs (1996)
| VAT on coach transport (2000)
|
| | Euro
per
100L
| Index
(UK=100)
| Duty as
% of
price
| Euro
per
hour
| Index
(UK)=100)
| Indirect
costs as %
of total
| Domestic %
|
Inter-
national % |
| UK | 1,161 |
100 | 70%
| 13.4 | 100
| 16% | 0.0%
| 0.0% |
| Austria | 636
| 55 | 46%
| 24.6 | 184
| 30% | 10.0%
| 10.0% |
| Belgium | 645
| 56 | 45%
| 25.1 | 187
| 33% | 6.0%
| 6.0% |
| Denmark | 698
| 60 | 49%
| 23.3 | 174
| 8% | 25.0%
| 25.0% |
| Finland | 663
| 57 | 46%
| 19.7 | 147
| 25% | 8.0%
| 0.0% |
| France | 687
| 59 | 57%
| 22.5 | 168
| 33% | 5.5%
| 5.5% |
| Germany | 665
| 57 | 57%
| 26.5 | 198
| 26% | 16.0%
| 16.0% |
| Greece | 542
| 47 | 46%
| 8.9 | 66
| 23% | 8.0%
| 8.0% |
| Ireland | 684
| 59 | 48%
| 13.9 | 104
| 17% | 0.0%
| 0.0% |
| Italy | 728 |
63 | 52%
| 18.3 | 137
| 34% | 10.0%
| 0.0% |
| Luxembourg | 574
| 49 | 44%
| 20.0 | 149
| 15% | 3.0%
| 0.0% |
| Netherlands | 694
| 60 | 51%
| 22.3 | 166
| 24% | 6.0%
| 6.0% |
| Portugal | 533
| 46 | 46%
| 6.1 | 46
| 25% | 5.0%
| 0.0% |
| Spain | 585 |
50 | 46%
| 14.9 | 111
| 26% | 7.0%
| 7.0% |
| Sweden | 696
| 60 | 51%
| 19.5 | 146
| 29% | 12.0%
| 0.0% |
| EU15 average | 679
| 59 | 50%
| 20.3 | 139
| 25% | 8%
| 6% |
| 
