Memorandum submitted by the Road Haulage
Association Ltd (O64)
INTRODUCTION
The Road Haulage Association (RHA) was formed
in 1945 to look after the interests of haulage contractors in
various areas of the country, in effect, amalgamating local organisations
that had been established. The Association has subsequently developed
to become the primary trade association representing the hire-or-reward
sector of the road transport industry. There are now some 10,000
companies in membership varying from major companies with over
5,000 vehicles down to single vehicle owner-drivers. As such this
response concentrates on the needs/interests of the commercial
road transport operator.
Background to the industry
The road haulage industry plays a pivotal role
in the UK economy carrying over 80% of all domestic freight. In
2002 this amounted to:
— 1,019 million tonnes carried in hire-or-reward
vehicles;
— 608 millions tonnes carried in own-account
operators' vehicles;
— a total of 1,627 million tonnes of
goods going by road;
— 149 billion tonne kilometres on road
transport; and
— an average length of haul of 46 kilometres
for rigid vehicles, 133 kilometres for articulated vehicles and
92 kilometres as an overall average.
There are around 52,000 businesses in the industry
and between them they operate some 425,000 vehicles over 3.5 tonnes
gross vehicle weight. There are around 104,000 holders of operating
licences, some for own-account transport and others for the provision
of hire-or-reward services. There are around 52,000 businesses
in the industry and between them they operate some 425,000 vehicles
over 3.5 tonnes gross vehicle weight. It is worth noting that
20 years ago approximately 500,000 vehicles carried a smaller
volume of traffic demonstrating the very considerable efficiency
gains that the industry has made. The industry employs about 500,000
drivers together with a similar number of ancillary staff in warehouses,
workshops and offices.
Reform of sugar regime
Although on the face of it the proposed reform
of the sugar regime would appear to have little to do with road
haulage, the RHA would point out that over 1,500 UK based haulage
companies are actively involved in the transportation of sugar
based products. Any reduction in the market value of the raw material
(in this case sugar beet) that affects the UK sugar industry undoubtedly
will have a knock-on impact on our members' businesses. Thus,
whilst the RHA does not seek to comment on the merits, or otherwise,
of arguments in favour of reform, we must draw attention to the
potential impact on UK road haulage businesses.
In view of this the RHA believes that, if it
is decided that changes to the current regime are necessary, then
the Government should implement a policy that minimises any potential
damage to the UK sugar and road haulage industries.
The UK sugar industry believes that the policy
that best achieves this would have the following features:
— the maintenance of supply management
through quotas for domestic EU sugar and isoglucose production
and equivalent measures for the preferential (ACP and LDC) developing
country suppliers with access to the EU market;
— production quotas to be made flexible
so that, in conjunction with a Community restructuring mechanism,
production can be moved to better suited and more efficient areas,
while the overall total of European production has to be reduced
to take account of external pressures;
— prices will need to be reduced to
take account of the EU's WTO commitments;
— compensation should be paid to sugar
beet growers in line with the way in which CPA reform measures
have been applied for other agricultural products;
— the contentious area of subsidised
quota exports should be addressed, but in so doing, the position
of the UK industry as being in balance between supply and demand,
should be recognised; and
— the changes should be phased in gradually
to allow the sector time to adjust. A timescale similar to that
agreed for dairy (ie about 10 years) would be appropriate.
The UK sugar industry believes that an approach
such as this would offer the best solution for stakeholders in
the industry and would encourage efficient industries to flourish.
In addition they believe this would ensure that the burden of
reform would be shared fairly between participants in the industry.
As a result, this approach has the support of the RHA.
1 April 2004
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