Transport and the economy

Memorandum from the British Vehicle Rental and Leasing Association (BVRLA)

1. BVRLA and its members welcome the opportunity to provide its comment on your inquiry into transport and the economy. The BVRLA is the trade body for companies engaged in the leasing and rental of cars and commercial vehicles. Its members provide transport mobility solutions to both businesses and individuals. Our members operate a combined fleet of 2.5 million cars, vans and trucks, buying nearly half of all new vehicles sold in the UK.

2. In light of the dramatic change to the UK economy and the subsequent major public expenditure cut backs we agree that it is vital that every pound is invested to maximise the benefit for Government and all road users.

3. We think it is highly probable that some local government may inappropriately chose to implement proposals such as workplace parking levies, or parking fines to help them raise revenue, without the intended objective of these policy instrument being achieved. It is also probable that we will see a cut in transport projects and capital expenditure that are necessary for the long term development of the economy instead of focussing on looking at improving efficiencies and cutting waste.

4. In terms of priorities for national transport spending we see the following as key:

- Maintenance of the networks – We note that road building is not a feasible solution when the economy is recovery out of recession, which means that maintenance of the existing road network is vital particularly if the Government wants to continue to reduce road accidents and improve road safety.

- Road infrastructure – Investment in road infrastructure can be used to promote economic growth. A good road infrastructure will help goods move efficiently and effectively and therefore businesses will look to invest and manufacturer their product in this country and boost employment. The Government needs to carefully consider any cuts in road infrastructure and the impact they may have on businesses in the UK in particular the costs of congestion and accidents which affect the operational efficiency of business.

- Hard shoulder running has previously been used as a way of expanding the road network without building more roads. There appears to be many positives from this type of approach and we would urge the committee to consider supporting further use of it to help support businesses and the UK work-force.

- Guidance to councils – With less priority being given to strategies for councils by central Government and regional bodies being removed, the role of central Government should be, we believe, to provide a clear national framework to help ensure there is a clear and consistent approach towards policies affecting motorist. If councils are considering their own local solutions such as low emission zones, congestion charge schemes etc it is vital that a level of consistency is in place to ensure motorists are not left confused. For example, if several low emission zones are in place they should not have different emission standards for entry as commercial vehicle users would need to be aware which cities they are able to travel in and which they are not in a clear and consistent manner. The same is true of congestion charge schemes, if there were several congestion charge schemes which each have different payment methods and hours of operations motorists would very easily send out confusing messages , which would defeat the intended purpose of getting road users to change their behaviour

- Lorry Road User Charge – The previous proposal for a lorry road user charge unfortunately turned out to be a highly complicated solution and the costs of implementation far out-weighed any benefits. If an alternative solution can be found which is tax neutral and helps with the objective of ensuring all goods vehicle freight users pay for their use of the road network then our members would no doubt be supportive

- Local congestion charging schemes – These schemes benefit those who live in the local area where the congestion charge scheme is in place as the money is reinvested in local transport schemes. There is little benefit for those who travel into the area where the scheme is in place. However local congestion charging schemes do encourage people to think about alternatives to car ownership which is where car rental and car clubs can play a role. Rental and car clubs continue to provide a cost effective and environmentally friendly alternative to car ownership, especially as the sector operates the cleanest vehicles therefore having a minimal environmental impact. Our members provide transport mobility solutions that are available from 1 hour to 1 month and are a viable alternative to owning a car in city locations where good public transport exists. If a car owner gives up their vehicle and chooses to rent a car only when needed research has shown:

· One rental car takes at least 5 -11 private cars off the road

· Rental cars emit only 63% CO2 compared to those they replace.

· Mileage is reduced by 53.6%

5. We trust our comments go some way to help shaping a good transport system for the future of long-term economic growth.

The BVRLA is the trade body for companies engaged in the leasing and rental of cars and commercial vehicles. Its members provide rental, leasing and fleet management services to corporate users and consumers. They operate a combined fleet of 2.5 million cars, vans and trucks, buying nearly half of all new vehicles sold in the UK.

· Through its members and their customers, the BVRLA represents the interests of more than two million business car drivers and the millions of people who use a rental vehicle each year. As well as lobbying the Government on key issues affecting the sector, the BVRLA regulates the industry through a mandatory code of conduct. www.bvrla.co.uk

September 2010