RHA and FTA unite in Treasury approach to highlight plight of UK hauliers28 September 2007
On Friday 28th September, the Chief Executives of the UK's leading transport associations, the Road Haulage Association and the Freight Transport Association, delivered a declaration and letter to the Chancellor of the Exchequer at HM Treasury on behalf of their members.
"This declaration was delivered on behalf of more than 20,000 road transport operators who make up the membership of our two associations," said RHA Chief Executive Roger King.
"We hope that today's declaration (see below) will have sufficient impact for the Chancellor to consider his proposals to increase fuel duty by 2ppl on Monday 1 October and further increases scheduled over the next 18 months.
"The Road Haulage Association produces a weekly fuel price bulletin based on fuel price information gathered by the membership. Today's alert shows that the average price of diesel now stands at a record high of 81.38 pence per litre (ex VAT) and we are already hearing from members that their suppliers are telling them to expect more increases in the next few weeks.
"It is therefore vital that the Chancellor pays heed to our plea to abandon Monday's 2 pence per litre fuel duty increase. We are not just acting on behalf of our members, this is in the interest of the country as a whole because the responsibility for running an efficient and cost effective modern economy lies with the providers of road transport. Ours is an industry that desperately needs an incentive to continue; not a deterrent."
Diesel is by far the hauliers' largest variable cost and has already risen by 10.05% this year. UK operators are still paying the highest levels of fuel duty in Europe; approximately £13-15k more (per articulated vehicle) than their counterparts in Continental Europe and Ireland.
Picture caption, left to Right, RHA Chief Executive Roger King, RHA National Chairman Willie Oliver, FTA President Andrew Haines and FTA Chief Executive Theo de Pencier on the steps of HM Treasury, prior to presenting the joint declaration.
ROAD HAULAGE ASSOCIATION / FREIGHT TRANSPORT ASSOCIATION
Joint Declaration on Fuel Duty presented to the Chancellor of the Exchequer on 28 September 2007
This Declaration is presented on behalf of over 20,000 goods vehicle operators.
The Government has announced an increase in fuel duty of 2 pence per litre from 1 October 2007. In view of the record price of oil, currently about $80 per barrel, and the consequent high price of diesel fuel of about 81p per litre (excluding VAT) the RHA and the FTA call upon the Chancellor to
1. Postpone the fuel duty increase proposed for 1 October, while high world oil prices persist.
2. Introduce a fuel duty rebate mechanism for hauliers and other essential vehicle operators to bring UK fuel duty burdens into line with the EU average.
3. Introduction of a UK vignette or similar to assist in compiling a database of the identity, ownership and compliance record of all foreign-registered goods vehicles entering the UK to allow effective enforcement of UK driving regulations and vehicle safety standards on visiting vehicles,
4. Develop a mechanism to allow separate fuel duty rates to be set for goods vehicles and other road users to reflect:
a. the vital role played by road haulage and freight transport in the functioning and delivery of the UK economy
b. the intensive competition pressures from foreign operators on parts of the road haulage sector
c. the need for investment in new vehicles and technology to maintain high safety standards and reduce the carbon footprint of road transport
Ten ways to better spend the 2p fuel duty increase27 September 2007
The increase in Government fuel duty from Monday (1 October) will not only put up pump prices to over £1 per litre, but will hinder efforts to reduce greenhouse gas emissions from the transport industry, says the Freight Transport Association.
‘The planned increase in fuel duty by 2p per litre from 1 October will cost goods vehicle operators about £1,500 per year for every 100,000 miles they cover,’ says FTA’s Policy Director James Hookham. ’With many of the larger articulated vehicles doing over 70,000 miles per year - indeed some do up to the full 100,000 miles – the annual increased bill for the industry is over £130 million. As this is unlikely to be recovered from customers in higher haulage rates this year, it will cause a real drainage of cash from smaller businesses which could have been better spent on efficiency and the fuel saving measures which the Government is calling on the industry to take.’
FTA has compiled a list of the top ten greener ways of spending the money instead of giving it to the Treasury in higher fuel duty. So what would £1,500 buy a lorry operator anxious to do his bit towards reducing his carbon footprint?
Two drivers on the Government approved Safe and Fuel Efficient Driver training course (SAFED). Average carbon dioxide savings of seven per cent per driver per year.
Ten vehicle inspections for roadworthiness and maintenance conformity. A well maintained vehicle could save over £2,500 per year over a poorly maintained vehicle.
A two-day training course for a manager to become the ’Carbon Champion’ of the company and initiate actions to reduce carbon dioxide emissions.
Eight copies of Carbonfta, a new information service from FTA providing detailed guidance and advice on recording, reporting and reducing carbon dioxide emissions from freight transport.
A review of vehicle routes and schedules at three depots to optimise journey length and frequency and reduce overall mileage.
Five members of staff attending a one-day briefing on the major legislative and operational issues affecting hauliers in 2008, including how to record, report and reduce carbon dioxide emissions.
A complete compliance package to make a company’s road transport operations safe, sound and environmentally friendly – comprehensive advice for the transport manager and the driver.
An environmental audit of two depots providing specific advice on further reductions on environmental impact of depot operations.
Seven hours’ training for 15 drivers – legal compliance, fuel saving, environmental policy etc.
Optimising vehicle performance by investment in environmental improvement measures.
Almost everything which we use and consume every day of the year is the product of a lorry journey. Lorries contribute over £4 billion in taxation – well over their costs to the road system. Taxing them even further is bad news for everybody.
Transport Minister for FTA Dinner26 September 2007
Parliamentary Under Secretary of State for Transport Jim Fitzpatrick MP will be the principal guest speaker at the Annual Dinner of the Freight Transport Association to be held at the London Hilton, Park Lane on Tuesday 6 November.
The event will be hosted by FTA President Andrew Haines.
Entertainment will be provided by Match of the Day pundit, former Liverpool and Scotland star Alan Hansen.
Tickets are priced £150 plus VAT each, in tables of ten.
For further information or to book places call Amanda Cooper on 01892 552220 or apply online at http://www.fta.co.uk/services/events/annualdinner/2007/