Fuel Protests - The Road Haulage Association Position
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The rise in fuel prices has once again put the spotlight on the road haulage industry and reports indicate moves by truckers to highlight their plight by staging protests outside UK oil refineries.
"It is worth reminding ourselves why hauliers feel obliged to recommence such protests" said RHA Chief Executive Roger King. "Of course fuel prices are a world issue but they are made worse in the UK by the exceptionally high levels of fuel duty. Even if the haulier manages to pass on the full cost of the increase, it can be up to 90 days later before he is paid. That is straining the industry's cash flow to breaking point. No wonder many hauliers are becoming increasingly desperate".
The RHA has campaigned long and hard over this issue.
"We are pleased that government has frozen fuel duty for the past few years, although depressed the Labour government proposes a September increase of 1.2ppl. That cannot go ahead if world prices are anywhere near today's level".
The RHA has also been involved in discussions over the proposed introduction of a Lorry Road User Charge which would offset the cost of road usage with a fuel rebate.
"This may offer a long term solution although there are huge questions remaining about its practical implementation, but it does nothing to assist with the present problem," said Roger King.
The RHA proposed an interim solution to government based on a formula for price stability whereby once world oil prices exceed a predetermined level the duty/tax on diesel for "O" licence operators would be reduced to compensate. "This could be done easily by substituting an element of fuel duty with an increased VAT rate. Thus VAT on diesel could be increased to a maximum of 25 per cent from 17.5 per cent rate at present. Sadly the government did not respond positively". The RHA then approached a solution in another way.
In its general election Hauliers Manifesto circulated to RHA members the Association has urged support of Alex Salmond MP's proposed amendment to the Finance Bill which seeks to establish a formula for a fuel price regulator. "Unfortunately this did not get considered before the general election" said Roger King. "But we have asked members to lobby all political candidates in order to garner support for future discussion".
The RHA supports peaceful protests that seek to highlight the difficulties hauliers currently face. "These should not involve the disruption of fuel supplies," said Roger King. "We need the political parties seeking votes to say how they propose to address this issue, but not via threats. In any case given the general election it is difficult to know who to talk to in government at the moment".
The Road Haulage Association - supporting the industry on which the UK depends.
Source: Road Haulage Association
"It is worth reminding ourselves why hauliers feel obliged to recommence such protests" said RHA Chief Executive Roger King. "Of course fuel prices are a world issue but they are made worse in the UK by the exceptionally high levels of fuel duty. Even if the haulier manages to pass on the full cost of the increase, it can be up to 90 days later before he is paid. That is straining the industry's cash flow to breaking point. No wonder many hauliers are becoming increasingly desperate".
The RHA has campaigned long and hard over this issue.
"We are pleased that government has frozen fuel duty for the past few years, although depressed the Labour government proposes a September increase of 1.2ppl. That cannot go ahead if world prices are anywhere near today's level".
The RHA has also been involved in discussions over the proposed introduction of a Lorry Road User Charge which would offset the cost of road usage with a fuel rebate.
"This may offer a long term solution although there are huge questions remaining about its practical implementation, but it does nothing to assist with the present problem," said Roger King.
The RHA proposed an interim solution to government based on a formula for price stability whereby once world oil prices exceed a predetermined level the duty/tax on diesel for "O" licence operators would be reduced to compensate. "This could be done easily by substituting an element of fuel duty with an increased VAT rate. Thus VAT on diesel could be increased to a maximum of 25 per cent from 17.5 per cent rate at present. Sadly the government did not respond positively". The RHA then approached a solution in another way.
In its general election Hauliers Manifesto circulated to RHA members the Association has urged support of Alex Salmond MP's proposed amendment to the Finance Bill which seeks to establish a formula for a fuel price regulator. "Unfortunately this did not get considered before the general election" said Roger King. "But we have asked members to lobby all political candidates in order to garner support for future discussion".
The RHA supports peaceful protests that seek to highlight the difficulties hauliers currently face. "These should not involve the disruption of fuel supplies," said Roger King. "We need the political parties seeking votes to say how they propose to address this issue, but not via threats. In any case given the general election it is difficult to know who to talk to in government at the moment".
The Road Haulage Association - supporting the industry on which the UK depends.
Source: Road Haulage Association
posted by Jon Fry at 5:52:00 PM
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