Eurovignette road toll for haulage costs parity, not fuel duty cuts

Friends of the Earth Cymru (FOE Cymru) have responded to calls by Brynle Williams and other fuel protesters for 'parity with Europe' on haulage costs by calling on Government to introduce the Eurovignette road toll which would charge foreign hauliers for using UK roads. The environmentalists say that reducing fuel duties, the fuel protesters preferred option, would only damage efforts to improve fuel efficiency and reduce UK emissions of greenhouse gases which are causing climate change.

FOE Cymru point out that the much publicised 'threat' to British hauliers from foreign operators tanked up on cheaper foreign diesel is exceedingly small (1). The group say that when foreign road tolls and excise duties are considered along side fuel duties there is little disparity in haulage costs between the UK and abroad, and even that would be neutralised by the 'vignette' or road toll.

The environmentalists support the recent House of Commons Transport Committee's conclusion that UK diesel duties should not be lowered as HGV's do not yet pay all their environmental and social costs (1). Such costs include a climate change charge. However, proportionate reductions in VED should be made if and when the Eurovignette levy is introduced to offset the levy on UK hauliers. FOE says that overcapacity in the haulage market is the painful problem and a Government package to help marginal operators to leave the industry should be considered.

Neil Crumpton, transport spokesperson for FOE Cymru and member of the Welsh Transport Forum said:
"Despite growing concerns about climate change, the UK haulage industry has brazenly made a huge national campaign out of what is a paper thin argument about parity with foreign hauliers and cheaper fuel prices. Only 0.06% of domestic freight is carried by foreign hauliers and the introduction of the 'Eurovignette' system which would charge foreign hauliers for using UK roads would address any parity calls. It is overcapacity in the haulage industry not foreign competition that is the root problem and the solutions lay outside subsidising diesel fuel which would only undermine efforts to tackle the growing death and destruction wrought by climate change".

Notes

1) House of Commons Transport Sub-Committee 15th Report on 'The Road Haulage Industry' (reported in ENDS Report August 2000 page 28). The Committee found that just 0.06% of domestic haulage is conducted by foreign operators, and that only three cases of UK hauliers losing business to overseas competition were substantiated. The Road Haulage Association (RHA) had to concede that the threat from foreign hauliers was a future possibility not an actuality. Both the Committee, the RHA and indeed FOE support the introduction of the Eurovignette road use levy to level even the small national differences in overall roadfreight taxation.

Also see DETR NERA Report (July 2000 ? Press Released Sept 2000) on track, environmental and other costs of HGV's.