Urging the Chancellor to rescue the British haulage industry

Open letter from Daniel Kawczynski MP to the Chancellor of the Exchequer.

Rt Hon Alistair Darling MP
Chancellor of the Exchequer
HM Treasury
1 Horse Guards Road
London
SW1A 2HQ

22nd May 2008

Fuel Prices and the future of the British Haulage Industry

I find myself approached by increasing numbers of constituents about the matter of the inexorable rise in fuel prices; those involved in the haulage industry are perhaps the most concerned as they foresee a time in the near future where their businesses will become unviable.

In the space of little more than a year, hauliers have seen diesel prices in the UK rise by little short of 50 per cent - a cost it is proving impossible to pass on to their customers in full.

Those haulage companies who operate in Europe are able to take advantage of lower fuel prices on the continent, but this is not the bonus it appears to be, because of the shifting pound-euro exchange rate. This has also added approaching 50 per cent to fuel bills.

These businesses are unable to pass on fuel price increases to their customers, because they are in effect being held to ransom by the presence of Eastern European hauliers in the market. There are companies based in Eastern Europe who do not follow working time directives or tachograph regulations. Their vehicles are often in a poor, if not dangerous condition, and the lorry drivers are paid very poorly in comparison with British drivers.

Elsewhere in Europe, the haulage industry is treated as being a vital part of the national economy - for example, there are countries where hauliers receive rebates on fuel that they use. In the UK, the high fuel prices are matched by high road taxes and high insurance premiums and there are no subsidy schemes in place. The haulage industry is currently being expected to absorb the bulk of the wild increases in world oil prices, while the Government is pocketing the income from the higher VAT being collected.

Haulage businesses are already starting to be pushed out of business by fuel prices and other rising costs and I have constituents who will follow in their footsteps shortly unless prompt changes are made to the industry. I therefore urge you to find immediate and effective measures to protect the future of the British haulage industry.

I look forward to hearing from you.

Yours sincerely



Daniel Kawczynski MP
Shrewsbury & Atcham

23rd May 2008


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