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Government inaction fuels industry frustration

Thursday 13 September 2007 12:00

As Motor Transport reports this week, there are rumblings of discontent against the high (and soon to be higher) level of fuel duty and threats of a return to direct action. There is a growing sense of frustration, and in some cases anger, about fuel, taxes and the way the industry is treated by the government.

It would be easy, but unwise, to pass these protesters off as mere hot-heads or just the usual suspects. While most truck operators will not want to join a protest, many are frustrated by overseas vehicles using cheap fuel to do domestic work in the UK. There has been talk about a "Brit Disc" or vignette to ensure that overseas hauliers pay their fair share of the cost of using our road network.

But we are still waiting for the government to decide whether or not to introduce this. A decision is urgently needed. Additionally, the level of on-the-spot fines proposed looks to be set too low to have any deterrent effect against foreign law breakers. But currently the issue causing the most concern is the planned increase in fuel duty in the autumn.

Fuel duty is far too high and already puts UK industry - be it transport, manufacturing or agriculture - at a serious disadvantage to overseas businesses. This additional burden should not be put in place. The government will no doubt say that we should pass the costs onto customers. But often the customers themselves cannot bear an increase in costs.

Unless it is expressly written into a contract it is hard to extract these concessions. The situation now is not the same as in 2000 when fuel increased by 6% in real terms every year. But the government does need to be aware that the very real feeling of frustration, particularly over fuel duty, is rising.

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