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The Road Haulage Association will lobby the government to allow timber hauliers to use red diesel while they are loading wood in forests - or the sector will be devastated by the economic downturn. Rising fuel prices are hitting the timber industry particularly hard as vehicles must be left running in order to operate the cranes. The RHA says that as a result, timber hauliers' fuel costs are 55% compared with 40% in other industries, and many companies  are on the brink of going bust.

According to the RHA, the global economic slowdown has caused a downturn in wood exported to America for house building, resulting in oversupply and a 25% price reduction in the cost of the product. The trade association is calling for HM Revenue and Customs to permit timber hauliers to use dual-fuel tanks, storing red diesel for use when the cranes are in operation.

Recently, the RHA met with the Confederation of Forest Industries (Confor) to discuss its plan and get its backing. RHA Scotland director Phil Flanders says: "We can't do it on our own. It's just seen as hauliers moaning. And the government isn't keen on giving anything to anyone. It comes up with nos and don'ts and can'ts, but if these companies go out of business, they will have to pick up the tab."

Confor executive director Chris Inglis adds: "If some hauliers are going out of business or losing contracts because of cost of production, it's bad news for our industry.  Once capacity is lost, it's very difficult to get it back."