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It is patently unfair that UK hauliers continue to subsidise their Continental competitors, according to the House of Commons Transport Select Committee. The committee's Freight Transport Report for 2007-2008 argues that high taxation on UK hauliers through fuel duty means UK hauliers effectively subsidise foreign hauliers running on the country's roads.

Eight years after announcing plans for the Lorry Road User Charge, the committee is "astonished" that work on a vignette has been abandoned  with no recognition of the need for a replacement. It urges the Government to discuss the issue with the industry to develop a way forward.

The committee also challenges the Government's view that the issues affecting road haulage should be dealt with by the market. "This is not acceptable," the members say. "We believe the government should be more proactive." It suggests the Government should develop a clear plan for all aspects of the haulage industry, addressing the environment as well as the needs of the market.

The Freight Transport Association believes the report "hits the bullseye". External affairs director Geoff Dossetter says: "UK transport continues to face intense competition from foreign lorries working in the UK on cheap Continental fuel and operating on safety standards which are not acceptable in the UK." Road Haulage Association chief executive Roger King  adds: "The Government must stop pretending that there is no problem [...] shake off its inertia and announce clear measures to tackle the issues that we and the Transport Select Committee have so clearly identified."

A Department for Transport spokesman says: "The Government is not complacent. While responsibility for the provision of freight services and the management of supply chains in the UK rest with the private sector, the efficient and predictable movement of goods is central to the success of the UK economy - as highlighted by the Eddington Transport Study. "Last summer's White Paper set out the Government's plans for carrying double the current level of freight on the rail network."