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FTA calls on government not to 'greenwash' fuel tax increases

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26 October 2009

The Freight Transport Association has called on the government not to apply 'greenwash' fuel tax increases proposed by the UK Green Fiscal Commission (GFC).

The GFC, which was set up in 2007 and describes itself as an independent body of "experts from business, leading academics and senior MPs", published its final report today.

The report states: "It is  necessary for the prices of high-carbon fuels to increase if carbon emissions are to be reduced."

It adds: "Governments would be well-advised to bring about these increases through taxation, rather than leaving the task to unpredictable market forces".

GFC director Paul Ekins said: "This is not just about reducing emissions, but helping the UK to develop low-carbon competitiveness."

However, Jo Tanner, director of communications at the FTA, says that while it is "refreshing to hear advocates for environmental change propose progressive – not regressive – measures" politicians should not show a "propensity to hide revenue-raising exercises under a large green banner".

She continues: "The logistics sector is already working hard to lower its carbon footprint and to take advantage of all transport modes to move goods. It would be grossly unfair if this commitment was not matched by an understanding from politicians that commercial vehicles provide an essential  service."

Earlier this month, James Hookham, FTA managing director of policy and communications, warned that the haulage industry could face the "nightmare" of increased taxation and legislation unless it anticipates and influences government policies to combat climate change.

He has also called for road haulage and logistics firms to join a pilot community to establish a baseline for carbon emissions and carbon reporting in the road transport industry.


Christopher Walton
Email at christopher.walton@rbi.co.uk
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