When it comes to transport, Gordon Brown can't make up his mind if he for protecting the enviroment or not. Take bio diesel for example. Many operators are interested in using this and in Germany some operators using 100% bio diesel. It the UK it has a reduced tax level but that still only takes it to same price or more than normal diesel. That is hardly an incentive to use it particularly as vehicles have to be serviced more often.

But the Government has done something to encourage operators to move to Euro 5 by renewing the Reduced Pollution Certificates that reduces VED for trucks that meeting Euro 5 standards. This will come into force from October 2007. This is sensible as until that time it is virtually impossible to ensure that SCR vehicles are actually using Ad Blue.

This will hit MAN as it is not going to have its Euro 5 EGR vehicle available until 2009. Scania will launch its Euro 5 EGR at the RAI show in the autumn and they should be available afterwards.

Daf in particular has been strongly pressing for incentives to move to Euro 5. The question is whether the incentives are large enough for operators to pay the extra for Euro 5. An operator may be able to say £500 a year on VED by moving to Euro 5 but that is reduced by the higher cost of a Euro 5 vehicle.

MAN does have SCR Euro 5 trucks in Germany but will be very reluctant to sell them in the UK as it has strongly supported EGR.
MAN will be hoping to persuade operators to buy Euro 4 vehicles with EGR.

The other question is whether customers will request the most environmentally friendly vehicles. Companies now want to be seen to be green and that could include their hauliers as well.

It is clearly good news that Government will triple the amount spend on targeted enforcement in the south east. But frankly the best thing the Chancellor could have done is keeping fuel duty the same for at least the next year and ideally reducing it down to continental European levels.