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EU dithering over cabotage

'Free Market' should mean exactly that shouldn't it? As the European Union celebrated its fiftieth anniversary this year it is worth remembering that  this was the EU's mission - to build a strong Europe with member states trading freely between each other without barriers.

So why the fuss about cabotage? The Council of Ministers favour  scrapping the current system which defines cabotage  as 'temporary' or 'occasional' work that is 'ad hoc, casual and circumstantial' The new proposal will allow an international haulier to carry out three domestic jobs within seven days in another member state. Supporters say this  will help end illegal cabotage because the burden of proof is on the haulier to show they are coming in on an international journey. At present it's the other way round - VOSA have to prove illegal cabotage for a UK-based prosecution to take place.

The cabotage report returns for a second reading when further amendments could be made. The Freight Transport Association opposes permanent contracts until operating costs, safety and enforcement standards are harmonised - a UK operator pays £3,327 for fuel to carry out the same work between Calais and Glasgow that costs a Polish operator just £2,679.

The European Commission will consider full liberalisation in 2014 but not before reviewing the state of the road transport market in 2013 to ensure fragile economies are not harmed.  The zealots, says Brian Simpson MEP, a supporter of the FTA campaign,  want free movement of everything and everybody.

Who will win? The FTA's dream of harmonised costs and conditions must surely be a long way off and certainly unrealisable before 2014. The 'three in seven' proposal  provides some clarity but it opens the door to an operator with 20 trucks carrying out 60 UK jobs each week, at a cost that imperils the existence of home-grown hauliers.  The ball may land at the feet of transport users. Do they want a strong UK haulage industry where service may have to be considered above price or do they want to take the cut-price option and risk not having a choice in the future? In straitened economic times the temptation to save a few bob now may prove irresistible.

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This page contains a single entry from the blog posted on March 11, 2009 4:54 PM.

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