RHA slams Lords report

Weybridge, UK, May 21, 2003 -- The RHA has strongly criticised a report from a House of Lords Committee as being "out of touch" and "demonstrating a misunderstanding of the way in which the freight industry operates."

The report suggested that European Commission proposals to "harmonise" duties on diesel used for commercial purposes would cause more environmental damage, increase traffic and harm the UK rail freight industry. It also suggested that the current fuel duty differentials "...do not serve to distort competition in the haulage market."

RHA Chief Executive Roger King said, "It is a pity that the Committee has chosen not to listen to those directly involved in - and therefore with a clearer understanding of - the freight industry. Our evidence to the Committee highlighted the severe difficulties that the UK industry is facing as a direct result of the unfair competition from foreign hauliers. When fuel accounts for up to one-third of total operating costs, even small difference in price can make a significant difference.

"The assertion that reducing fuel costs would lead to more traffic and damage the rail freight industry are also unfounded. There are already a large number of hauliers - foreign registered ones - who use fuel costing far less than current UK prices. The only sector that has suffered as a result are UK hauliers who are being undercut."

Note to Editors

The 24th Report from the Select Committee on the European Union entitled "The Taxation of Fuel In the European Union" was published today (21.05.03).

The RHA's evidence to the Committee is available at http://www.rha.net/.

Kate Gibbs, RHA Communications Manager on +44 (0) 1932 838 917 or +44 (0) 7979 531 451.