Montgomeryshire Liberal Democrats

Transport jobs in Wales at risk from fee and duty hikes

Transport sector jobs in Wales could be at risk if plans to increase fuel duty and Government agency fees go through, says leading trade body the Freight Transport Association (FTA).

The FTA represents the interests of nearly 800 companies and their employees in Wales.

Lembit Öpik, Liberal Democrat MP for Montgomeryshire has signed up to the FTA's national Every Penny Counts campaign to call for a moratorium on both fuel duty increases and hikes in fees levied by the Department for Transport's executive agencies.

Commenting on the campaign, Öpik said:

"Freight company insolvencies doubled between 2007 and 2008, due in large part to increases in fuel duty.

"The Freight industry has contributed more than £11 billion to British GDP in 2007 alone, which demonstrates how much the economy relies on their service. During this recession, the Government must make sure that freight businesses do not go to the wall as a result of ill-timed policy decisions."

FTA figures show that the planned 1.84 pence per litre (ppl) increase in fuel duty, inflation-busting fee hikes and other discretionary levies will land businesses with an additional bill for £1,500 per truck. For those organisations running a fleet of vehicles, this soon adds up to the equivalent of someone's wages.

Lembit added:

"The logistics sector, which directly employs 2.3 million people, is faced with an eye watering nine per cent increase in fees levied by the Vehicle and Operator Services Agency, part of the Department for Transport, to test its vehicles. Despite inflation likely to go negative over the coming months, operators are being expected to find the extra cash at the same time as seeing levels of business reduce dramatically.

"Businesses in the transport sector operate to tight profit margins and are already struggling as a result of the recession. It is feared that with these discretionary increases in operational costs transport companies in the region will be left with little alternative but to lose staff just to survive. And to those who argue the environmental benefits of these higher levies, I would simply respond that we all want to see more eco-friendly transport in the future. But wrecking the vital transport infrastructure we've already got isn't the way to do it."

Notes to editor:

The link to Lembit's parliamentary question is http://www.publications.parliament.uk/pa/cm200809/cmhansrd/cm090119/text/90119w0016.htm#09011914006148

Early Day Motion (EDM) 994 on the campaign reads: That this House supports the goals of the Every Penny Counts campaign which is supporting jobs and businesses in the road freight sector; notes that the success of the British economy is dependent on the success of its logistics sector, which directly employs some 2.3 million people and indirectly supports the work of many millions of others; recognises that the current economic downturn has had a severe and highly damaging impact on the logistics sector, causing insolvencies in the sector to double from fourth quarter 2007 to fourth quarter 2008; notes with concern that increases in costs to the logistics sector's operations, such as increases to fuel duty and road vehicle testing charges are specifically targeting UK logistics companies that are struggling to stay afloat; and calls on policymakers to give greater priority to the impact of economic measures on the freight sector before more companies are forced out of business and more jobs are lost.

The £1,500 per truck additional burden on businesses is broken down as follows:

1.84 pence per litre rise in diesel duty from 1 April 2009

917.00

Loss of Reduced Pollution Certificate Vehicle Excise Duty incentive for Euro 5

75.00

Nine per cent increase in Vehicle & Operator Services Agency (VOSA) test fees

21.28

Loss of test lane capacity from VOSA stations

127.74

Above inflation increase in Driver Standards Agency (DSA) fees

1.40

Above inflation Driver & Vehicle Licensing Agency (DVLA) fees

N/A

Medical test fees for drivers over age 45

6.00

Additional staff training costs linked to Driver Certificate of Professional Competence

33.95

Unnecessary and erroneous ticketing of delivery vehicles by Civil Enforcement Officers

364.00

Total

1,546.37

The campaign is also supported by the Federation of Small Businesses, the British Vehicle Rental & Leasing Association and www.petrolprices.com.

For further information please contact FTA's media team on 01892 552255/01892 552253 or, out of hours, on 07985 874248 or 07818 450425.

A Facebook group has also been established to support the campaign. It can be found at www.facebook.com/group.php?gid=52505287514

The Freight Transport Association represents the transport interests of companies moving goods by road, rail, sea and air. FTA members operate over 220,000 goods vehicles - almost half the UK fleet. In addition they consign over 90 per cent of the freight moved by rail and over 70 per cent of sea and air freight.