Exclusive - Burns Inquiry scores
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No rise in fuel taxes for 12 months and £2 million to help clamp down on rogue foreign hauliers herald a new willingness from government to work with the road haulage industry towards a brighter future.
The treasury has recognized the work of the RHA/FTA led Burns Freight Taxes Inquiry in its pre-budget report. The government says it welcomes the inquiry and agrees that an efficient haulage industry is important for a productive economy.
The inquiry aimed to focus the government's attention on the issues facing the industry and has prompted a public invitation from government, to key industry associations, to participate in a joint task group, which will work to place the findings of the Burns Inquiry in that broader context.
A full version of the pre-budget report can be found on the Treasury website. What follows are extracts from yesterdays report:
'One sector that has been particularly affected by the recent volatility in fuel prices is the haulage sector. In light of this, the leading industry associations commissioned the Burns Inquiry to examine the impact of fuel costs, foreign competition and freight taxes on the UK haulage industry, which reported at the end of November.
'The Government welcomes the inquiry, which has gathered valuable evidence on the industry's views of these issues. However, there are also a number of other important challenges facing the haulage sector.
'The Government is therefore inviting key industry associations to participate in a joint task group, which will work to place the findings of the Burns Inquiry in that broader context.
'The Government welcomes the publication of the findings of the Burns Inquiry into fuel costs, foreign competition and freight taxes, and agrees that an efficient haulage industry is important for a productive economy.
'The task group will also assess how the pressures identified by the Burns Inquiry compare with those facing other sectors which are open to international competition or have experienced rising input costs. There are also a number of other important issues that affect the efficiency of the haulage industry and these will be examined by the proposed joint task group, including:
• workforce pressures: recruitment, retention, wage costs and skills are key drivers of competitiveness and productivity;
• fair and effective enforcement: consistent enforcement of road safety and other regulations, for hauliers of all nationalities operating in the UK, is critical in ensuring that a minority of operators do not gain an unfair competitive advantage by breaking the rules;
• regulatory costs: minimising the administrative costs of complying with regulations will further assist those who wish to invest in improving their service, while streamlining the regulations themselves where possible allows hauliers to be more flexible in responding to changing conditions;
• promotion and sharing of best practice through the industry: it is apparent that some firms are better able to respond to competitive pressures than others. Identifying best practice, and trying to reduce barriers to sharing it more widely, could help to improve efficiency across the industry.
'Alongside the findings of the Burns Inquiry, the evidence gathered by the joint task group will help to inform future decisions on how to ensure that the sector continues to fulfil its important role in the UK economy.
'In the meantime, to ensure fairer enforcement of UK weight regulations on both domestic and foreign lorry operators, the Government will invest £2 million to fund "Weighin-Motion" sensors at up to 20 locations around the UK, including key ports, following successful trials of the technology.
'These sensors will allow better targeting of enforcement activity and help identify locations and times when offences are most common. Fairer enforcement for hauliers of all nationalities will be further strengthened by the enabling provisions contained in the Road Safety Bill (currently before Parliament). These provisions will allow enforcement agencies to take a cash deposit from overseas hauliers who commit offences. Further, as part of engagement with industry the Government will shortly be undertaking a consultation on proposals to simplify the operator licence regime to lower hauliers' transaction costs and give them more flexibility.'
