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| FTA welcomes EU cabotage concession |
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| Written by Vascoingles | |
| Saturday, 21 June 2008 | |
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The UK Freight Transport Association (FTA) has given a cautious welcome to a agreement reached at the EU Council of Transport Ministers in Luxembourg last week which proposes to allow member states to protect the interests of their domestic road transport industry by permitting them to "introduce protective measures in case of serious disturbances of the national transport market". In effect, explained the FTA, such a concession would enable the UK to introduce legislation which would prohibit contract work from being carried out by visiting foreign lorries. The FTA explained it had been concerned that the large differential in diesel duty between the UK and the rest of the EU would provide foreign vehicles with an unfair competitive advantage over the domestic fleet. According to the FTA, duty on diesel in the UK is twice the European average. FTA director of policy James Hookham commented: "(UK) transport minister Rosie Winterton and her team from the Department for Transport are to be congratulated on what they were able to achieve at the Council of Ministers meeting. "Had plans gone ahead for a complete liberalisation of the EU haulage market then we would have seen substantial and increased competition from the rest of Europe based on their lower operating costs, notably cheaper fuel due to lower diesel duty. This would undoubtedly have severely damaged the domestic haulage industry in the UK. However, the problem is not yet resolved as the European Parliament still needs to agree to this change. "If all goes well we now hope to see the Department for Transport introducing enforceable legislation in the UK limiting the extent of the work which foreign vehicles can do − probably very similar to the spot work they do at present. "The potential future problem has been postponed rather than eliminated, since it is clear that the European Parliament wants to see full liberalisation. As such, the long-term solution must be for the UK to make progress towards bringing diesel duty levels more in line with the EU average." Source: Freight Transport Association |
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