Policy Summary September 2008

Fuel duty

The price of oil underwent a significant fall during August. After peaking at $147 a barrel it came down to around $112, but by the end of the month had increased again to around $117. As usual many influences were cited as impacting on the price - the stock situation in North America, the hurricane season, the political impasse between the US and Russia as a consequence of Georgia and a reduction in demand in the Far East.

In retrospect, the Chancellor's announcement in mid-July that the proposed 2p per litre increase planned for October was to be abandoned seems increasingly important. With the world price falling by over $30 a barrel, and the pump price falling by over 15p per litre, it is possible that had the Chancellor waited until September, he may have decided to proceed with the increase on the basis that prices had fallen so substantially relative to the 2p increase in duty proposed.

FTA continues to monitor the situation carefully and remains in discussion with PricewaterhouseCoopers regarding further work on how duty on commercial vehicles may be decoupled from cars. The dialogue with the Government continues, although the holiday month of August has reduced activity and the availability of key individuals, whether politicians or officials.

For more information on FTA's fuel duty campaign, please click here.

Rail

During August, FTA told the Office of Rail Regulation (ORR) that it must ensure that the needs of rail freight are not disadvantaged in Network Rail's plans to alter the way in which it carries out engineering work. The key concern of FTA was the plan to move engineering possessions, that is the time the track is out of action for essential repair or development work, from weekends to weekday nights. FTA acknowledged that moving away from weekends would benefit passengers but it must not be done so at the inconvenience of essential freight movements. FTA said that it would work closely with the ORR in order to protect freight interests.

FTA also joined with the Rail Freight Group in warning that the demand for rail freight services would outpace the available capacity to carry freight on the network as presently planned by 2030. Key problem routes include London to Scotland and Southampton to the West Midlands. FTA said that with rail playing an increasingly important role in moving goods from ports then increased investment in new capacity was essential.

For more information, please click here.

Cotswolds lorry ban

FTA has told Gloucestershire County Council that its proposals for a substantial lorry ban zone in the area of the Cotswolds is unworkable, unenforceable and unwelcome. FTA says that the proposed scheme would fail to produce any environmental benefits because lorry traffic in the area is already very low and a collection/delivery exemption would mean that there would only be a very small reduction in the number of vehicles using the route. However, the cost and inconvenience of diversion for those vehicles would be relatively substantial. At the same time the aspirations of local residents looking for a totally lorry-free environment would inevitably be disappointed. FTA is encouraging affected members to submit their views to their Regional Freight Council.

For more information on Regional Freight Councils, please click here

Mirrors - new compliance guide from FTA

FTA has published a compliance guide relating to the retrofit programme obliging operators to fit enhanced mirrors on vehicles over 3.5 tonnes registered since 1 January 2000. The new mirrors are of particular interest to operators working in an urban environment - there have been a number of fatal incidents in London in respect of pedestrians, cyclists and motorcyclists who have placed themselves on the inside of heavy lorries in the driver's blind spot.

To read the compliance guide, please click here.

Drivers' hours - review of UK domestic rules

The Department for Transport is carrying out a review of the legislation which applies to operators and drivers covered by domestic driving hours rules. The rules cover drivers not included in the EU drivers' hours directive and apply mainly to essential public services carried out by the utilities sector, highways maintenance and local authorities. FTA will be submitting evidence to the review.

For more information on the review, please click here

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