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Truckers unite to fight government fuel tax policy

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18th Nov 2005
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The Road Haulage Association (RHA) and the Freight Transport Association (FTA) have clubbed together to seek advice on the legal standing of the government's fuel tax policy.

In their report, which is being presented as written evidence to the Burns Freight Taxes Inquiry, due to report later this month, the two associations are presenting seven potential legal arguments. And as well as looking at national law, they are also looking at EU law.

James Hookham, policy director at the FTA said: "Both associations are leaving no stone unturned in their quest for a legal fix to the problem of high fuel taxes. The legal investigations being carried out for us will help give us confidence on the selected avenues that we decide to pursue on behalf of our members."

The key points are:
* Reverse discrimination ' is the government guilty of imposing unfair tax burdens on its own citizens, leaving foreign hauliers at a competitive advantage?
* As the government does not charge foreign operators for the use of British roads, is it guilty of using taxpayers' money to subsidise the wear and tear caused to the network, effectively providing a financial subsidy to foreign operators?
* Proportionality is a growing legal concept. It poses the question of reasonableness ' has the government exceeded what is reasonable in its pursuit of managing demand for transport through taxation of fuel?
* Is the European Commission guilty of failing to enforce a harmonised level of fuel duty across the EU, given the statements made in directives and other policy documents?
* Should the volumes of diesel fuel that can be brought into the UK in vehicle fuel tanks aboard ferries and trains be limited on the grounds of safety and/or national security?
* Cabotage limits ' what are the implied limits and conditions imposed on foreign operators wishing to undertake national transport within the UK?
* Given the crisis that engulfs the British road haulage sector, have all the conditions been met whereby operators may work together to cartelise their rates and services, subject to notification and approval by the Department of Trade and Industry and the European Commission?

Of course, there will also be legal arguments against these key points and it could take years to determine them but Karen Dee, director of policy at the RHA said: "We need to be clear that our own Government and the European Commission are fulfilling their commitments to ensure that that competition is fair."

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