April/May 2002

Technology 'ready for distance tax'

Telematics and tracking companies have been among the first to welcome proposals outlined in the Budget by Chancellor Gordon Brown to tax vehicles according to distance travelled, traffic congestion and time of day.

"The initiative is not only feasible, but could also bring significant additional benefits," says Richard Horsman, chief executive of telematics provider CybIT. And in the words of Steve Denison, managing director of APD Communications: "With the right technology, such a system can work."

 

CybIT's Richard Horsman cites research carried out by Cranfield Centre for Logistics and Transportation, which reportedly shows that CybIT's own "open telematics" solutions can save even small operators over £8,000 a year. According to one user, specialist haulier Wheyfeed, the biggest gains come from the ability to monitor congestion in real time and take avoiding action. It uses the Fleetstar system, recently sold to CybIT by Trafficmaster.

APD says that in the past it has adapted its INCA vehicle location system to capture road usage data for a similar system in New Zealand.

The Government's proposed scheme would come into force in 2005 or 2006. It has been broadly welcomed by organisations such as the Freight Transport Association.