Jan/Feb 2005

Goods vehicle operators could find themselves paying around 8.5p per kilometre under the UK Government's proposed telematics-based lorry road-user charging scheme, but could also look forward to a 23p per kilometre fuel rebate - raising the possibility that less fuel-efficient vehicles could become more attractive to operators.

Analysts poring over the detail of the latest revelations base this conclusion on a submission made in January by Customs and Excise director Mike Shipp to the Select Committee on Transport.

The main problem is that the tolls would be charged on a flat-rate basis, whereas fuel rebates would be given on the basis of actual fuel used. Even after taking account of the extra cost of buying more fuel, analysts reckon operators with less fuel-efficient trucks could end up in pocket.

Although telematics-based charging scheme is supposed to come into force in 2008, it has now emerged that it might be implemented in phases according to the category of goods vehicle, and not finally be applied universally until 2010 or 2011. Nevertheless, the Government is planning to introduce preliminary enabling legislation in the Finance Bill 2005.

 

Of the ten short-listed organisations tendering to implement the scheme, four have now dropped out, leaving six to battle it out for the final contract. But details will not be announced before the end of this year.

In a period during which developments in the LRUC saga came thick and fast, the close of last year saw the Freight Transport Association appointing consultancy PricewaterhouseCoopers to mount an independent review of the whole scheme. The FTA says it decided to do this in the light of "growing scepticism among road freight operators of the merits of the prospective scheme". A preliminary report was due in January.

The Government for its part has how published an official discussion document and questionnaire on the proposed scheme. In many respects, however, this serves as much to point out uncertainties in the scheme as to offer any reassurance to those affected.

The new document, Modernising the taxation of the haulage industry: lorry road-user charge, includes a 33-point questionnaire on the scheme, but limits itself largely to the detail rather than the principles behind it. It also exposes some of the puzzles confronting the lawmakers, such as how to define a "trailer" for the purposes of the scheme, or how to define main roads that are like motorways, but are not technically motorways.

Meanwhile, Professor Ian McKinnon of Heriot-Watt University, a long-time critic of the Government's elaborate telematics-based charging scheme, told the select committee he had sought input Customs & Excise under the Freedom of Information Act about why it thought his much simpler proposed system would not work. "I wish you joy with your enquiries under the Freedom of Information Act," the chairman commented.