A glitzy start, but what of transport's interests? 08 June 2010

Well, we certainly got parliamentary change – and considerably more than most bargained for. Yes, a hung parliament was no great surprise. But a coalition of the Tories and Liberal Democrats? And now we have David Cameron's and Nick Clegg's love-in, and their new face of politics, apparently forged in a spirit of co-operation 'in the national interest'. No one doubts the pressing need, and few challenge the refreshing approach – as long as co-operation doesn't turn into missed opportunities.

As for the new man at the helm of the Department for Transport, it's Phillip Hammond, and the Transport Secretary has wasted little time in setting out some of his agenda for the future of the UK's transport and logistics sector. Hammond is already on record saying that the new government will seek to bring in a fuel price stabiliser, ultimately leading to reduced tax, should the price of oil rise too high. He has also ruled out the introduction of road pricing, one of the central planks in the Liberal Democrats' pre-election manifesto.

However, there's no word so far on any move to reverse the previous government's decision to go ahead with the April fuel duty rise (albeit staggered) or to undo its abolition of the 20p/litre biodiesel duty differential – which the FTA (Freight Transport Association) estimates will together cost truck operators, on average, around £900 more per vehicle per year.

Given the coalition's rhetoric around green policy, there ought to be some room for hoping that the biofuel tax hike may yet be revoked – not least because it flies in the face of their low-carbon transport aspiration, and makes current moves by hauliers to ramp up biodiesel consumption practically pointless. However, if we're to take our cue from the coalition's much vaunted programme for government, there's precious little sign of such a move.

Despite the big build-up that document was given, it's remarkably thin on detail and even thinner on encouraging noises for the road transport sector. Indeed, the only relevant sentences read thus: "We will mandate a national recharging network for electric and plug-in hybrid vehicles"; and "We will work toward the introduction of a new system of HGV road user charging, to ensure a fairer arrangement for UK hauliers". The rest of the document relates solely to rail.
So, there's nothing on setting up a national network for the most promising biogases (particularly, CNG – methane). Nothing on introducing a new RCP (reduced pollution certificate) scheme to incentivise uptake of Euro 6 and/or new technology (hybrid, dual-fuel etc) engines that would, in turn, increase manufacturers' volumes, and reduce costs and our ongoing dependence on fossil fuels. And nothing on bringing forward plans to trial the introduction of LHVs (longer heavier vehicles) on the UK's road network – again to cut costs and emissions.

Creating a so-called green investment bank for recharging may eliminate one barrier to electrics and plug-in hybrids, but it will do little to ameliorate their high purchase price. Likewise, introducing what amounts to a tax on foreign lorries will be widely welcomed – just as long as it's cost neutral for UK operators, compared to their foreign counterparts. But that would mean either lowering fuel duty or vehicle excise duty. And there's no mention of either of those yet.

Author
Brian Tinham

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