The fate of freight
The last few weeks have seen dramatic change and some uncertainty in our political life. I welcome the new coalition government as the best way of securing something positive out of the election result the British people delivered. But RH, like other businesses, is still trying to understand what this extraordinary outcome will mean for us.
In the freight industry we are particularly interested to hear about the coalition’s policies on transport-specific topics such as fuel duty, especially in the light of the Conservative manifesto which suggested the party would consult on a "fair fuel stabiliser" policy. This is a sensible, revenue neutral measure we have campaigned on for several years so I sincerely hope that it will come to fruition soon.
Decisions regarding privatisation of the road network, road pricing, longer trailers, cabotage restrictions on foreign trucks and the back dating of rates in port logistics facilities will all impact this company and our industry - which could well have wider knock on effects to businesses and consumers in general. I welcome the appointment of Phillip Hammond as transport secretary. His track record in business will surely hold him in good stead.
The freight industry is the backbone of the British economy, yet its importance in the day-to-day running of our country is regularly overlooked. The overwhelming majority of freight volumes in the UK are moved by road. Only 8 per cent is moved by rail. Rail has little relevance to European shared user transport because differences in bridge heights (among other issues) mean there is little scope for fast, reliable and cost effective inter-modal transport. The movement of freight by road remains overwhelmingly the most important means by which UK goods are brought to their market whether in this country or outside the UK.
Our industry employs 2.3m people and contributes around £74bn to the UK economy each year. Particularly in the midst of the economic crisis this lifeblood activity is vital. Yet our sector has been a low-level priority for previous governments and has had three fuel duty rises in this recession when other industries have received state support.
Investment in road infrastructure is key. I have frequently argued that if we are to be heavily taxed then at least those taxes should go back into creating a more efficient and cost-effective transport system. On a local level the decision to defer the funds available for the widening of the A453 is a particularly disappointing example. As the southern gateway into Nottingham it is vastly inadequate, leaving visitors and goods vehicles trying to get to the city frustrated and delayed. We have campaigned on this issue for 25 years and we are still waiting for common sense to prevail and the funds to go with it.
Rail may be regarded as the future of transport by some but the present proposals for rail have little relevance to the freight industry. So road transport will remain the primary method of moving goods into, out of and across the UK and as such our sector deserves more positive encouragement and recognition. We are ready to work tirelessly with a government that values our sector to ensure we have modern infrastructure, safe working, secure employment and a strong commitment to reducing carbon emissions. So let’s get down to work in everyone’s interest.
Ian Baxter is managing director of Nottingham-based RH Freight
