Lorry firms condemn ferry haulage discount scheme 14/2/12
Island hauliers have hit out at the government’s enhanced discount scheme for lorries travelling on Western Isles ferries. The new initiative which is worth an extra £2.5 million was devised to ease the pain of large price increases when road equivalent tariff (RET) is withdrawn from commercial vehicles next month.
The government said there is no evidence that the huge RET savings over the past three years were passed onto shops nor resulted in lower prices for island consumers.
But transport firms warned that the impending ticket increases will have to be passed on to customers.
The controversy was caused by axing the RET scheme for commercial vehicles on island ferries. The initiative aims to equalise the cost of sea journeys to the expense of travelling by road. It is being retained for passengers and cars and extended to include smaller commercial vans up to six metres long.
Even under the improved haulage discount scheme lorries will still have suffer a price rise of up to 50% to travel on Hebridean ferries.
Haulage firms also face a review of the "costs faced by hauliers and the impact on the local economy" to investigate if the discounts are being passed on to shops and if the end customer receives lower prices for imported goods.
Hauliers have denounced the deal as "smoke and mirrors" and urged the government to retain the present road equivalent tariff (RET).
Western Isles Council wants to set up a task group to fight the price rises when it meets with hauliers tomorrow (Wed).
David Wood of Woody’s Express said: "The SNP government and their local representatives are twisting in the wind on this issue. After weeks of denying that their flawed ferry pricing policy would take millions of pounds out the islands’ economy the Government has just conceded that they’ve found £2.5 million pounds of "transitional relief" for islanders.
"This "transitional relief" represents a slow drawn out death for our economy. The withdrawal of support still represents a brutal blow for our communities, in reality island customers will have to find the equivalent of £ 2.5 million, every year, to make up for the removal of support.
"The SNP Government constantly fail to recognise that this is not a "hauliers issue" but a matter for every man, woman and child in our islands – our campaign must continue and it most certainly will."
Gail Robertson of Benbecula-
"The level of support available for commercial traffic for islands is being greatly
reduced. Mr Brown keeps referring to hauliers and the prices they will pay -
"The OHTG is meeting with Western Isles Council this week to see how we can win more concessions for our islands. We have got momentum but we have to continue the fight until we retain what our islands currently enjoy.
"If not people and island based business will pay dearly. We are pleased that the Government is taking up our idea of having a proper impact study. In the meantime they should leave the current support in place."
Western Isles Council leader Angus Campbell welcomed the dialogue from the transport minister but warned that lorry increase of up to 50% "is a big hike and we have to look at its impact on the Western Isles"
He pointed out the staggered 50% discount only seemed to postpone the extreme cost rises for a relatively short period.
Western Isles transport chairman Donald Manford welcomed the "massive shift" from
the transport minister which ensures that the discounts would be shared out fairly
amongst hauliers and would not disadvantage one-
He said: "I hugely welcome the improvements that no haulier will have to pay beyond a 50% increase and I am glad the minister has taken onboard my call to conduct an economic impact study."
Donald John Macsween, former transport vice-
He said: "These 50% fare rises are swingeing increases which are unprecedented in the history of islands' freight transport.
"I am certain the OHTG will keep up the pressure to make the transport minister abandon this foolish course.
"He should maintain the present rates until there is proper consultation and an economic impact assessment."
Transport minister Keith Brown said the annual £2.7 million of public subsidy for commercial RET was unjustified in the restricted economic climate when there was no evidence of hauliers passing the savings onto local consumers.