Lorry firms warn RET changes will create job losses 10/12/11
Transport hauliers in the Western Isles have declared their opposition to remove lower RET ferry charges from lorry firms.
Trucking companies which are heavy users of the ferries highlight that getting rid of the cheaper RET fares for large commercial vehicles will increases costs and damage the local economy.
They reckon they will be hammered by an extra quarter of a million pounds which will have to be passed on to the customer.
Lorry operators warn it risk the survival of some businesses. They say freight costs and prices will go up which could ultimately result in job losses.
They have established a campaign group called Hauliers for RET to both work on the RET case and to dispel the myth hat island hauliers did not want RET.
SNP MP Angus MacNeil is fighting his own party on the Scottish Government’s axing of RET for lorries getting RET. He has written to transport minister Keith Brown, on behalf of hauliers, and stressed the importance of retaining the present RET system.
Mr Macneil said: “I said from the outset that the decision to remove RET from the hauliers was a mistake. Since this was announced, I have spoken to many hauliers who are understandably worried at the effect this will have on their business.
“The removal of RET will ultimately lead to an increase in prices for customers in our islands. I will be pressing for a meeting with the Transport Minister early in the New Year.”
Mr Macneil added: “Business is also hindered by the current 5-
“This should be increased to 6-
“A small change by CalMac could make a huge difference financially to smaller businesses.”
He pointed out that ferries to the Shetlands are “considerably cheaper per mile travelled. I do not begrudge them this, they have longer sailing times (which gives them a more expensive return fare) but our Hebridean distances have to be taken into account also.
“This issue illustrates the need for full autonomy for Scotland, so that tax revenues raised by stimulating the economy are kept by the Scottish Government.”
David Wood of Woody’s Express Parcels said: “This will be a huge addition to costs. RET has benefited the islands and to remove it from the haulage industry will be detrimental to the whole community.
“With RET we revised our prices and reduced costs to customer, we will now have to look again at our cost base, ultimately our customer will have to pay.”
Donald Joseph Maclean of Barratlantic commented: “We are now back where we were with lorry prices going up almost 40% this will of course cost jobs and mean higher freight charges. The cost of living on Barra is already high, as we know.
“The removal of RET will have a detrimental effect on this company, which has been established since 1974 and is the largest private employer on the Island. Since RET came into effect four years ago, we have been on the same working level as our mainland competitors and our turnover has increased by 20%, which made us competitive. The removal of RET is unimaginable.”