Press Release      8 March 2010

Fuel duty: Keep the above-inflation increases

The Rail Freight Group (RFG) has written to Alistair Darling, the Chancellor of the Exchequer, urging him to keep applying above-inflation increases in fuel tax.

In a letter sent last week, chairman of the RFG Tony Berkeley wrote: “While we understand and sympathize to an extent with protests by the road transport lobbyists, the Rail Freight Group urges you to stand firm and apply these increases consistently and regularly.

“Fuel duty affects all the road freight industry equally; it does not affect the ability of operators to compete effectively within their sector although, of course, like any duty increase, it may cause a small increase in the cost of living as well as increase to Government revenue.”

He went on to say: “However, by raising fuel duty for road vehicles, and keeping the lower duty for rail freight users at the same level, you will widen the gap between the two modes.”

He added there were “strong arguments” for increasing fuel tax as it would enable the mode to compete more effectively with road.

“It will also send the right signals to the supply chain sector that the Government is serious about encouraging lower carbon transport, since rail freight produces about 70% less carbon per tonne mile than road.

“Continuing the above-inflation increase of fuel duty will be strongly welcomed by the rail freight sector and environmental groups, and will encourage the logistics industry to use rail freight for the greater part of its supply chain”, he added.

"After the developments associated with the Strategic Freight Network and other investments, the industry is well capable of meeting the challenge of growth that this would, hopefully, enable. We believe that by making the tough decisions now, we can help secure a more sustainable future for the environment and indeed the supply chain sector as a whole."

[ENDS] 

Notes to editor

Transcripts of evidence sessions for the Committee’s inquiries can be found on the Committee website at: http://www.publications.parliament.uk/pa/cm/cmtran.htm

For further information on the RFG please contact James Falkner, communications manager for the RFG, on 07950 535 886 or james@rfg.org.uk

About the Rail Freight Group (RFG)
The RFG has been the UK’s leading rail freight campaign group since its formation in 1991. It has more than 150 member companies, ranging from Maersk, the world's largest container shipping line, to high street retailer, Marks & Spencer.
Our members include customers, logistics providers, suppliers, terminal operators, ports and freight train operating companies.
RFG's aim is to promote cost effective rail solutions for freight, with a vision to see the sector attract a steadily increasing market share year on year.
RFG works hard in the interests of its members; to represent their views and provide a wide range of advice and information.
RFG is a company limited by guarantee and all revenue is ploughed back into providing services to members.
It was originally formed in 1991 to represent the views of those involved with the rail freight industry that were not British Rail.
The RFG seeks to achieve its objectives by organizing meetings and visits, by responding to consultation papers and by lobbying government, European Institutions, the Office of Rail Regulation and Network Rail.
One of its major successes was the inclusion in the 1993 Railways Act of a duty on the government and Rail Regulator (now Office of Rail Regulation) to promote rail freight.
RFG also looks to involve the media in positive comment and news where possible, and publishes a newsletter, circulated to nearly 2,000 opinion-formers, generally every two months.