Overseas Hauliers: Charges (Hansard, 17 December 2002)

§ Lord McIntosh of Haringey
My Lords, the 2001 Labour Manifesto made a commitment to, ensure that hauliers from overseas pay their fair share towards the cost of our roads". In the 2001 Pre-Budget Report, the Chancellor gave a commitment that the UK haulage industry would not pay any more as a result of the introduction of a charge and consulted on options to deliver that commitment.
In Budget 2002 the Chancellor announced that the Government aimed to introduce a distance-based lorry road user charge in 2005 or 2006. Since the Budget, detailed work has been undertaken on how to administer and procure the charging systems. The recent Pre-Budget Report announced that the Government will publish a second progress report early next year.

§ Lord Bradshaw
My Lords, I thank the noble Lord for that reply. Will he indicate whether the charge to be paid by foreign hauliers will correspond to the road user charge and the environmental charge that should be levied on a typical five-wheeled vehicle? If that is not the case, why will they be charged less?

§ Lord McIntosh of Haringey
My Lords, I do not believe that the amount to be charged is the most urgent priority. In consultation with the industry we have chosen probably the most technically advanced but the best scheme which comprises a distance-based charging scheme rather than a time-based charging scheme. It requires satellite technology. The technological aspects of the scheme are being studied and will be reported on again soon. Questions regarding the amount of the charge will properly follow from that.

§ Lord Clinton-Davis
My Lords, will my noble friend indicate whether any discussions have taken place on the issue with the European Commission and, if not, why not?

§ Lord McIntosh of Haringey
My Lords, discussions certainly have taken place with the European Commission. As the noble Lord, Lord Clinton-Davis, knows, the European Commission has issued a directive on the Euro vignette system but at the moment that applies only to motorways. We are keen for a charging scheme to be extended. Germany and Austria are already working on that and we are in close contact with them on the matter.

Lord Berkeley
My Lords, the House should welcome the fact that the new carnet system for foreign lorries will be based on distance travelled. But how will it promote fair competition vis-à-vis British hauliers 532 whose payment through tax, vehicle excise duty, fuel duty or whatever is based not on distance travelled but largely on a lump sum per annum?

§ Lord McIntosh of Haringey
My Lords, fuel duties are based on distance: the more you travel, the more fuel you use. In that sense, the new system will be directly comparable. What we said, and what we shall stick to, is that there will not be any additional charge for the UK haulage industry. I am not saying that it is certain that the rebates, in effect, to the UK haulage industry will take the form of reduced fuel duty but that certainly seems the most likely possibility.

§ Earl Attlee
My Lords, I remind the House of my interest as president of the Heavy Transport Association. The Minister referred to road user charging and satellite technology. Why cannot we just extract the necessary data from the new digital tachographs being introduced in the haulage fleet?

§ Lord McIntosh of Haringey
My Lords, that has been assessed as tachographs could be enforced as regards foreign vehicles travelling to this country. However, there is a difficulty as regards potential fraud. For that reason we publicly committed ourselves to a satellite-based system even though we are aware that it will take longer to introduce.

§ Lord Methuen
My Lords, the noble Lord referred to a satellite-based system. To what extent will it conform to international standards?

§ Lord McIntosh of Haringey
My Lords, I am not sure that I understand to which international standards the noble Lord refers. I shall have to discuss the matter with him and then write to him rather than attempt to reply now.