HGV Road User Levy Bill

Gordon Marsden Excerpts

Tuesday 20th November 2012 Commons Chamber

[Mr McLoughlin]

I take the hon. Gentleman’s point. Under this Bill, we will at least charge them something to use British roads—at the moment, they pay absolutely nothing. Although I am not saying that this is the entire answer, we are moving in the right direction.

Foreign hauliers using roads in the UK have long enjoyed an advantage over our own haulage industry in that they do not pay to use the UK’s road network, while our own hauliers pay to use roads through tolls and other charging schemes when they travel abroad in Europe. For many years all main parties have wanted to introduce a measure to correct that imbalance and I am delighted that this Government are actually doing it.

I am sure that the House recognises that HGVs play a crucial role in our economy by supplying businesses and servicing customers. More than two thirds of all goods moved within the UK travel by road and, in the main, on HGVs.

[Mr Gordon Marsden (Blackpool South) (Lab)]

The Secretary of State is right to pay tribute to the work done by HGVs in this country but, at a time when UK hauliers and other businesses that make deliveries are suffering economically, will he outline the rationale behind introducing the Bill now? What other things will the Government do to protect UK hauliers from additional costs?

[Mr McLoughlin]

The reason for introducing the Bill now is to try to level the playing field and to take action that the previous Government talked about but, I am afraid, never found the time to do anything about. I make no apologies for wanting to do this now. I wish it had been done sooner, but at least we are doing it at our first opportunity.

A key part of the movement of goods is provided by foreign hauliers and the Government recognise the important contributions they make to the economy. They make 1.5 million trips to the UK every each year, and we do not wish to discourage free trade with our partners in other countries. However, it is only right that we ensure that our own haulage industry has a fair chance to compete, and I hope that the Bill goes some way to achieving that. I met some hauliers when I announced the Bill and they said that it would lead to more jobs in this country.

As colleagues will be aware, any road user charge is subject to the strict conditions set out in the Eurovignette directive, which provides a framework for charging on roads and specifies the maximum daily charge as €11. That is likely to rise to €12 by 2014, which will mean that it should equate to the £10 a day that we intend to charge the largest vehicles that use our roads.

I also recognise that many trips made by foreign hauliers take longer than one day, so they will also be able to pay the levy for different periods, up to one year. In the case of the largest vehicles, this annual charge will be £1,000. Our estimate of the revenues that will be gained as a result of foreign hauliers paying a charge is between £19 million and £23 million a year. Although that is not enormous, it shows we are doing something that is clearly wanted. That is why the Bill is right. The Government are also committed to introducing other measures—principally vehicle excise duty reductions—that are not part of this Bill to ensure a fairer deal for HGV drivers.

I will now go through the Bill’s points of interest.