HGV Road User Levy Bill

Iain Stewart Excerpts

Tuesday 20th November 2012 Commons Chamber

[Iain Stewart (Milton Keynes South) (Con)]

I am grateful for the opportunity to make a further short contribution to this debate, following the Ways and Means debate on 23 October. I will not detain the House by repeating all the points I made then, but I want to put on the record my support for the Bill on Second Reading, and add my congratulations and thanks to the Government for bringing it in. It is a long, long overdue measure.

My interest in this subject stems partly from my membership of the Select Committee on Transport—the hon. Member for Liverpool, Riverside (Mrs Ellman) set out in detail why we have taken an interest—but I also have a constituency interest. Milton Keynes is home to many hauliers and large logistics and distribution companies. The hon. Member for Strangford (Jim Shannon) mentioned that most potatoes in the country come from his constituency. At the top end of the scale in my constituency we have the national distribution centre for John Lewis, so if Members buy their Christmas gifts from John Lewis—other department stores are available—the goods will very likely start their journey in my constituency. I paid a visit to those at the John Lewis distribution centre a couple of weeks ago and asked their opinion on the Bill. They told me: “Our view is that the Bill is a positive step, because it is helping to address the unfair balance of foreign trucks coming into the country with lower diesel costs. In that regard it is very welcome.” I believe that is the typical view of the haulage industry.

I want to use a little example to flesh out the reasons why UK hauliers are currently at a competitive disadvantage. The point has been well made that fuel prices on the continent are lower than in the UK. As of last month, the average UK diesel price after adjustments was around €1.72 a litre. That contrasts with €1.37 in Belgium, €1.35 in France, €1.30 in Luxembourg and €1.44 in the Netherlands, so foreign hauliers coming to this country stand to make a gain of 20-odd per cent. When fuel represents up to 40% of the operating costs of an HGV, that makes a critical difference to the operating margin for many haulage companies. I have had many representations from hauliers, as I am sure other Members have, about the disadvantage they face, not only from international competition, but from cabotage, whereby trucks fill up overseas and can then cherry-pick short-haul domestic journeys in this country. That can create huge employment uncertainty for HGV drivers in this country, which is a problem that I do not think has been mentioned in the debate thus far. I have had representations from constituents who have been HGV drivers for many years who have found it more and more difficult to get long-term permanent jobs because of the competition from overseas lorries. This measure will go a long way to creating some certainty and security in that employment market.

I will not detain the House any longer—I do not want just to go over all the points I made in the Ways and Means debate. I support the Bill and wish it a speedy passage today and in Committee, and I look forward to it becoming law sooner rather than later.