Following the Government's abandonment of the proposed Lorry Road User Charging (LRUC) scheme last month, the Freight Transport Association (FTA) and the Road Haulage Association (RHA) announce a series of actions.

These actions are designed firstly to determine the impact and cost to the UK economy and the road transport industry from the increasing number of foreign lorries operating on UK roads; and secondly to clarify the competitive effect on UK operators of the substantially higher rates of duty applied to diesel in the UK compared with the rest of Europe.

The Government's proposals were intended to level the playing field by taxing foreign lorries running on UK roads. They would also have provided a framework for decoupling fuel duty on lorries from fuel duty on cars. Since scrapping the scheme the Government has given no indication that it intends to deal with either matter.

FTA and RHA have now commissioned an industry-wide inquiry to update and review the evidence of the effects of high fuel duties on UK transport operators, businesses and the economy. It will seek to carefully assess the impact on competitiveness with non-UK based operators, and the new policy remedies which the industry should seek from the Government.

The inquiry will involve consulting the widest possible audience, including members of both associations, non-members, academics, other trade organisations and any other individuals or groups interested in the matter.

FTA and RHA are pleased to announce that the inquiry will be chaired by Robbie Burns, a former Group Managing Director of the NFC UK. Earlier he had been a Managing Director of BRS. He became the founding Chief Executive of Exel (Logistics). Subsequently he has remained active in the logistics sector as a Non-Executive Director or board level advisor at CTR plc, Ryder, Tibbett & Britten and ACR (ex Hays). He is a man with a lifetime's experience in the road transport sector. Mr Burns has already made contact with a number of individuals and groups, seeking their views and advice.

In addition to its own investigations, the Burns Freight Taxes Inquiry will benefit from two other key actions being jointly taken by FTA and RHA:

• An investigation of the legality of the unfair competition now preserved in the UK market until 2020 (the possible date at which a road pricing scheme for all vehicles will be introduced).
• An investigation into the cost to the UK economy of the unpaid road wear resulting from the operation of the increasing number of foreign lorries in the UK, which the Chancellor promised to recover in 2001 but has now abandoned.

So seriously do the FTA and RHA consider the vacuum in policy targets resulting from the scrapping of the previous plans that they have jointly pledged an initial £100,000 to fund the Burns Freight Taxes Inquiry and its ancillary projects which could follow.

FTA Chief Executive Richard Turner said, "It is highly significant that the FTA and RHA have come together to sponsor this unique exercise. The industry has been very badly let down by the Government and we must now do all in our power to achieve an equitable environment for our industry to operate in and which recognises our absolute value to the UK economy."

RHA Chief Executive Roger King said, "We believe that the haulage industry has to restate its case from first principles. It is clear that unless we re-establish our arguments based on hard and fast facts, we will be ignored. The Burns Freight Taxes Inquiry, which will depend upon a positive response by the industry, will help us provide that."