Scrapping RET in Scottish islands 'will increase delivery costs'

Date: 31/1/2012

The cost of transporting goods to Scottish island communities will rise if the Road Equivalent Tariff (RET) for lorries that use ferry services is scrapped, the Freight Transport Association (FTA) has warned.

Plans are in place to replace RET with a scheme offering a discount of up to 25 per cent on ferry fares, but Head of Policy in Scotland at the FTA Christopher MacRae said ending the tariff - which sets ferry fares at the equivalent cost of travelling the distance by road - is "bad news for operators."

"It will increase transport costs further and, if these costs are passed on, it will see the cost of living rise too," he argued, adding the new scheme, which is due to come into force at the end of March, is unlikely to apply to occasional users.

"Costs to larger commercial vehicles will increase by over 100 per cent," he added.

Mr MacRae recently called for more funding for the Scottish Freight Facilities Grant, stating extra cash is needed if the initiative, which aims to encourage the sustainable movement of goods around the country, is to be effective.

Posted by Mary Treen