Impact of the Removal of RET Fares from Commercial Vehicles on The Western Isles, Coll and Tiree

ISBN 978 1 908181 77 0 (Web publication only)

This document is also available in pdf format (1.1mb)

Distribution
Issue Date Distribution Comments
1 03/12/2012 Transport Scotland First Draft
2 08/01/2013 Transport Scotland Second Draft
3 10/02/2013 Transport Scotland Third Draft
4 24/02/2013 Transport Scotland Fourth Draft
5 08/03/2013 Transport Scotland Final Draft

Contents

Summary

1 Introduction
1.1 Overview
1.2 Background to Road Equivalent Tariff for Commercial Vehicles
1.3 Working Group
1.4 Format of this Report

2 Ferry Fares for CV Operators
2.1 Introduction
2.2 Background
2.3 Pre-RET Fares
2.4 Pre-RET Discounts
2.5 RET Pilot
2.6 Post-RET Fares
2.7 CV Carryings
2.8 Conclusions

3 Methodological Approach to Consultation and Data Collection
3.1 Introduction
3.2 Haulier Interviews
3.3 Business Interviews
3.4 Online Business Survey
3.5 Control Group Interviews
3.6 Understanding the Precise Impact of the Removal of RET for CVs

4 Ferry Fares and the Impact on the Haulage Industry
4.1 Introduction
4.2 The Interview Programme
4.3 Business Models Operating to the Islands
4.4 Volume Imbalances and Effect on Pricing
4.5 Overall Inefficiencies in Serving Island Markets
4.6 Pre-RET Discounts
4.7 Passing on Savings from RET CV Fares
4.8 The Vulnerable Sectors
4.9 View on the Alternative to RET
4.10 Conclusions

5 Ferry Fares and the Business Community
5.1 Introduction
5.2 Business Confidence in Fares Policy
5.3 The Introduction of RET
5.4 RET and the Haulage Industry Transport Charges
5.5 Impact of Removal of RET for Commercial Vehicles
5.6 Competition in the Haulage Market
5.7 Impact of RET on Competition
5.8 Survey Findings - On-line Business Survey
5.9 Survey Findings - Routed Questions
5.10 Businesses using a Third Party Haulage or Delivery Company
5.11 Conclusions

6 Supply Chain Linkages
6.1 Introduction
6.2 The Supply Chain
6.3 Impact on Sectors
6.4 Conclusions

7 Geographic Impacts
7.1 Introduction
7.2 Socio-economic Context of the Western Isles
7.3 Socio economic data by island group
7.4 General Regional Impacts
7.5 Conclusions

8 Wider Economic and Social Impacts
8.1 Introduction
8.2 Cost of RET
8.3 Vitality of the Islands
8.4 Impact on Economic Development
8.5 Lower Quality Products
8.6 Competitiveness
8.7 Hauliers as Key Contributors to Supporting Local Communities
8.8 Impacts on "Prices in the Shops"
8.9 Impacts on Households
8.10 Impact on Vulnerable Communities
8.11 Future Uncertainty
8.12 Impact of redefining a CV from 5m to 6m
8.13 Conclusions

9 Costs to the Taxpayer
9.1 Introduction
9.2 Data
9.3 Impact of changes in fares
9.4 Conclusions

10 Emerging Findings
10.1 Introduction
10.2 Research Findings
10.3 Impact Mitigation - The Components of a Future Fares Policy

Tables

Table 2.1 Summary of Fare Systems 2008-2015
Table 2.2 Pre-RET Half-Metre Rates by Route
Table 2.3 Pre-RET Commercial Vehicle Fares
Table 2.4 Pre-RET Commercial Vehicle Fares with a 15% TRS Discount
Table 2.5 Number of TRS Operator Rebates
Table 2.6 RET Rates per Half Metre 2008
Table 2.7 RET Fares October 2008
Table 2.8 Changes in Pre-RET and RET fares
Table 2.9 Changes in pre-RET and RET fares including TRS discount
Table 2.10 RET Rates per ½ Metre 2011
Table 2.11 RET Fares 2011
Table 2.12 Post-RET ½ metre rates April 2012
Table 2.13 CV Fares 2012 Transitional Arrangements
Table 2.14 CV Fare Increases Between 2011 (RET fare) and April 2012 (Transitional Arrangements)
Table 2.15 CV Fares 2013 Transitional Arrangements
Table 2.16 CV Fares Pre RET and 2012 Transitional Arrangements
Table 2.17 CV Fares Pre RET (with 15% and 10% TRS discounts) and 2012 Transitional Arrangements
Table 2.18 CV Fares Pre RET (with 15% and 10% TRS discounts) and 2012 Transitional Arrangements in 2012 prices
Table 2.19 CV Carryings by Route April to September, 2007 to 2012

Table 4.1 Breakdown of Road Haulage Costs (UK)
Table 4.2 Road Haulage Cost changes Sept 2007 - Sept 2008 (UK)
Table 4.3 Percentage Change in Individual Haulage Costs from Sept 2007 to Sept 2012
Table 4.4 DECC Fuel Price Index Q3 to Q3

Table 5.1 Registered Businesses by Sector as a Percentage of Total (Western Isles and Scotland, March 2012)
Table 5.2 Employment by Sector as a Percentage of Total (Western Isles and Scotland, March 2012)
Table 5.3 Turnover by Sector in the Western Isles (2012)
Table 5.4 Number of firms by Employment Size Band Western Isles (2012)
Table 5.5 Number of firms by Employment Size Band in Primary Indstries, Western Isles (2012)

Table 7.1 Western Isles Population 1981 to 2001
Table 7.2 JSA as % of Workforce 2006 to 2012

Table 8.1 Claimant Count Rates (January 2013)
Table 8.2 RET and Transitional Arrangement Fares for a 5.5 metre Van

Table 9.1 Change in Fares from 1 April 2012
Table 9.2 Carryings and Revenue by Route Apr-Sept 2011/12 and Apr-Sept 2012/13

Figures

Figure 1.1 Elements of Study

Figure 5.1 Area of Business Operation
Figure 5.2 Sectoral Split
Figure 5.3 Average Annual Turnover
Figure 5.4 Transport Costs as a Percentage of Total Business Costs
Figure 5.5 Ferry Fare as a Percentage of Total Transport Costs

Figure 7.1 Deprivation in Western Isles, Coll and Tiree


Published Date 8 Mar 2013 Mode of transport