Postponed tax right for industry, says food group

Tag : Food Material
The Food and Drink Federation ( FDF ) says it has been pressuring government for some time not toimplement the 2 pence tax hike on fuel , which it claims will further exacerbate raw material costsrelated to food and drink manufacturing.

Increasing oil prices have affected all aspects of the foodindustry from ingredient sourcing down to packaging material costs,through distribution has been particularly affected with strikes byhauliers taking place across the globe from London to Greece overthe last few months.

In light of these concerns, UK Chancellor Alistair Darling lastweek agreed to hold back on implementing the taxincreases potentially until next year.

Baring the brunt

Some haulage associations believe that any future fuel rises mustbe passed on to manufacturers, and, in turn, the consumer, toensure that continued road haulage for finished products andingredients is sustainable.

However, Julian Hunt, a spokesperson for the FDF, claimed that sucha tax increase would have served to cause 'unnecessary pain' tofood manufacturers, who are already working to improve their fueluse and output.

"We appreciate that environmental concerns were partly behind theproposed hike," he stated. "But food manufacturers are committed to making a real differencein reducing their environmental impact - and only this week almost40 FDF members made a public pledge to using fewer and friendlierroad transport miles."

RHA

Back in May, a spokesperson for the Road Haulage Association ( RHA ), which represents distribution groups across the UK, toldFoodProductionDaily.com that any industrial sector reliant onhauliers would have to bare the brunt of costs if the industry wasto continue.

"Financially, the industry cannot any longer take the hit," he stated at the time. "Since the beginning of the year, prices have risen 14 per cent, inany sector therefore, prices have to be passed down, there is noother choice."

RHA policy director Jack Semple said the food industry has tocontinue to seek new means for reducing its fuel needs to make itsdistribution network more sustainable.

He claims that food manufacturers can improve efficiency in thesupply chain by re-examining their operations, planning ahead,giving advanced indication of busy periods to haulage companies andfully optimising daily vehicle loading and unloading.