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EC wants contract protection

27th September 2001
Page 6
Page 6, 27th September 2001 — EC wants contract protection
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Which of the following most accurately describes the problem?

• Ambitious new plans to protect hauliers from sharp rises in the price of fuel have been unveiled by the European Commission.

EC vice-president Loyola de Palacio believes that 'harmonising clauses" in haulage contracts could help alleviate this financial pressure: "At present, a small number of rogue operators damage not only the reputation of the profession, but also depress prices and profitability, "The level of profitability in road haulage should increase to allow operators to invest in better equipment. One proposal that will help in this respect is to harmonise clauses in transport contracts to protect hauliers in the event of a sharp rise of diesel prices." It is not yet clear hew the EC would set up and enforce this latest proposal, but an EC spokesman confirms that plans are now being drawn up: "We should find a system in which hauliers could have a safeguard clause [in their contracts] Mien there is a sudden rise in oil prices. We still have to invent this mechanism, but it is clear that there was tremendous pressure on hauliers last year when oil was costing $34 a barrel."

Be Palacio was speaking at a meeting with the International Road Transport Union in Brussels and IRU president David Green welcomes the move: "The EU is taking notice of the problem," he says.

• See news analysis, page 10 and comment, page 9.