Security measure scrap call welcomed

The Forum of Private Business (FPB) has welcomed the call to scrap anti-terror proposals by the European Commission to improve security of road, rail and waterway freight.

The Forum of Private Business (FPB) has welcomed the call to scrap anti-terror proposals by the European Commission to improve security of road, rail and waterway freight.

The plans would leave hauliers with a massive bill and would lead to many smaller firms going out of business.

The proposals would have cost 4.75 million firms GBP90,000 each to meet standards in the first year alone.

The FPB's European spokesperson, Martin Smith, explained the scheme.

"The proposals by the European Commission mean member states would award a 'secure operator' status to those who meet the minimum security requirements.

It would cost each operator 135,000 Euros in the first year and 131,000 Euros every year after that." That is the equivalent of GBP90,000 in the first year and around GBP87,000 every year after that; a price many smaller firms could not afford.

Mr Smith said the costly measures may not even prevent terror attacks.

"Although we recognise that there is work to be done by both businesses and governments to prevent terror attacks, these precautions will not do that.

They include documenting security management, training personnel, access controls etc, none of which will stop a determined terrorist.

"A far more effective way of preventing terrorism is by acquiring high-quality intelligence that is acted upon by governments," he added.

The high cost of the proposals could quite easily be absorbed by those larger firms operating in the haulage industry, but smaller firms would struggle to meet it.

The FPB believes it would force smaller hauliers to the wall and would consequently push prices up in the sector, due to reduced competition.

The European Commission maintained that the certificate would be a voluntary measure, but that, said Mr Smith, is not realistic.

"The fear is that market pressures would make it obligatory: transport users having dealt with one certified company could demand the same certification from others.

If hauliers who have the certificate were fast-tracked through ports and entry points, their competitors would be at a disadvantage." Tracy Hoather runs Sameday plc, a small courier firm in Knutsford, Cheshire.

She feels the proposals would open the door for larger firms to take advantage.

"Big companies would agree to these terms in order to put trading blocks on their smaller competitors.

Either because it would become an industry standard or because it would be necessary to stay competitive, smaller firms would not be able to take it or leave it." There could also be cases of large transporters, which subcontract parts of their business, demanding the certificate from firms that submit tenders.

The FPB, which has been calling for the European Commission's proposal to be scrapped, is pleased that the Commission has been asked to withdraw the plans.

Mr Smith said there was a weight of opposition to it.

"A report from a Council of Ministers working group shows that most member states are against the plans.

Member states do agree that something should be done, but this proposal is out of step with Commission pledges to cut red tape and cost burdens for smaller firms." "What is needed is a completely new proposal that outlines ways business and government could work together against terrorism, but does not put all the costs on business," he added.

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