In 2005 the Burns report highlighted the impact of foreign competition on the UK haulage market. The report revealed that cabotage only accounted for 1.2% of the market but was concentrated in areas such as the East Coast container ports, where foreign hauliers were taking work with rates up to 50% below the UK average. UK operators were also being driven out of cross-Channel work.

Simon Chapman, chief economist and general manager for information services at the Freight Transport Association (FTA), says: "On the cabotage front, the situation has not changed much because the EU accession states are not allowed to do it." He adds that the stability of the sterling/euro exchange rate will also have had an impact. Fair competition - even if cut-throat - is an integral part of road haulage. So why can't domestic operators match the rates offered by their foreign competitors? The answer is two-fold: the UK's high duty and high wage costs. The Burns report said costs for UK operators running 44-tonne artics were 4% higher than for German operators, 8% higher than for Belgian operators, 22% higher than for Czech operators, 31% higher than for Polish operators and 37% higher than for Hungarian operators.

Geoff Dossetter, director of external affairs at the FTA, believes the Chancellor's announcement of fuel duty increases until 2009 shows the government has taken the issue of high fuel prices - and its impact on hauliers - seriously: "The government isn't allowed to decouple the fuel duty for freight and private vehicles, and the EC dictates that the Chancellor cannot cut fuel duty. By setting out his stall for the next few years, Gordon Brown has tried to balance the business needs with the environmental issues."

A spokesman for the Department for Transport reports that the Measures for Road Safety Act, which is at the consultation stage, will include a deposit system to allow Vosa inspectors and the police to collect on-the-spot fines from foreign hauliers. "At present, foreign drivers are given a fixed penalty notice, but that's the last we hear of them so they never pay up," he admits. "Under the deposit system, Vosa or the police will be able to take a deposit from them - which we expect will be in the region of the total amount of the fine, although we are still working out the details." The act will also allow the police and Vosa to immobilise vehicles if they discover hours or safety offences. Research by the FTA and the Road Haulage Association in 2005 indicated that foreign-registered trucks are damaging UK roads to the tune of £200m a year and will rob the country of £3bn in lost revenue by 2020.

Safety of foreign vehicles on UK roads

Vosa data shows that, on average, foreign-registered trucks are less roadworthy than their UK counterparts and are more likely to be overloaded. Only France has a lower rate of hours prohibitions than the UK, and only the Netherlands and Denmark have a lower rate of roadworthiness prohibitions. Not surprisingly, the most common foreign-registered trucks on British roads are French. Under 1% of all foreign-registered vehicles in the UK were involved in accidents in 2005, according to DfT figures. Of these foreign vehicles, 75% were left-hand drive, 12% were right-hand drive and 13% were two-wheelers. Some 47% of the foreign vehicles were LGVs - the majority of which were left-hand drive.

Of the 1,031 foreign-registered left-hand-drive LGVs involved in accidents, 443 (43%) were either changing lanes or overtaking on a dual carriageway. Of those LGVs that were changing lanes at the time of the accident, 409 were changing lane to the right and 14 were changing lane to the left. The difference is thought to be the consequence of the reduced field of view on the right-hand side of the vehicle. CM tested a possible solution to this problem earlier this year, with good reviews. Drivers of UK-bound left-hookers which pass through the French Channel ports are being handed one of 40,000 free Fresnel blind-spot lenses to improve their view of overtaking traffic. CM's verdict: "Overall, the lens is a winner - we believe every left-hand-drive truck in the UK should have one fitted."

Also, the European Commission is looking at a directive that would require all trucks to be fitted with sufficient mirrors and lenses to have a complete all-round view of the cab. If the directive passes, it would become compulsory from 2009. UK drivers entering Europe or foreign drivers entering the UK can currently do so without any additional training. The current law on visitors entering the UK from the European community states: "Licences issued in the European Community and European Economic Area [EC/EEA] make up two groups that are treated equally. "If you hold a valid community licence and are visiting GB, you can drive any vehicle if your licence is valid. The appropriate full entitlement for the vehicle you wish to drive must be shown on your licence." The same goes for UK drivers heading into Europe: "You may use your GB licence for driving in other European Community/European Economic Area member states."