TWO ISSUES TO DOMINATE FLEET AGENDA IN 2007, SAYS ACFO CHAIRMAN
13 December 2006 - ACFO (Association of Car Fleet Operators)

Two issues have dominated the minds and actions of fleet operators in 2006 - managing occupational road risk and reducing the environmental impact of at-work driving.

Both issues will remain at the top of fleet operators’ agendas in 2007 - but potentially with environmental issues taking increasing prominence under mounting pressure from Government and the European Commission as a consequence of impending legislation and fiscal influence.

Prime Minister Tony Blair’s climate change concerns have been well documented - witness proposals for a Climate Change Bill announced in the recent Queen’s Speech and due to be published next year - but fleet chiefs are looking for Government to introduce financial support for ‘green’ transport actions.

The 2005 demise of the PowerShift grants programme for alternatively-fuelled vehicles derailed many fleet plans to introduce environmentally-friendly vehicles.

While, the company car tax and Vehicle Excise Duty tax regimes encourages the uptake of low carbon dioxide-emitting and alternatively-fuelled vehicles - as does Transport for London’s congestion charge scheme - fleet operators are looking for greater leadership from Government and a new programme of financial incentives to speed-up the uptake of ‘green’ motoring.

There is no doubt that companies understand the importance of combating climate change and fleets have a huge role to play, but they are looking to the Government for a joined-up co-ordinated strategy. Ending PowerShift, while preaching the importance of environmentally-friendly transport left many fleets up a ‘green’ cul-de-sac.

ACFO believes that the vast majority of companies have taken at least some responsibility for the health and safety of their at-work drivers as a result of the avalanche of publicity in recent years.

For many fleet operators risk assessments, driver licence checking and driver training for high-risk drivers etc. are ‘work in progress’ and will remain so in 2007.

The Road Safety Act, which recently reached the statute book and contains tougher penalties for hand-held mobile use by drivers and a range of graduated penalty point penalties for speeding drivers among a wide-range of other issues, should be a focus for fleet managers and needs to be communicated to drivers.

The findings of the HM Revenue & Customs’ review of Employee Car Ownership Schemes are expected to be announced in 2007. During 2006 we have seen the start of a migration back to traditional company cars from ECO schemes and other cash alternative initiatives and next year that move may gather greater pace.

Three or four years ago choice and flexibility were the corporate buzzwords as ECO schemes came to increased prominence. However, expected corporate cost savings have not been delivered, duty of care issues have intervened and administration of such regimes has, at times, proved cumbersome.

The issue has almost come full circle and while ECO schemes and cash alternatives remain right for some companies and employees, the results of the HMRC review, which could lead to a revised fiscal regime that plays to the strengths of the company car, is likely to spur a detailed examination of fleet funding policies.

Additionally, on the legislative front, the ECO review may herald changes in the Approved Mileage Allowance Payments system, which ACFO has long campaigned for; and we can also expect the long-awaited changes to capital allowances and corporate tax relief on company cars to be announced, which will also influence chosen funding strategies.

Finally, early in 2006 rocketing fuel prices received the full focus of fleet operators as they grappled with retaining budgetary control while ensuring fleet vehicles remained on the road. Although, pump prices have reduced in recent months the expected continuation of yo-yo pricing must result in a focus on the operation of the most fuel-efficient vehicles.

And remember that, typically, the better the MPG of a vehicle the lower the CO2 emissions so the ‘greener’ your fleet. Climate change has been described as the ‘biggest challenge of our time’ and in 2007 fleets operators should aspire to contribute to reducing transport pollution.

www.acfo.org

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