asked the Minister for Industry and Commerce if he will quantify the implications for industry of the increased transport costs contained in the recent budget; his views on attempting to reduce those transport costs which, even prior to this year's budget, were the highest in the EC in terms of their burden on industry; and if he is concerned about the present disproportionate burden and its consequential employment and negative industrial effects.
Written Answers. - Transport Costs.
107.
While there are no precise figures available it is estimated that, as a result of the tax increases on road fuels in the recent budget, industry's road transport costs have been increased by between 0.3 per cent and 0.7 per cent. However, I should point out that petrol and auto-diesel prices are still significantly lower than in July 1987 when I imposed a reduction in petroleum product prices.
As I indicated in my reply to a parliamentary question on 2 March 1988 the most recent review of industrial costs by the Industrial Costs Monitoring Group indicates that our road transport costs are considered to be amongst the highest within the EC and this must be a matter for concern.
In the current budgetary situation I can see little room for a reduction in the taxes applied to road transport but, as I also indicated in my reply of 2 March, the general cost environment for industry has improved considerably and no effort is being spared in our determination to further improve it.
In this connection, I would refer in particular to measures to improve the roads infrastructure and increase competition in all transport services.