On February 26 the GRTU was reported to have complained about the increases in annual circulation fees for commercial vehicles, announced in 2009 and which came into effect on January 1 of the current year.

The GRTU fails to point out that the increase was applied only to vehicles which are over nine years old.

The body quoted increases using examples of vehicles which were 16, 20 and even 27 years old. The increases amounted to €430 in one category and up to €185, at the most, in other cases. These increases would also be tax deductible by up to 35 per cent, while the cost of the vehicle would have been mitigated over the years as depreciation of equipment in the companies’ accounts.

It does not look good on GRTU members to have to rely on old equipment to remain competitive, with implications on safety and emission standards and effects on air quality.

In spite of being forewarned of the impending increases for around four years, there was no tangible modernization of commercial vehicle procurement. Between 2010 and 2013, 6,490 commercial vehicles (goods carrying vehicles, special purpose vehicles and road tractors) were newly registered, 70 per cent of which were used vehicles.

This may not mean that they were all over nine years old but a portion of them would have been and the rest would quickly become so.

Emission standards of all road vehicles have made amazing improvements in the past decade. Using old equipment not only means poorer emission standards but also superimposes deteriorating emissions from wear and tear and questionable maintenance schedules. An added bonus for operators using old technology diesel engines (pre common-rail technology) is the freedom to use fuels other than low sulphur automotive diesel.

Some fuels that can be classified as gasoil can be used on old diesel engines with consequent degradation of exhaust emissions.

If one had to equate the contribution to poor urban air quality by road traffic, commercial vehicles are a major contributor to the particulate, NOx and SOx fraction and a significant contributor to CO2 and CO emissions.

Yet, bearing in mind the tax benefits at registration and the cost mitigation as equipment depreciation for commercial vehicles, the contribution of total vehicle taxation from commercial vehicles is markedly and disproportionately low compared to their overall contribution to air pollutants and road degradation.

For that matter, if cost increases to the commercial sector will be carried on to the consumer it stands to reason that any increases in tax take from commercial vehicles should be passed on to the consumer by lowering the equivalent amount from owners of (smaller) passenger cars. If higher fees are applicable to passenger cars in order to solicit fleet renewal, higher fees are needed to encourage commercial vehicle fleet renewal.