By Patrick Hill

Last updated 13:40, Monday, 23 June 2008

A CUMBRIAN haulage boss has hit out at the government claiming the British transport industry will collapse unless they cut fuel tax.

Eric Nicholson, owner of Cockermouth-based Eric Nicholson Transport, claims three to four UK haulage firms are being forced to quit the industry every week and that the government does not realise the full extent of the problem.

His warning comes after a month in which fuel prices have risen at the fastest rate ever recorded, partly as a consequence of a four day strike by Shell tanker drivers.

The AA’s Fuel Price Report for June showed that, on average, UK petrol prices soared by 5.6p per litre between mid May and mid June, while diesel shot up 7.4p. The average cost of petrol in the UK is now 118.16p per litre, while diesel stands at 131.56p per litre.

Mr Nicholson, a Conservative councillor, said to the News & Star: “Why can't we get some help?

“Airplane operators don’t get charged VAT or tax, coach operators get a fuel rebate and train companies get a discount on tax.

“I think the government are so thick, they haven’t even thought about giving hauliers the same benefits.

“We’re an easy target because we're so fragmented.

“I can’t see the price going down again.

“I think it’s something we’ll have to live with.

“We’ll have to pass our costs on by charging customers more which in turn drives up inflation.

“It's the poor old consumer that will have to pay in the end.

“It gives foreign hauliers more of an advantage and will lead to the demise of the British transport industry.

“Unless the government starts charging foreign hauliers to drive on our roads and forces them to buy fuel in our country, they'll takeover.

“It’s very disheartening. Its got to the stage now where three or four hauliers are giving in every week. They just can't go on, they can't cope.

“I think the moment has come to keep the pressure on. It’s an unfair situation and it can’t be tolerated any longer.”

Domestic drivers and businesses across Cumbria are already feeling the pinch because of rising fuel costs with pressure growing on Prime Minister Gordon Brown to scrap a planned 2p fuel duty rise in October.

Copeland MP Jamie Reed has threatened to demand an inquiry into inequalities in fuel prices unless the Office of Fair Trading takes action to address cost differences across the country.

He want the price set nationally at the lowest retail level amid fears that Cumbrian motorists are paying more than those in other parts of the country.

The fuel situation is one factor of the wider credit crunch with record numbers people in the county struggling with debt.

It was revealed in Saturday’s News & Star that some people are having to live on just £10 a week to pay back debt and cover household bills.

In Carlisle alone, Citizens Advice Bureau (CAB) staff are dealing with £6million-worth of personal debt as people struggling to make ends.

Silloth Motor Company: petrol 120.9p; diesel 133.9p

Currock petrol station: 117.9; 130.9

Harwicke Circus, Shell: 116.9; 130.9

Penrith shell: 115.9; 129.9

Dunmail Park, Workington: 119; 132.