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ACFO AGM 2010: Fleet body seeks Government talks 'at earliest opportunity'

Date: 26 May 2010

ACFO declared at its annual conference that it is seeking talks with the new Government "as soon as possible" to ensure any future tax changes take account the real-world availability of low- and zero-emission vehicles.

The association said it is keen for its "long-established influential dialogue with a wide cross-section of Whitehall departments" to continue, and is hopeful of meeting with the new ministerial teams at HM Treasury and the Department for Transport to air its views "at the earliest opportunity", according to chairman Julie Jenner.

"I still maintain we are some way off before a genuinely viable 'clean' vehicle is available that will suit the needs of the majority of fleet operators and encourage them to purchase in any great volume," said Jenner. "A greener future undoubtedly appears to go hand-in-hand with an electric future, but there must be a viable electric vehicle recharging infrastructure and a stable programme of fiscal incentives to encourage take-up."

Jenner called for clarity on how long incentives will be in place for, and "ideally" an extension of current plans to offer a five-year company car taxation and van benefit exemption from April 2010 for pure electric vehicles as well as a grant of up to £5000 from January 2011 to the end of March 2014.

"The previous Government laid out a programme of tax incentives, but the timescale is already being eaten into and electric vehicle availability remains in its infancy," said Jenner. "With many manufacturers not planning to launch electric vehicles until late in 2011, 2012 or beyond, we need clarity on how long incentives will be in place for and, ideally, the timescale extended to ensure maximum take-up whilst bearing in mind fleet operating lifecycles and product availability."



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