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Interview: ACFO's new chairman speaks to BusinessCar

Date: 18 August 2014   |   Author:

Lobbying

ACFO has had some recent success in lobbying on behalf of members, something Prior is keen to see continue.

"I'm very proud of the work we have done with Government on Advisory Fuel Rates, and proud that we now knock louder with people like the DVLA over the abolishment of counterparts," he says. "When we started talking to them originally it was a case of 'why do we [the industry] need that?' They didn't understand.

"If you didn't have ACFO, and people didn't renew their membership or want to join, then they won't have a voice with Government or legislators," Pryor continues. "You've got the BVRLA [British Vehicle Rental and Leasing Association], but they speak for rental and leasing companies. We're supporting the end team, whether you use a leased car or not. I'm very keen to get fleet operator members. That's how you get your voice heard and we're trying to make a point and be listened to."

The ACFO boss said Government departments find it useful to deal with a fleet manager. "When we started with the DVLA or HMRC, I could say I'm a practicing fleet manager and this is happening now, and they appeared to like it because it almost cuts out the middle man. Lease providers have their agenda and Government likes to understand where we are coming from. For example, they asked me why companies even have grey fleets," he says.

There will be more lobbying on behalf of fleet members to come, with electric vehicles and mileage rates being areas of interest.

"We've been back to Government and said one minute you want to take low-emission cars and push them, then you are ramping up the tax on them hugely," says Pryor. "With the £5000 supplement, you could say you are getting £5000 off the purchase price, but the employee doesn't and they will pay a lot more in tax as the benefit-in-kind ramps up, so the question will be, 'why am I doing this?'"

Fuel rates for electric vehicles are also a bone of contention within the fleet industry, and ACFO is talking to Government about the issue.

"What is the fuel reimbursement rate for electric cars and what do I pay my drivers for plug-ins?" he questions. "For fleets, they haven't got the time and expertise to work it out, so to have Revenue set a rate is vital."

Pryor admits it will be even more difficult for plug-in hybrids because there is no way of proving whether electric or petrol/diesel power was used, and he says that the Treasury's current "get-out" is that electricity isn't a fuel, with him speculating that it won't be an issue until there's a critical mass of vehicles costing the public purse enough money to be worth the trouble.



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