FREIGHT FORWARDERS AND THE SINGLE MARKET

That this House notes that on 1st January 1993 there will not be a requirement to customs clear goods in free circulation within the European Community, that the collection of VAT will move from payment at the point of entry to an audit method, similar to that used for domestic transactions, and that this change may result in a large number of freight forwarders losing their jobs overnight, with estimates currently predicting 3,500 redundancies in the United Kingdom; notes that the Institute of Freight Forwarders and the British International Freight Association do not object to these changes; however, bearing in mind that the loss of jobs is a direct result of a political decision, as opposed to market forces, considers it is necessary for further funds to be made available by the Government for retraining and to encourage employees to remain at their posts until the end of the year; and further considers, as the Dutch and French Governments have provided funds to assist the forwarding industries in their respective countries, that this is a precedent and the United Kingdom could join in to make the transition period between now and 1st January 1993 as smooth a change over as possible.