Councils waste millions on ‘grey’ fleet drivers’ mileage rates

County councils are overpaying their ‘grey’ fleet drivers on mileage rates by millions of pounds a year, according to an investigation by trade publication Fleet News.

A ‘grey’ fleet driver – someone who uses their own vehicle for business travel – working for Northamptonshire County Council, for example, will receive £5,327 for driving 10,000 miles on business. That’s an average of 53p per mile or more than 32% higher than the Government’s official rates.

Drivers for five other county councils – Staffordshire, Cumbria, Warwickshire, Buckinghamshire and Suffolk – also receive more than 32% more than official rates when annual lump sum payments are included.

The Treasury’s approved tax-free mileage allowance payment (AMAP) rates, which are used by organisations to repay ‘grey’ fleet drivers’ travel expenses, are set at 40p per mile for the first 10,000 miles and 25p thereafter. They are intended to cover the cost of fuel and the cost of maintaining the car.

However, two-thirds of councils also pay ‘grey’ fleet drivers an annual lump sum, ranging from £379 to £1,170, on top of the mileage rate for maintenance.

Factored in, this lump sum means that the majority – 72% of the 25 county councils quizzed by Fleet News pay their drivers far more than the official 40ppm.

And 11 of these pay so much that even when the lump sums are discounted they still exceed AMAP rates.

The research confirms that many council ‘grey’ fleet drivers are considerably better off driving their own car on business than using a council-supplied lease or rental vehicle. It also makes the battle to get ‘grey’ fleet drivers into a company car scheme much tougher.

According to the AA, a typical six-year-old car – the average age of a ‘grey’ fleet vehicle – that cost £12,000 new will cost just 18.74ppm to run plus an annual ‘standing cost’ of between £600 and £2,166 depending on any outstanding loan and depreciation. This means a ‘grey’ fleet driver can pocket as much as £2,853 in profit every year.

The Office of Government Commerce (OGC) recognises these overpayments and is not happy about them.

David Olima, the OGC’s ‘grey’ fleet project lead, said at a recent ING Car Lease forum that some public sector employers can be seen to be ‘incentivising people to travel in their own car’.

An OGC spokesman added: “We would never advise an organisation to pay above the AMAP rates.” (Fleet News: November 19).

Global conference must deliver on road safety say campaigners

The first ever global ministerial summit on road safety must result in urgent action and increased resources to tackle the growing humanitarian emergency on the roads of developing countries, the Make Roads Safe campaign has warned.

Ministers from more than 70 countries are meeting in Moscow today (Thursday, November 19) and tomorrow for the unprecedented global summit on the road deaths epidemic.

The UK delegation is led by Road Safety Minister Paul Clark and includes Driving for Better Business campaign director Adrian Walsh and AA president Edmund King.

Top of their agenda is the call to support a ‘Decade of Action for Road Safety’, first proposed by the Make Roads Safe campaign, which is led by the FIA Foundation.

Yet, says the campaign, time is running out. During the course of the two-day event 7,000 people will die on the world’s roads and 130,000 will be injured.

A new report by UN development expert Dr Kevin Watkins launched in Moscow by the Make Roads Safe campaign describes road crashes as ‘a one way ticket into poverty’ for many in the developing world. In some developing countries the cost of road crashes outweighs the amount they receive in overseas aid.

Road crashes already kill on the scale of malaria or tuberculosis and they are forecast to increase dramatically unless action is taken. Around 1.3 million people will be killed on the world’s roads this year and by 2020, almost two million people will die each year on the roads;

Campaigners hope the Moscow Conference will be the first step towards UN recognition for a Decade of Action for Road Safety.

Experts estimate that, with political support and increased financial resources, five million lives could be saved, and 50 million serious injuries prevented, in the next 10 years. (Make Roads Safe Campaign: November 19).

Price before beauty – cost is biggest cause of couple conflicts when buying a car

Couples argue more about the price when buying a car together, than any other purchasing consideration.

Research by online used car retailer Carsite.co.uk, found that in more than one in four cases (25.7%), money was the number one reason for getting into a dispute with their partner over what car to buy.

Second most frequent cause for ‘carguments’ was style, with just over 23% of drivers admitting they had clashed with their partners over what their potential new car should look like. Along a similar theme, colour was also a significant catalyst for debate for the motorists interviewed, sparking 19% of altercations.

“We’re not officially out of the recession yet, so naturally big purchases are going to be more closely scrutinised,” said Carsite’s Alistair Jeff. “Many household budgets are still tight, and when it comes to buying a car, it’s one of the biggest investments a couple can make together. So it’s perhaps no surprise that money is the biggest cause of contention in the car buying process.”

The least likely reason to cause a dispute was economy, responsible for just one in 30 disagreements. (Autowired: November 19).

Diesel returns to £5 a gallon

The price of diesel has hit £5 a gallon, according to the latest figures from the AA.

Diesel prices in the UK have risen on average 3.78p a litre, from 106.24p in mid October to 110.02p in mid November – the highest monthly rise this year, according to November’s AA Fuel Price report. Average petrol pump prices went up 3.67p a litre, from 105.07 to 108.74.

“Unlike this time last year, when supermarkets were falling over each other to slash pump prices, the average price of supermarket fuel has risen more than 4p a litre for petrol and diesel compared to around 3.75p for fuel prices in general,” explained Paul Watters, head of AA public affairs.

“On average prices, this has allowed retailers like Esso, Shell, Jet and Murco to undercut the more expensive supermarkets.”

Going to a supermarket may not be the cheapest option, unless it is an Asda, he said and added: “The growth in non-supermarket petrol stations that have added mini-stores and cut pump price margins to pull in customers is giving supermarkets a run for their money. This month’s figures suggest that some supermarkets are giving them the opportunity.” (Fleetnews.co.uk: November 19).

Scrappage scheme slammed by BMW chief

The Government’s scrappage scheme is ‘an opportunity missed’, according to BMW Group UK managing director Tim Abbott, who said he was ‘disappointed with its structure’.

Referring to the lack of green targets, he noted ‘there was a real opportunity to link the financial support to encourage the purchase of more fuel efficient, lower emitting cars.’

This is a model other countries have followed, where scrappage only applied to models producing carbon dioxide emissions levels below a set level.

However, that link was not made in the UK leading to Mr Abbott to express his disappointment in the scheme at BMW’s annual press dinner in London.

The event was also attended by BMW board member for sales and marketing Ian Robertson and was on the same day that the manufacturer unveiled its official car status for the 2012 London Olympics.

A key part of winning the bid was the company demonstrating its sustainability and eco credentials.

A wide range of low-polluting cars helped the organising committee make their decision.

The result will be a tightly managed fleet of 4,000 cars for the Olympics, explained Abbott.

All of which is an opportunity to ‘strengthen London 2012’s sustainability message’ – a goal that Mr Abbott feels scrappage has failed to capitalise on.

Meanwhile, Mr Robertson predicts 2010 will be a year of ‘gentle growth’ for the firm.

‘It will not be rapid,’ he said, but recent upturns in markets will continue.

BMW will end 2009 10-15% down year-on-year, he added. Currently, the figures are worse than this, but, said Mr Robertson, ‘the next six weeks will see solid growth to get to this target.’

What’s more, BMW says that it has remained in profit compared with the competition. The firm expects it will end 2009 as ‘the world’s largest premium maker, again,’ with sales in excess of one million vehicles. (Car Dealer Magazine: November 19).