A FUEL tax protestor in County Durham said hauliers are being forced out of business by the continual increase in operating costs.

Leadgate farmer Andrew Spence said he is amazed that the cost of running articulated lorries is only estimated to have risen by between 4.9 and 5.6 per cent during 2004.

He was speaking following publication of figures by the Freight Transport Association which claim that the cost of operating 44-tonne lorries rose by 5.6 per cent this year, while for a 17-tonne rigid lorry the increase was 4.9 per cent.

This was compared to the Government's measure on inflation, the Consumer Price Index, which was running at 1.5 per cent up to the end of November.

The association said the increase in operating costs is mainly the result of high fuel prices during the year.

Mr Spence said: "It seems to have been a lot more, I'm surprised the figure is not something like ten to 12 per cent. That's why so many transport companies are packing in. How can we compete with competitors from the Continent?

"They have a 22 per cent head start on us on their operating costs."

Mr Spence said hauliers need to have at least £120,000 a year income guaranteed before they can consider making a return in operating a 44-tonne lorry.

"The problem is if you're already in the transport business you can't get out, because second-hand wagons are almost worthless."

Mr Spence plans to concentrate purely on the farming side of his business in future as he believes there is no future in haulage.

The People's Fuel Lobby abandoned plans for a go-slow protest last year after Chancellor of the Exchequer Gordon Brown opted against a fuel duty increase.