GOVERNMENT and local authority fleets must pioneer operational use of alternative fuels to set an example to the rest of the business community according to a new report from the House of Lords.

The Science and Technology Select Committee's report - Towards Zero Emissions for Road Transport - emphasises the role alternative fuels can play in reducing air pollution and urges the public sector to take a lead. The report also attacks the oil industry for failing to recommend more stringent fuel quality standards for the European Union's forthcoming Auto Oils programme and suggests significant changes to the current system of fuel and vehicle taxation.

The report acknowledged that much progress had already been made by the manufacturers in reducing vehicle emissions, but said further improvements along with the increasing use of alternative technologies, were essential. It also says alternative technologies were ideally suited to city-based depot fleets and recommends financial incentives to encourage taxi and bus operators and other fleets to replace their vehicles with electric or gas-powered alternatives.

Members of the select committee called on the Government to lobby for higher fuel quality standards within the Euro 2000 targets.