THE Government has met leading motor manufacturers to discuss the tax treatment of company cars and other key industry issues as it shapes Britain's future transport policy. Next spring the Government will publish its much-heralded white paper on an integrated transport policy and simultaneously its second Budget is expected to introduce measures which could have a dramatic impact on the UK fleet industry.

With the Labour Government committed to a policy of cleaning up the environment and reducing car usage, it invited Britain's top manufacturers and the Society of Motor Manufacturers and Traders to a meeting with officials at the Department of Trade and Industry. In addition separate meetings have been held at the House of Commons between Labour MPs, including Bob Ainsworth (Coventry North East) and Fraser Kemp (Houghton & Washington) who both represent car manufacturing areas, the SMMT and manufacturer representatives.

The round table talks, which some manufacturers described as 'a brainstorming session', were welcomed by the motor industry. A spokesman for the SMMT said: 'The meeting was constructive and positive. Relations between the motor industry and the Government are good and dialogue between ourselves and the Government takes place on an almost daily basis.'