CONTRACT hire firms have been accused of 'burying their heads in the sand' and avoiding investment in systems that could help fleets stay up-to-date on CO2-based company car tax. Grosvenor Contracts has sparked an industry row with the attack on rivals for their lacklustre response to warning customers of the impact of the new tax.

Managing director Shaun Barritt said: 'More than 35% of our clients have expressed concern as to what action they should take to lessen the impact of CO2-based BIK tax. In many instances, contract hire companies have been unable or unwilling to raise their clients' awareness of the potential implications of the legislation and in fact could be accused of burying their heads in the sand.'

But rival firms were swift to defend their positions, including Lease Plan, which recently launched Lease Plan Driver, a web-based service for company car drivers which includes a guide to CO2-based company car tax. Head of marketing Jianni Geras, said: 'We have been very proactive in giving the importance of CO2 emissions a high profile.'

A spokesman for GE Capital Fleet Services said: 'We give our customers as much information as we can to make sure they are prepared for changes to their role.'