Driving the economy
Transport businesses face stress despite RUC discount extension
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Survey results clearly highlight many operators are facing increased anxiety and stress caused by cost pressures.
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by Nick Leggett Chief Executive
EG31584
Ia Ara Aotearoa Transporting New Zealand
E ARE DELIGHTED THE Government has heeded the call from Transporting New Zealand to extend fuel tax discounts and the reduction in road user charges (RUC) until early next year. It’s a good win and it shows our association is a proven and effective voice for our industry. In recent weeks we had written to the minister and spoken with officials and media about the need to extend the RUC discount. Our recent survey showed that 96% of the industry supported our move to secure the extension, and over 40% of transport businesses said that their costs would be eased by the continuation of the road user charge discount. Road transport is massively impacted by the cost of fuel. Only a year ago, 20% of companies said that fuel made up a quarter of their total business costs; today almost 70% of the industry report that fuel is in excess of 25% of costs. Stress and anxiety on the rise Over three-quarters of operators listed increased anxiety and stress caused by cost pressures as their biggest concern; the second was financial strain at 70%; and the third was the inability to pass on those increased costs to customers. We are urging businesses to contact Transporting New Zealand if they have had cases of customers deducting the RUC discount from invoices, or being instructed by customers that they must pass the discount on. We can then seek legal support on behalf of members. Almost half the industry say they are cancelling or delaying
capital investment. That’s not spending on new trucks, plant and equipment, and there will be a downstream economic consequence of this. Economist Cameron Bagrie warns of the risk of stagflation, which is high inflation and low growth, and that appears to be where New Zealand is heading. In this stressful environment, it’s important to say look after yourselves and your staff, many of whom will be under significant stress because of rising household costs, or postCovid trauma. As an industry, we have traditionally been pretty stoic but when people are under stress, they need to ask for help. Transporting New Zealand can arrange support for you through counselling services or advice on any aspect of your business. For example, Cameron Bagrie, who is a close adviser and supporter of the industry, can help businesses arrange finance. Wild weather also takes a toll It’s winter so we have got to expect bad weather but last week has been extreme. We are seeing the result of poor investment in the roading network and we are also seeing the impact of climate change and more extreme weather events. It’s a perfect storm. In the Buller area, a slip blocked vehicles in exactly the same place where there have been previous slips. Good infrastructure maintenance and a decent capital fund would ensure that this wouldn’t happen again in the same place. Last year, South Canterbury experienced what authorities called a “one-in-200year storm”. Well, it’s happened again this year. Taranaki operators also told us about the poor condition of Truck & Driver | 41
