Transporting New Zealand

Transport businesses face stress despite RUC discount extension

Survey results clearly highlight many operators are facing increased anxiety and stress caused by cost pressures.

by Nick Leggett Chief Executive

Ia Ara Aotearoa Transporting New Zealand

WE 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

Cameron Bagrie will help Conference delegates understand the current state of the economy and where we are heading.

roads in their area. We made the case with Waka Kotahi and the media. Operators lost tyres and had damage to gear as a result of roading conditions.

Eighteen months ago, I talked to the agency and gave them exact spots between Hawera and New Plymouth where there were big maintenance mountains. Much of that work was done but now there are other places requiring maintenance. We are not attacking Waka Kotahi or contracting staff; they are frustrated, too. This is a political decision to underfund roads. It’s up to the Government to spend more to keep up with the maintenance mountain to improve roads and to ensure we don’t keep going backwards.

If you know of a road that has damaged your vehicle and you’ve got photographic evidence of the road and damage to your vehicle, then please send it to us so we can advocate on your behalf. T&D

Ia Ara Aotearoa – Transporting New Zealand PO Box 1778, Wellington 04 472 3877 info@transporting.nz Nick Leggett, Chief Executive 04 472 3877 • 021 248 2175 nick@transporting.nz Mike McRandle, Regional & Sector Manager 027 556 6099 Keith McGuire, Region 2 027 445 5785 Sandy Walker, Region 3 027 485 6038 John Bond, Region 4 027 444 8136 Jim Crouchley, Region 5 027 261 0953

www.transporting.nz