Transporting New Zealand

The rapid rise in fuel costs has been eye-watering. New Zealanders are now paying three times what they were in the early 2000s, with much of that increase taking place over the last year.

by Nick Leggett Chief Executive

to learn that the Government has decided to roll over the temporary reduction in fuel excise and RUCs until January 2023. One look at the state of the economy and the rising cost of living clearly shows that the last thing kiwis could afford was a 25-cent jump in petrol prices and a 36 percent hike in RUC rates.

Since June Ia Ara Aotearoa Transporting New Zealand has been publicly advocating for an extension to the RUC and fuel excise reduction and I am pleased that the Government has listened and chosen not to impose this further cost pressure on families and businesses. Many kiwis are only just keeping their heads above water as it is. The Prime Minister, when asked by media, did not initially commit to any continuation of the scheme beyond the winter and pointed to the $350 cost of living payment declared in the Budget as a reason for that. I never considered that a tenable position given that half the $27 per week payment would have been wiped out straight away as fuel excise and RUC rates returned to their full amount. In many ways consumers end up paying for fuel hikes twice – once as they fill the family car and secondly every time they pull out the eftpos card to make a purchase. Extending the RUC reduction will help temper freight

transport costs, lessening further price rises on everything consumers buy, including food and groceries, medicines and other necessities.

Transporting New Zealand recently undertook an exercise that showed that the cost of fuel as a proportion of a transport business’s costs has gone up from about 15 to 20 per cent in 2020 to 30 to 35 per cent now. Wages and other costs have also been increasing. All these extra expenses as well as the extra expenses occurred by producers and retailers have to be passed on down through the supply chain and inevitably end up with the consumer.

The Government, as all governments constantly have to do, must balance competing needs, and in this case, they have had to balance the rising cost of living with the requirement to adequately fund the National Land Transport Fund. I understand the reluctance to further reduce funding into the Fund, and I support that principle in theory, but with the economic situation even worse than it was, providing families and businesses with this small relief has been the right thing to do. To do otherwise would have been to risk some very serious economic and social consequences down the track.

Mike McRandle joins Transporting New Zealand team

I am really excited to welcome Mike McRandle to the Transporting New Zealand team.

Mike has recently begun leading our team of regional and sector advisors and comes to us after a distinguished career in the Police where he headed the South Island Commercial Vehicle Safety Team (CVST) and became Vice President of the NZ Police Association.

Coming as he did from CVST, this isn’t a situation where ‘game-keeper turns poacher’, and is in fact an opportunity for the industry to tap into Mike’s experience to further improve our understanding on compliance issues. I know our team of regional and sector advisors are already gaining a lot from Mike’s expertise and I expect that that will translate to benefits for our members.

Lawyer Billy Clements has also recently started with us in a policy role and is a further signal to members that Transporting New Zealand continues to diversify our expertise to provide members with the best possible representation.

Transporting New Zealand Industry Award nominations now open

With the threat of lockdowns firmly in the rearvision mirror I am pleased to welcome the return of the Transporting New Zealand Industry Awards.

These awards recognise individuals, organisations and companies in and around the road transport industry that have gone above and beyond industry requirements in raising skills, safety practices, knowledge, training, industry awareness, innovation and expertise. The awards also honour activities and achievements that ultimately improve the daily lives of the public and those in our industry, and ensure the industry is a rewarding and safe environment to work in.

Nominations for the Transporting New Zealand Industry Awards are made by members of the industry and I would encourage all those that work with or alongside an organisation or individual they believe are deserving of recognition to get a nomination in. Entry Guidelines and the nomination form can be found at https://www. transporting.nz/our-events/industry-awards. Nominations can be made up until 27 August 2022.

The awards will be presented at a gala dinner following the conclusion of The Road Ahead Conference in Invercargill on 29 September.

Registration for the Conference is available at https:// conference.transporting.nz. Time is running out if you want to get the early-bird discount and I’d also recommend those that need accommodation to get in as early as possible. T&D

Mike McRandle is now leading Transporting New Zealand’s team of regional and sector advisors.

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