Transport Costs: RUC Increase Well Telegraphed By Govt
September 1st, 2010
About the only good thing in the Govt’s confirmation Road User Charges will increase from October 1 is this time there has been, as promised, a warning to this effect. Two years ago truckers demonstrated in front of Parliament when the then Labour Govt upped RUCs overnight, earning the sector’s ire and a degree of public sympathy. The exact RUC increase will depend on truck size and axle configuration, though typically heavy diesel vehicles will pay between 4-6% more in RUCs and lighter trucks up to 10% more in RUCs. This is in addition to a previously announced increase of 3 cent/litre in fuel excise duty. RTF CEO Ken Shirley says “we’re grateful for the RUC notice. But it also comes along with an increase in GST at the beginning of October, Emissions Trading Scheme cost increases and a massive lift in ACC levies. It makes it tough, when as it is some operators are only just hanging on.”
Shirley says because of their extremely tight margins, transport operators will have no option but to pass the cost increases onto their own customers. He points out, as do economists, freight is always at the cutting edge of economic performance. “Freight permeates all parts of the economy. When there’s a downturn in the economy, there’s a downturn in freight and vice-versa.” Shirley says the past year has been extremely tough on the transport industry and a number of businesses have failed. He expresses the hope there will be no RUC price increases next year, “especially as it is an election year after all.”
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