The fallout over the deal to buy back Toll Holdings’ rail operations is continuing with the local transport industry upset the Commerce Commission has not investigated the deal, Local trucking industry leaders say the deal whereby Toll Holdings will get a six year rent holiday on major freight depots it uses for its trucking operations, worth millions of dollars per annum, is anti-competitive. It will also give Toll an unfair advantage over local companies which still face fixed costs for their depots. The Commission has received complaints about the free rent aspect of the sale agreement but despite this will not investigate the situation.

Foreign Subsidy. Road Transport Forum CEO, Tony Friedlander, says the subsidisation of Toll’s depots could be worth up to $20m per annum and it is very concerned such subsidies could be part of the final agreement due to be settled on 30 June. “Why would the NZ Govt want to subsidies an Aust trucking company to come and pick off NZ trucking companies?” However, Govt officials are trying to allay fears the deal will unduly favour Toll’s NZ operations saying other trucking companies could be allowed access to the subsidised depots. Meanwhile Mainfreight CEO, Don Braid, claims the Govt is also offering Toll rate discounts of up to 54% to use certain rail routes to secure freight for the new rail operator. He says such an inducement, if allowed, will create an environment where local transport companies do not trust the new rail operator in terms of pricing transparency. Any such deal could dissuade Mainfreight from boosting its use of the rail network.

QUOTABLE: “We wont stand back and allow ourselves to be raped and pillaged by foreign transport companies.” - Don Braid, CEO Mainfreight

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