Australian Livestock & Rural Transporters Association & Livestock & Bulk Carriers Conference
1st March, 2013
Newcastle Jockey Club1 March 2013
John Beer, President, Australian Livestock and Rural Transporters Association, Barney Hayes, President NSW Livestock and Bulk Carriers Association, other distinguished guests, ladies and gentlemen, good morning.
Thank you for the opportunity to address your conference today in Newcastle.
Australia's trucking industry is an incredibly important part of our economy and the rural transport sector is no exception, providing the vital logistical link between the community and Australian businesses and agriculture - the wheels of the nation.
As we know, over two-thirds of the produce we grow is exported so having efficient and effective logistic links between our farms and our ports is essential to our success.
With forecasts indicating that our national freight task is set to double over the next decade, our focus on the heavy vehicle industry as an integral part of our transport and logistics network is set to become more and more important over time.
Today I would like to touch on a number of the policy issues the Coalition is working on ahead of the federal election to be held later this year that will affect the road transport industry.
National Heavy Vehicle Regulator
For many years the heavy vehicle industry has struggled to cope with the various conflicting, contradictory and often confusing regulations that affect businesses operating across state boundaries.
The progression towards harmonisation has been painstakingly slow.
Over the years, State Governments have failed to respond to industry needs and improve efficiencies by implementing nationally consistent transport regulations, often even when they have signed agreements at COAG to do so.
NSW has been the biggest proble, but I want to acknowledge the work that has been undertaken by NSW Minister Duncan Gay in this area. He has brought common sense to the way that many heavy vehicle regulations are interpreted and applied.
In July last year the Minister extended width concessions for the transport of agricultural commodities like wool, hay and cotton, for five years.
This has saved producers and rural transporters from illogical fines and penalties because the regulations simply didn't take into account the reality faced by many rural transport operators, especially those who repeatedly need to cross state borders.
On a broader level, the National Heavy Vehicle Regulator has the potential to be of great benefit to the industry with some estimates suggesting a potential gain of $12.4 billion over the next 20 years.
The NHVR began some of its basic functions on 21 January and is set to be fully operational in a few months' time. Work is continuing to progress towards its implementation.
Earlier this month the second bill making up the National Heavy Vehicle Regulator package passed the Queensland Parliament and I understand the legislation enacting the heavy vehicle regulator was scheduled to be debated in the NSW Parliament this week.
After talking with businesses across the country, we have heard time and time again about the need to address mounting compliance costs.
To this end, the Coalition has set an ambitious target of committing to cut red tape by $1 billion per year.
A recent survey by the Australian Chamber of Commerce and Industry found that 73% of businesses reported greater increases in regulation over the past two years. I wonder where the other 27% are. After all, despite promising a one-I, one-out policy on regulations, Labor has actually introduced over 18,000 new regulations and dissolved less than 90.
60% of businesses reported spending over $5,000 a year just meeting regulatory requirements.
Regulation and compliance costs in the road transport industry is an area of focus within my portfolio and I can confirm that if the Coalition is elected later this year we will continue to pursue regulatory harmonisation to build a truly national and seamless road freight sector.
Carbon tax
It's not only compliance costs that are on the rise in the heavy vehicle industry.
As you would be well aware, if the Prime Minister has her way the carbon tax will hit the heavy vehicle industry in just 16 months' time through changes to the fuel tax credits system.
The Prime Minister confirmed her intention to hit heavy vehicle operators with this extra tax last week in Adelaide saying:
'There would be carbon pricing for heavy road haulage, that's part of the carbon pricing package'.
The Australian Trucking Association has estimated that the carbon tax will cost $510 million in its first year of operation, putting truck operators under additional financial pressure at a time when general fuel increases and higher registration charges are already biting hard.
This is on top of the carbon tax increases that have already been experienced by those truckies using refrigerated trucks. Because of the mix of gases used in refrigerants and their global warming potential index, the increase is not $23 per tonne as advertised, but over $70,000 a tonne!
If you recharge a fire-extinguisher the carbon tax could be worth up to $500,000 a tonne.
The election to be held later this year will offer a clear choice with the Coalition firmly committed to abolishing the carbon tax in its entirety and in doing so, provide immediate relief to Australian businesses and families.
Road Pricing / Road User Charge
As you would also be aware, from 1 July last year the Road User Charge was increased by over 10%, reaping an additional $700 million over the next four years into the Government coffers.
After listening to the industry's concerns and meeting with a number of different industry groups, including ALRTA, the Coalition decided to oppose this significant increase in Parliament.
We are not oppsed to cost recovery, but it was obvious that the consultation undertaken was inadequate, the doubts raised about the National Transport Commission's calculations warranted further investigation and that a review into the charge which was already underway should have been allowed to reach its conclusion before a massive increase was contemplated.
Just one of the many problems highlighted by ALRTA was that they believed that the formula overcharged road trains by $27.9 million per year - a 40% gouge - and as such the principle of cost recovery which has long been supported by governments and industry was clearly not being upheld.
We were also alarmed by the huge and inexplicable difference in the number of trucks on the road between the figures used by the regulator and state registration numbers and the amazing discrepancy of a huge underpayment from past years which was only discovered after the industry consultation had concluded.
When my disallowance motion came for a vote in the House of representatives the vote was tied 65-65, the Labor appointed speaker used his casting vote to decide in favour of the Government. Disappointingly, Tony Windsor, who represents a regional electorate heavily reliant on road transport voted with the Government to defeat the Coalition's move. Had Mr Windsor stood up for the heavy vehicle industry in his electorate this new cost impost would have been killed-off.
I understand that the negotiations into the next evolution of road pricing policies are ongoing.
A new determination will be due in time for the next road user charge update on 1 July 2013. We will be watching to see that the process and accountability and consultation has improved since last year's debacle and that the outcome is fair and justified by the facts.
If not we will again test the determination on the floor of the House.
This process, which was started by the former Coalition Government in April 2007, is designed to look at alternative pricing models to see if we can implement a system which better reflects industry realities.
Last year this process was renamed the Heavy Vehicle Charging and Investment reform, which has become known as havoc.
The Coalition will have more to say about road pricing models following the release of the Regulatory Impact Statement in the middle of this year and will weigh up the costs of each of the proposals being considered, as well as role that new technology will play in implementation.
Rest assured that we will not make any changes to road pricing arrangements without thorough and broad industry consultation.
Rest stops and road funding
Finally, I want to touch on the topic of infrastructure investment, and particularly road investment as it directly relates to your industry. The Coalition has nominated infrastructure as one of the five pillars of economic renewal in Australia.
As we are meeting here in Newcastle it seems only appropriate to start with the Coalition's commitment to the Pacific Highway duplication.
In addition to a number of transformational capital city road projects, the Coalition has announced our plan to fully fund the duplication of the Pacific Highway all the way from Hexham to the Queensland border as soon as possible.
The Coalition will provide $5.6 billion to end the political games about funding splits and get the duplication done, once and for all.
A Coalition Government will make the duplication of the Pacific Highway a reality by guaranteeing $5.6 billion for the project, including over $2 billion in new funding being transferred from the Epping to Parramatta rail line project, which will not proceed any time soon.
I have driven the road many times and late last year Tony Abbott spent a few days in your shoes driving a truck along the Highway to highlight the need to finish the duplication.
There is no doubt that completing the Pacific Highway duplication, like the Hume Highway duplication which is finally nearing completion, will save lives, reduce travel time and cut freight costs.
The Coalition is also committed to constructing the Toowoomba Second Range Crossing in Queensland. I recently attended a conference hosted by the Toowoomba Council and took the opportunity to reaffirm our support for this much-needed project.
Toowoomba has always been a key logistics hub and the bypass is a vital link for the fast growing gas and minerals province of western Queensland and for interstate freight to the north and south. Its construction will reap benefits for the Toowoomba community, freight productivity and of course road safety.
We will have more to say on specific projects on our other freight routes like the Bruce Highway, as we get closer to the election.
And let me assure you of our continuing commitment to lead roads and our signature Roads to recovery and Blackspots program.
Rest stops
As you may be aware, at the last Federal Election the Coalition committed to building an additional 500 truck rest stops over the next ten years to bring the 22,500km of Australia's national highway network into broad compliance with the National Transport Commission's guidelines.
With truck drivers facing mandated rest breaks as a result of government regulation, we must ensure that the facilities are available where needed to assist with compliance.
While some rest stops have been built since the last election, much more work needs to be done to ensure that the road transport industry, particularly when operating in regional and remote locations, has the support it deserves.
Bridges
We can also make our road transport industry more efficient by upgrading the many local bridges that are in a state of disrepair and no longer able to cope with heavy vehicle traffic.
Many of our 20,000 local bridges across the country are nearing the end of their life but despite this, substantial upgrades are often beyond the resources of local governments.
Mass limits are becoming more common and in some cases bridges have had to close.
The economic and social impact on regional communities as a result of these restrictions will only increase over time as the school bus is no longer allowed on the local bridge and our farmers and industry can't efficiently get their goods to market.
I was pleased to read last year's announcement by the NSW Government that they would upgrade or replace 17 key bridges in across regional NSW over the next five years through their 'Bridges for the Bush' program.
They have estimated that upgrading just 5 of the priority mass limit bridges will remove 8,000 heavy vehicle trips from local NSW roads each year, saving $200 million in economic, social and environmental costs over the next 20 years.
Think of what benefits we could achieve if we had a national program to replace and restore these bridges that are holding back regional communities and disrupting the efficient movement of freight across the country.
To this end, at the last election the Coalition committed to providing $300 million over four years to be matched by state or local governments, to restore and rebuild local road bridges.
While Labor failed to match this commitment, we remain committed to the program as we recognise the economic and social importance of this infrastructure.
In conclusion, can I once again thank you for the opportunity to address your conference today.
I can assure you that the Coalition acknowledges the important role of rural transport in our broader logistics network and we know that your importance will only increase in the years ahead.
I look forward to continuing to work with you all in the future to ensure that we have the best possible regulatory environment and infrastructure to allow you to go about your business.
Thank you.
[ENDS]
