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Trucking lobby revs up over Greens' rail freight plan

Thursday 22 July 2010

Greens lead Federal Senate Candidate for NSW Lee Rhiannon is standing by her party’s call for more freight to be transported by rail not road, despite a rejection of the plan by the Australian Trucking Association today.

“Even considering the very latest b-double registration charges, it’s clear that current fees are lower than they should be and that the trucking industry is by no means paying its way,” Ms Rhiannon said.

“Since b-double registration charges were introduced in the late 1980s the charges have fallen in real terms. In 1989 the NSW annual permit and registration fees for an 8-axle b-double were $12,650 a year. With CPI increases, that fee should now sit on more than $23,000 but the actually fee charged is lower at $14,770.

“The methodology used to set current b-double registration charges has been characterised as ‘conservative’ by the Productivity Commission when compared to international standards.

“These low b-double registration charges are effectively a hidden subsidy for the operations of heavily laden trucks that haul longer distances each year.

“These subsidies have helped to boost the number of large b-doubles on our roads in recent years, up from 700 in 1997 to more than 6,000 currently.

“2006 research shows that approximately $1.5 billion is lost annually through the under-recovery of road system costs imposed by b-doubles, road trains and semi-trailers.

“We then need to add to this an additional $1.5 billion annually for the social and environmental costs of these heavy vehicles, including costs generated by crashes, air pollution, noise and greenhouse gas emissions.

“Today’s response from the trucking lobby to the Greens’ plan for getting more freight on rail is predictable. Its profits are under threat by any proposed increase in road pricing.

“That’s why the trucking industry rejects the Henry Tax Review’s recommendation for mass-distance location pricing for heavy vehicles to help pay for their specific marginal road-wear costs. Many economists, along with the Greens, support the implementation of these transport recommendations which would see more freight go by rail.

“Road pricing reform, to help shift freight from road to rail, is long overdue.  Research shows that if just 15 percent of road freight task was transferred to rail we could stop 45 road deaths a year. Putting 10 percent of road freight task on rail would save 250 million litres of diesel fuel a year.

“The Australian Trucking Industry is running a scare campaign by claiming that the Greens plan would see supermarket prices increase. Rail already plays a valuable role in stocking the supermarket shelves of Perth, Darwin, Cairns and other cities,” Ms Rhiannon said.

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