Ending Of Fuel Discount Package A Kick In The Guts For Transport Industry
Transporting New Zealand says the Government’s announcement that it will axe the transport support package next year is a kick in the guts for the transport industry.
Chief executive Nick Leggett says the changes will hurt both road transport businesses and consumers already struggling with rising costs and high inflation.
Road user charge (RUC) discounts will end as planned on January 31. The petrol tax cut has been extended until the end of March, but the subsidy will halve from the end of February.
Half-price public transport will also end on March 31, although it will still apply to people with community service cards.
Leggett says the industry has been totally ignored and kiwis will be hit hard in the pocket.
"Everything that travels on the back of a truck - and that is most things - will go up and add to inflation. That’s going to hit families and businesses who are already struggling.
"There should have been no debate - extend the transport support package to get New Zealanders through a tough time, until inflation starts to drop to below 6%. We know that inflation is likely to rise again in the first quarter of 2023. This was not the time to remove the support," Leggett says.
He says, however, the industry acknowledges that the Government heeded the call to bring in the transport package.
"This discount helped keep the cost of transport down, meaning less costs were passed down to consumers. Sadly, people can expect all costs to go up starting early next year."
The trucking industry carries 93% of freight and has repeatedly warned that fuel prices will continue to be volatile for a long period to come. Geo-politics and war will still disrupt supply into the future.
"We need a strong road transport sector and supply chain to help grow our economy out of recession and lower inflation. Today’s decision runs contrary to that."
Transporting New Zealand says the pressure on families will be too much as inflation is projected to rise again and remain high in 2023.