Licencing needed to keep business honest

Road Freight NSW says ethical business are closing down because compliance costs are eating into their margins

Licencing needed to keep business honest
Road Freight NSW general manager Jodie Broadbent.


Compliance costs and shrinking margins are pushing some transport businesses to dangerously cut corners, Road Freight NSW has warned.

General manager Jodie Broadbent says today’s closure of Lismore-based Mills Transport is one example of the potential impact.

"The [Mills] family reached this decision for the reason that the transport industry no longer offers a return on their investment," she says.

"Their decision was, however, influenced by the current operating environment of the transport industry: the cost of regulation and compliance, taxes, insurance and in many instances a non-level playing field."

Broadbent says some operators are ignoring some of their compliance responsibilities and are thus able to offer more competitive rates.

"Competing against companies taking short-cuts has been difficult; seeing the awarding of work to these operators has been frustrating."

Road Freight NSW is now in favour of some form of operator licencing to ensure transport businesses maintain a level playing field.

"It’s time we stopped burying our heads in the sand about things that could potentially be very beneficial for our industry," she says.

Licencing would be "absolutely" beneficial in terms of safety, but also, crucially, in terms of business viability.

"We need to stand up for what we want to see in our industry. 

"Then maybe, just maybe, we wouldn’t see businesses like Mills Transport, so disillusioned with the game, they decide to shut their doors."

You can also follow our updates by joining our LinkedIn group or liking us on Facebook