Transport minister told charges impact threatens operators’ livelihoods
A delegation of New South Wales and federal industry representatives and state transport operators have lobbied federal transport minister and deputy prime minister Michael McCormack directly over steep increases in stevedores’ unregulated ‘infrastructure surcharges’.
The move comes as this year’s crucial Australian Consumer and Competition Commission (ACCC) Container Stevedoring Monitoring Report looms – one that may define the future of such unilateral and ungoverned charges.
Top of the industry agenda is DP World Australia’s (DPWA’s) latest rise in what it calls the “infrastructure access charge” along with “container terminal ancillary charges”.
Read about reaction to DP World’s hike announced recently, here
Road Freight NSW (RFNSW) chief executive Simon O’Hara, accompanied by RFNSW members and the Australian Trucking Association (ATA), spoke to McCormack in Canberra’s Parliament House to reinforce their views to McCormack personally.
“Our members are angry that DPWA is continuing to use them as cash cows. And without regulation, they’re at the mercy of the stevedore,” O’Hara says.
“For the third time, in less than two years, DPWA has hit carriers with another round of excessive charges and with no real explanation and no consultation, industry is asking whether they’re just cynically increasing access fees to offset losses in other parts of the business. It’s wrong.”
“We told Mr McCormack the government must step-in to protect small businesses from the devastating effects these exorbitant port charges are having on their cash flow.
“Many of our members are small, family-owned businesses, already struggling with the combined effects of the drought, rising fuel costs and other operational issues.
“Some are telling us they’re on the brink of collapse – they just can’t take any more.
“These increased charges cannot be avoided by trucking operators; they have not been subject to detailed regulatory scrutiny and build additional costs into Australia’s supply chains.
The industry’s position is that the federal government should empower the ACCC to regulate such charges.
This should be done through the Heavy Vehicle Road Reform agenda and the proposed Independent Price Regulator for heavy vehicle charges.
“Alternatively, the Government could directly extend the ACCC’s jurisdiction to port access charges,” O’Hara says, insisting that with the ACCC’S Stevedore Monitoring Report due to be released “the deputy prime minister must act”.
Union anger stoked
Meanwhile, the TWU has again reiterated its opposition to the charges hikes, describing them as “deadly and destructive” and bound to result in result in further pressure on transport and lead to safety risks.
“We are operating in a highly sensitive environment where margins for transport operators are getting tighter. Death and injury tolls are already far too high,” TWU national secretary Michael Kaine says.
“Into this mix we have stevedores continuing to make matters worse by turning the screws and increasing the financial squeeze.
“This move is deadly and destructive and will ultimately hurt the trucking community and other road users.
“We have consistently called for an end to this money grab by stevedores.
“They are clearly operating in a manner free from regulation and are greedily gouging from transport operators and drivers which have little power to resist.
“The authorities have failed the transport community. The federal government is sitting on its hands waiting for the ACCC to finish its report on the issue, which stevedores continue their brazen attacks.”
The newly confirmed national secretary states the road safety watchdog closed by the federal government in April 2016 had begun an investigation into risks to safety in transport at the ports.
“By now we would have had a full investigation into this sector which would have exposed the financial squeeze by the stevedores, including late payment to transport operators, and its deadly consequences,” Kaine says.
“By now we could have had an Order in place regulating this industry and ensuring that safety at the ports are the number one priorities. Instead we have an imbalanced system which is unfair and unsafe, while those with the power to address it look the other way.”
The union states that in June last year, it was revealed that rent charges for stevedores in NSW ports had dropped, exposing the claim by stevedores that infrastructure fee hikes were necessary because of increased charges.