The National Road Transport Association (NatRoad) has welcomed the Federal Government’s fuel relief announcement as a good first step, but cautioned it will not be enough on its own to stop trucking operators from collapsing under the weight of skyrocketing fuel costs.
NatRoad CEO Warren Clark warned more immediate relief measures, including suspending the road user charge and disaster-relief style payments, are also needed to prevent widespread business closures.
“We are also asking the Federal Government to request that banks and equipment lenders implement a six-month moratorium on equipment lending repayments for the heavy vehicle industry, similar to the support provided during COVID,” Mr Clark said.
“This can be delivered through existing lender hardship policies, with interest still payable at the end of the period.”
“This measure would give operators critical breathing space to manage their cash flow while fuel cost pass-through mechanisms take effect.
“For some operators it might be the difference between being able to survive and having to park up their trucks and let employees go.”
Mr Clark said it was good to see the Federal Government recognise the importance of the sector, but added there was significant uncertainty around how the changes would be implemented and whether there are any unintended consequences for the industry from making these changes to the Fair Work Act.
“Allowing faster contractual chain orders will help ensure fuel cost increases can be passed through the supply chain more quickly, but truck operators are still carrying the cost upfront. Many will still be paying for fuel weeks before they see any return through their contracts.”
“For businesses already operating on razor-thin margins, that lag is putting enormous strain on cash flow.”
Mr Clark reiterated that more immediate, direct relief was essential.
“We cannot lose sight of the fact that businesses have already reached breaking point,” he said.
“As we’ve been warning, some operators are parking their trucks and walking away because they simply cannot make the numbers work.”
NatRoad will continue working constructively with Government while advocating for immediate and practical measures to stabilise the industry and protect supply chains.
“We support this initiative, but it must be part of a broader package,” Mr Clark said.
“If we don’t act decisively now, we risk seeing more transport businesses close — and that will ultimately drive up the cost of goods for every Australian.”
NatRoad reminded members it is continuing to provide support during the crisis.
“We are fighting for operators and encouraging members to seek out the resources, advice and support available through the NatRoad website during this incredibly challenging time,” Mr Clark said.
