McKellar focuses on 2.5% proposals based on outdated calculations
The Australian Government should not raise truck road users and registration fees beyond the expected inflation rate of 1.5% between 2021 and 22 years, said Andrew McKellar, CEO of the Australian Trucking Association (ATA). I will.
McKeller’s call is based on the announcement of ATA’s response to the government’s proposal to raise prices by 2.5 percent.
In the government’s proposal, peak agencies point out that inflation will be significantly higher and that many trucking businesses will incur more charges than they can tolerate.
“More than one-third of the trucking businesses we surveyed say their business activity is still depressed compared to just before the wildfires and pandemics began,” says McKeller.
“The tracking business is also very difficult to pass on price increases to customers.”
He emphasizes that the proposed 2.5% increase is based on inflation forecasts from May 2019.
“The Treasury’s inflation forecast for 2021-22 is 1.5%,” says McKeller.
“Truck prices should not go above this forecast.”
ATA will continue to discuss measures to make rates more fair and affordable and improve corporate cash flow.
“We need to ban payments longer than 30 days, increase price restrictions on truck tolls and port access fees, and change to allow businesses to pay truck registration fees by direct debit.” Says McKeller.
“In addition, some ATA members have expressed serious concern about the misuse of primary producer registration rights.”
ATA submissions can be found Here..
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ATA CEO calls on government not to raise truck prices
http://www.ownerdriver.com.au/industry-news/2103/ata-ceo-calls-on-government-not-to-raise-truck-charges/ ATA CEO calls on government not to raise truck prices