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Fears transport service procurers may hit back as costs rise
There are fears procurers of transport services may begin to hit back at the increased cost of moving goods, Transporting New Zealand says.
Fuel prices have sky-rocketed in recent weeks, due to the ongoing conflict in the Middle East.
Transporting New Zealand chief executive Dom Kalasih said the financial viability of businesses are at risk, if costs can not be passed on.
“There’s a lot of worry, and that’s about whether procurers of transport services, their clients and customers, whether they will be fair, reasonable, and responsible in paying the additional costs,” he said
“These are unexpected costs and transport operators, at the end of the day, they’re just price takers, they can’t control the price of fuel.
“These prices are significant and ultimately, whilst Transporting New Zealand is very careful not to be seen as price-setting, the reality is those additional prices have to be passed on and someone’s got to pay for them.
“Transport operators cannot wear these price increases and the financial viability of their businesses is at risk if they cannot recoup these costs,” he said
Kalasih said transport regulations should be urgently amended to allow certain trucks to carry higher payloads as it could improve fuel efficiency across the freight task and reduce diesel cost pressures.
File photo. Photo: siwakorn / 123RF
Heavy vehicle permitting regulations currently allow approved freight operators to run High Productivity Motor Vehicles (HPMVs) on state highways and local roads suitable for vehicles operating above the standard 44-tonne weight limit.
“I have written to New Zealand Transport Agency Waka Kotahi, asking the agency to consider how the heavy vehicle permitting regulations could be urgently amended to move more freight in fewer trips,” Kalasih said
“Increasing allowable payloads on 50MAX vehicles and other HPMVs could reduce the diesel required to move freight, while maintaining a safe and well-regulated system. That will put downward pressure on freight costs at a time when businesses and consumers are doing it really tough.”
“HPMVs are already delivering fuel savings compared to standard 44-tonne trucks. For example, 50MAX trucks increase freight capacity by approximately 20 percent while only increasing diesel use by 10 percent, with their additional axle ensuring no additional wear on roads per tonne of freight.”
“Improving freight efficiency also has benefits for safety and emissions, as fewer trips are required to move the same volume of goods.” he said.
On Sunday, fuel price tracking app Gaspy showed the average price for Unleaded 91 was $3.42.
Diesel is the same, while Unleaded 95 is $3.63.
The government has fleshed out its National Fuel Plan, outlining rationing measures that would be taken if supplies start running dry.
Resembling the Covid alert levels, the plan has four ‘phases’. New Zealand is at phase one.
Phase 2 would see homes, businesses and the public sector encouraged to conserve fuel.
The higher phases are still under consultation.
Phase 3 would see fuel prioritised for life-preserving services and phase 4 would see stricter intervention in fuel distribution.
Moving up or down levels is decided by a ministerial oversight group based on fuel stocks, restrictions and supply chain data.
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The chief executive of the Parliamentary Service is confident there will be enough room to accommodate the increased number of MPs and their staff coming into Parliament.
On current numbers, up to 131 MPs could be sitting in the Chamber following the election, brought on by a record overhang result.
Clerk of the House of Representatives Dr David Wilson told the Spinoff that currently the debating chamber had enough chairs to seat 124 MPs – including the Speaker of the House – and work was being done to accommodate more by altering the seating arrangement.
In a statement, Parliamentary Service chief executive Rafael Gonzalez-Montero said planning for a larger Parliament had been going for “some time”.
“Now that the election results have confirmed an increase to the number of members we are looking at several options.
“We are confident we will be able to accommodate all members within the Chamber.”
VNP / Phil Smith
Gonzalez-Montero said office accommodation for members and their staff would be “stretched” for a short time, but the new Members’ Building was only a few months away from “practical completion”.
That building – located behind Parliament – was due to be ready to occupy in April next year and had capacity to accommodate around 30 backbench MPs.
“All members should be in fit-for-purpose accommodation from that point,” Gonzalez-Montero said.
Following the 2023 election, 123 MPs sat in the Chamber – a record number at the time. That decreased to 122 following the resignation of National MP Judith Collins.
Collins held the seat of Papakura and stepped down in May and Parliament voted against holding a by-election because it was too close to the election.
The election result also meant high-ranking National Party MPs like Chris Bishop, Paul Goldsmith, Nicola Willis and Gerry Brownlee – Speaker of the House and an MP for 30 years – would likely not make it back into Parliament.
Only resigning or retiring MPs were permitted to give a valedictory speech meaning none of them would get the chance to give a valedictory statement.
Asked if their would be special allowances for valedictories, Wilson said in a statement that normally only MPs were allowed to speak in the House but the House could suspend its own rules or temporarily alter them.
“It could do so to allow former members to address the House.”
Wilson said no such arrangements could be made until the next Parliament opened and members sworn in.
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