Irish Trucker logo

 


SearchTrucker



 

Since September 2000, when hundreds of truckers took to the streets in protest at spiralling fuel prices, the road haulage industry - particularly its largest representative body, the Irish Road Haulage Association - has favoured a partnership approach with the Government in an attempt to solve the sector's ongoing problems. John Loughran contends that a return to direct action is once again need to highlight the plight of the industry. You have to hand it to the farmers, especially the Irish Farmers' Association.

Its leader John Dillon hardly exudes charisma and he probably won't win any accolades for public speaking, but he certainly knows how to rally the troops and get public opinion on his side. The recent week-long tractorcade drummed up an unprecedented interest in farming, the likes of which hasn't been seen for many a long year. Such was the mastery of the IFA's protest, practically the whole country became immersed in the plight of the farmers. The national media in print, radio and TV feasted on the topic for more than a week. There was only one winner in this bout. The farmers won hands down.

Agriculture Minister Joe Walsh was sent hurtling to the canvass before a serious blow was struck. He made it to his feet before the count, but was picked off at will by the wily farmers at every opportunity for the rest of the contest. The farming lobby has never been afraid to mix direct action with negotiations on behalf of its members. Now that direct action has been taken and the farmers have flexed their muscles, the serious negotiations will go on behind closed doors.

The Irish Road Haulage Association, has shied away from direct action since it orchestrated the September 2000 fuel protest, preferring to engage in dialogue through the Government Task Force to further the cause of the road haulage industry. However, desperate times call for equally desperate measures and the IRHA may well have to reconsider its position in relation to adopting a non combative approach to problem solving. Despite the best efforts of the IRHA, the government seems to have drifted into a state of indifference in relation to the road haulage industry. Once again the haulage sector is being treated as a cash cow that can be milked at Budget time, rather than a vital cog in the economy.

This cash-cow mentality reared its ugly head once again in the December 2001 Budget. Finance Minister Charlie McCreevy increased the excise duty on diesel by three cent per litre, while leaving petrol unchanged. At a conservative estimate this increase will add about Euro 2,500 to the running costs on an average truck in a full year. Within days Environment Minister Martin Cullen slapped 12 per cent onto the annual cost of motor tax. These cost increases will have a very serious impact on a road haulage industry that is already struggling under the weight of spiralling insurance premiums, and a very noticeable slowdown in economic activity.

Unquestionably, the IRHA laid out the exact extent of the industry's woes in its pre-Budget submission last year. Without doubt, it urged Finance Minister Charlie McCreevy to leave excise duty on diesel unchanged and to steer clear of a motor tax increase. However, the IRHA's pleas were not taken on board. In the aftermath of the Budget, the national media paid only lip service to the road haulage industry. The increase in excise duty on diesel and later the increase in motor tax were viewed only in terms of the private motorist. Despite the promptings of the IRHA, the plight of the haulage community was largely ignored. In the December Budget, Finance Minister Charlie McCreevy signalled his intention to introduce a carbon energy tax from the start of next year.

This tax will be levied on fossil fuels such as coal, peat and importantly oil based products such as diesel and petrol. Recently Environment Minister Martin Cullen warned that the introduction of a carbon energy tax regime can no longer be avoided. Minister Cullen has told his Cabinet colleagues "the tax must be levied on the basis of the carbon content of each fuel, rather than a flat energy tax." When this new tax is introduced it will have a profound effect on the road haulage industry, and will seriously impact on profit margins. It could well be the tax, that broke the hauliers back, so to speak.

Hauliers will be forced to pass this tax on to the customer - the days of absorbing costs increases are at an end. This will have cost implications for the customer. A loss of competitiveness, company closures and jobs could result. The proposed introduction of this tax has raised the hackles of IBEC, ISME, the SFA and the IRHA. These representative bodies have been vocal in their opposition to this tax, yet their protestations and their concerns will come to nothing unless direct action is taken. The IRHA has shown in the past that it has the stomach for direct confrontation. It orchestrated the fuel protests in September 2000. Last year it organised a demonstration at the Dail in protest at spiralling insurance premiums. perhaps the time has come for the IRHA to mobilise the troops.


© 2007 Lynn Publications. All Rights Reserved.