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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.
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