Increased supply chain cost exposure for exporters of 190 million

Widespread speculation that Minister for Transport Martin Cullen may introduce a 4 metre maximum height restriction in the near future as has happened in other EU countries has exporters very concerned. The IEA points to the fact that 75% of HGVs on Irish roads are operating to a 4.6 metre and above height. A restriction to 4 metres would according to the IEA increase export supply chain costs by an average of 10%.

According to the IEA, this would increase export supply chain costs by an average of 10%. Indeed the cost burden to export industry of a 4 metre limit would be approximately E190 million per annum.

If the 4 metre height restrictions for HGVs currently being considered by Government come into effect there is no doubt that the negative impact on supply-chain productivity will be significant and will lead to job loses in the Irish exporting sector," said Mr Chris O'Shea, Manager of the Logistics Directorate at the Irish Exporters Association.

According to Mr O'Shea, the manufacturing sector would be hard hit but in particular the food processing sector; The food export sector, much of which is Irish-owned, has a particularly high supply chain cost as a percentage of sales and further cost increases such as that which will be brought about by a reduction in HGV operating height will inevitably force some companies out of their current markets served from Ireland," said Mr O'Shea.

At the Irish Exporters Association we call upon Minister Martin Cullen to not only ensure that there is no move to create height restrictions below 4.6 metres, but to lead a drive at EU level towards higher HGV height acceptance given that we in Ireland have the most to lose from any move to introduce further height restrictions," said Mr O'Shea. He noted that the Irish Exporters Association and the Employers block at the Social Partnership negotiations have expressed the view that the HGV height issue is one of critical importance to the competitiveness of the Irish manufacturing sector.

Given the importance that the exporting sector places on this issue we are pressing for an urgent response to our request to meet with Transport Minister Martin Cullen to outline our position. We also believe that any move to reduce the allowable heights for HGVs will be viewed by an already sceptical exporting sector as nothing more than an attempt to cover-up the fiasco at the Dublin Port Tunnel. Sadly, it now seems that no one in authority is willing to learn from the mistakes that were made during the Dublin Port Tunnel project because it now seems likely that the very same mistakes will soon be replicated in the Shannon Tunnel project in Limerick," reflected Mr O'Shea.

Mr O'Shea stressed that imposing unrealistic height restrictions is a short-sighted policy that fails to take into account the rapid development and innovation which is currently taking place within the road transport industry. He noted that a recent report from the Logistics Research Centre at Edinburgh University clearly shows that the use of high cube vehicles reduces costs to industry and consumers, as well as being beneficial to the environment.

Mr O'Shea concluded by renewing the Irish Exporters Association's urgent request for a meeting with Transport Minister Martin Cullen so he will be under no illusions about how seriously the exporting sector views any moves to further restrict HGV heights.