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FTA Manager’s Guide to Distribution Costs

Hauliers make rising fuel prices an election issue

January 27, 2011

Hauliers have vowed to make the impact of rising fuel costs a General Election issue unless politicians engage in negotiations to address the issue as a matter of urgency.

The Irish Road Haulage Association (IRHA) is calling on the Government to immediately introduce a fuel duty rebate for tax compliant licensed hauliers.

The Association has warned that its members can no longer absorb the increases in fuel costs which it says rose by 17% alone during 2010 forcing over 200 haulage companies to fail or cease trading.

The issue will top the agenda when the Association’s National Council meets this Saturday when a decision will be taken regarding the immediate course of action that its members wish to pursue.

“Our members are angered by the outgoing Government’s failure to address our proposal to introduce a fuel duty rebate for tax compliant licensed hauliers, and believe that the protection of their jobs should be a priority for all political parties in the forthcoming election,” said Mr. Vincent Caulfield, President of the Association.

The Association is also urging its members to enter into negotiations with consignors in respect of introducing a diesel surcharge as the most effective means of maintaining price competitiveness and of protecting Ireland’s export business.

“We are hopeful that consignors can be brought to understand the financial pressures that existing arrangements are placing upon licensed hauliers and the necessity to introduce a diesel surcharge to maintain existing levels of service,” Mr. Caulfield added.

The Association revealed that the price of diesel has risen by 18 cent per litre, inclusive of carbon tax or the equivalent of 17%, during 2010 while the additional 2 cent Budget increase in the price of diesel has increased the annual cost of keeping just one truck on the road by as much as €3,000 annually.

“These continued increases in fuel costs are unsustainable for our industry. Our members have had enough and they are clear on the only solutions available to them to protect their businesses and the service that they provide to customers,” said Mr. Caulfield.

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