The National Road Transport Association (NatRoad) has expressed deep disappointment with the final Report from the 2023 NSW Independent Toll Review, claiming it has failed to heed the concerns of the transport industry.
The proposal to increase the heavy vehicle toll multiplier from 3 to 3.5 times higher than light vehicle tolls is particularly troubling and disregards the existing evidence base that demonstrates such measures are unnecessary according to NatRoad CEO Warren Clark.
“The trucking industry has not been listened to. This report is a setback for trucking businesses, which operate on extremely tight margins,” he said.
“The suggested increase in the toll multiplier to 3.5 is unjustified and mocks the essential role of trucking in our economy and our supply chain. Our industry simply cannot absorb these unfair and unnecessary costs, nor can we simply pass them on to customers.” continued Clark.
“In addition, the recommendation to apply a toll to Sydney Harbour crossings for trucks, using the new higher multiplier, further exacerbates the financial burden on truck operators. These moves are in stark contrast to the fairer tolling system the Report claims to call for.”
NatRoad has made the following points in regard to the increase in the toll multiplier:
- The Report overlooks substantial evidence that the current truck toll multiplier is unsupported by data.
- A 1.5 times multiplier is sufficient to recover the cost of heavy vehicle road wear while still generating additional revenue. NatRoad’s recommended 2 times multiplier is more than reasonable and equitable. Ramping it to 3.5 times is simply using the trucking sector as a cash cow.
- Over 90 per cent of trucking operators are small and family businesses with profit margins averaging just 2 per cent. Increasing the multiplier to 3.5 times places an undue burden on these operators, who already struggle with limited ability to pay and pass on costs. In a time when the sector is struggling to find drivers, this action could put the supply chain into crisis.
- The 2022 NSW Parliamentary Inquiry into road tolling found it already inequitable to charge trucks three times as much as cars, especially where trucks are compelled to use toll roads.
NatRoad does welcome some aspects of the report, such as the establishment of an independent regulator and the move towards a unified and simplified tolling system, including:
Peak/Off-Peak Tolls: NatRoad has advocated for a trial of peak/off-peak tolls for heavy vehicles to encourage more efficient use of toll roads. Lower tolls during off-peak hours would align with principles of efficiency and fairness, reducing congestion, emissions, and social impacts. The recommendation to trial this is welcome.
Consultation and Transparency: While the report calls for extensive stakeholder consultation, it must include real actions against NatRoad’s recommendations for variable lower truck toll rates, discounts for multiple truck journeys, and exemptions for zero-emission heavy vehicles.
“We are calling on NSW Government to reject the proposed toll multiplier increase and to engage in meaningful dialogue with the trucking industry to develop a more realistic tolling system,” Clark said.
“The trucking industry stands ready to assist in implementing necessary reforms, but that must include workable, fair and sustainable solutions for all road users.”
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