Campaigns
Tax Forum October 2011 - TWU Road Pricing Position
The TWU further notes the significant array of government charges that already apply to heavy vehicle use, including registration fees and fuel surcharges.
An MDL system would require massive investment by the trucking sector in the relevant technologies and monitoring systems. It is also broader in scope than previous pricing mechanisms in that it would potentially apply to all road use, rather than distance-based charging on major freeways, motorways and arterial roads.
Should an MDA system be pursued, the following pre-conditions must be agreed:
- No individual heavy vehicle driver should be disadvantaged by road pricing reforms; the principle of full cost recovery should be observed
- existing state, federal (and where applicable, local) government charges should be rationalised
- a full and transparent analysis must be conducted of the cost to heavy vehicle users of conforming to an MDL system
- an MDL system should only be considered on a national basis
- funds generated under an MDL system must be quarantined for road improvement and related programs, including training in programs to enhance the environmental performance of heavy vehicles
- MDL implementation costs in terms of technology should be met by MDL-generated funds over time and in the first instance, by a government allocation
The TWU is generally concerned that moves to embrace new road pricing mechanisms will result in owner-drivers and employees of transport/logistics companies bearing implementation, operating and monitoring costs. The heavy vehicle sector has a long-standing history of ‘absorbing’ new costs, whether direct or indirect, by curbing or reducing driver pay and entitlements.
It is for this reason that the TWU advocates the adoption of a system of Safe Rates of payment for heavy vehicle operators. It is the only reliable means of ensuring that strategically weak individuals within complex supply chains are not economically punished by the adoption of measures that increase operating costs.
Tony Sheldon
National Secretary
Transport Workers Union of Australia
October 4, 2011