DP World, Safe Rates, Productivity and the Chain of Responsibility

Rearing their ugly heads in this week’s headlines on Diesel News are DP World, Safe Rates, Productivity and the Chain of Responsibility.

According financial analysis by the Road Freight NSW, DP World’s proposed new port levy will see road carriers losing up to $150,000 per year.

General Manager Simon O’Hara reckons concerned RFNSW members were warning that the $21.16 per container levy slugged on trucks entering the Port Botany terminal by DP World would result in significant financial losses for operators already under pressure due to a change in rates in the General Carriers Contract Determination (GCCD).

“Truckies doing it tough will be hit hard by this unfair tax,” said O’Hara. “They’re now bracing themselves for losses of between $50,000 to $150,000 per year. This levy will severely compromise carriers’ cash flow, given that DP World demands payments within seven days, yet they’re waiting for up to 30 days, or longer, for their customers to pay them.

“How can they be expected to run a business like that? RFNSW is especially concerned about the impact on smaller, family-run trucking companies trying to make ends meet.”

DP World, Safe Rates, Productivity and the Chain of Responsibility

The report into Regulation of Agriculture recently released by the Productivity Commission has called for reduced red tape for farming and transport businesses, recognising they are subject to a complex regulatory framework. The Productivity Commission also stamps out the myth of ‘safe rates’ reinforcing their negative impact on the transport industry, according to NatRoad.

“The Productivity Commission has completely justified the Federal Government’s action in abolishing the Road Safety Remuneration Tribunal (RSRT) just over a year ago,” said Warren Clark, CEO of NatRoad. “The report found that the road safety remuneration system (including the RSRT) imposed costs on businesses, including farm businesses, without commensurate safety benefits and its abolition has reduced this burden.

“The RSRT caused chaos and confusion to owner-drivers and others in the road transport industry. The idea that mandating rates of pay automatically improves safety on the road is a myth. It’s time to move on and let the forty thousand trucking businesses around Australia run their own race, just like they’ve done for decades before. There is a consensus in the transport industry that what occurred with the RSRT should never be repeated. We welcome the federal Government’s commitment to never re-establishing the RSRT.”

The Productivity Commission found that there were several flaws in the process of establishing the Road Safety Remuneration system, including the lack of evidence ‘connecting the regulation of remuneration with improvements in safety outcomes’.

DP World, Safe Rates, Productivity and the Chain of Responsibility

Speaking at the recent NatRoad regional trucking summit in Toowoomba Justin Fleming, General Manager TruckSafe reminded the trucking industry it needs to get prepared for the introduction of change Chain of Responsibility rules next year.

“It is crucial that you are aware of your obligations and your requirements under due diligence, otherwise you and your business could suffer under the COR changes”, said Fleming. “These changes in COR include areas that we have never experienced in COR laws, such as their extension to maintenance. As a basic starting point, businesses need to undertake daily checks of their trucks.

“These daily checks are very important, and everyone needs to make sure that whoever is doing those daily checks any faults are performing them correctly and recording them accurately. You must have processes to verify that these are actually being done. There must be a system to record any changes to your maintenance system, and there must be a process to change your system as needed.”

Author: Tim Giles

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