IHRA: Fuel price increases will force 100 haulage companies to fold

Budget increases in fuel duties and taxes will lead to inflation and put an estimated 100 haulage companies out of business in 2011, the Irish Road Haulage Association has claimed.

“The Government have failed to differentiate between discretionary and non-discretionary users of fuel,” said IRHA president Vincent Caulfield.

“These increases will cripple haulage companies already on the brink of closure.

“Today’s Budget measures have increased the annual cost of keeping just one truck on the road by as much as €3,000 at a time when road hauliers are struggling to survive on incredibly tight operating margins.

“Haulage companies who have been forced to make redundancies and to cut costs to survive have reached the end of the road. They can not absorb cost increases or taxes of this magnitude when business continues to evaporate.

“Businesses requiring freight services should be on notice that licensed freight hauliers will be passing on the increases in operating costs with immediate effect. There is no other alternative,” Mr. Caulfield added.

The Association revealed that more than 200 haulage companies have failed or ceased trading since the introduction of the carbon tax in last year’s Budget, which resulted in a 5c rise in the price of a litre of diesel.

“Our members are seriously concerned by the proposal to double the carbon tax to €30 per tonne by 2014. Licensed freight carriers must be permitted to charge carbon tax on services in the same way as VAT if we are to avoid the further erosion of our competitiveness,” he said.

The Association described the Government’s decision to ignore its pre-Budget submission to scrap road tax and to introduce ‘Pay as You Go’ charges for the entire national road network as a failed opportunity to protect jobs in the industry and to introduce more equitable means of generating tax revenue.