Hauliers leaving industry as Government support dries up

The Irish Road Haulage Association has met with representatives from the Department of Transport this week but the discussions failed to secure any more supports for the industry. File picture: Sam Boal / RollingNews.ie

Small haulage companies have begun to leave the industry as they cannot afford to keep operating in the face of the highest ever fuel prices they have experienced and a State support has been taken off them.

According to the AA, petrol costs now stand at 213.2 cent per litre and diesel costs at 205c.

Industry costs have increased by more than 30% since the beginning of the year and continue to put pressure on companies struggling to break even, according to Eugene Drennan, president of the Irish Road Haulage Association (IRHA).

The Government has spent more than €15m under an emergency support scheme for hauliers since March, which was a “temporary and targeted measure for the haulage sector in response to the sudden increase in fuel prices arising from the conflict in Ukraine”.

There were 2,923 licensed haulage operators in receipt of the scheme, which provided €100 per week per truck for eight weeks. 

However, there are serious concerns for the viability of businesses as the scheme has now been closed. The IRHA is seeking further supports “immediately”.

The Government has reduced excise duty on fuels by 20 cent on petrol and 15 cent on diesel until budget day in October, but industry figures say this is not enough. 

Mr Drennan argued the 2c paid to the National Oil Reserves Agency (Nora) per litre should also be removed.

The IRHA has met with representatives from the Department of Transport this week but the discussions failed to secure any more supports for the industry.

A spokesperson for the Department of Transport said: “Since early March, with the benefit of the excise reduction, eight weeks support under the Licensed Haulage Support Scheme and the ongoing diesel rebate relief, haulage businesses will have had the opportunity to revise and renegotiate contracts with their clients in order to reflect increased prices, as is an unfortunate reality in all sectors across the economy.

The causes of current fuel price pressures are not within the Government’s control. The Government has limited resources and has responded to help to ease the impact of these price increases, but it is not possible to cushion citizens and businesses from the entire impact.” 

Haulage companies are reducing the size of their fleets every day, said Brendan Ryan, who runs haulage company Martin Ryan and Sons with his two brothers.

The Limerick company employs 130 staff and owns 85 trucks, but the brothers are considering reducing the size of its fleet due to untenable costs.

Mr Ryan said tax on fuel should be further reduced to help the industry and give hauliers the financial ability to move towards more environmentally friendly technology, as high taxation is limiting their ability to make a “just transition”.