Government will support hauliers, says Naughton

Hildegarde Naughton said the Government does not have a “complete crystal ball” on the future of fuel prices and supply. Picture: Sam Boal / RollingNews.ie

The Government will ensure the survival of the haulage industry with further supports if necessary for its survival, Minister of State for Transport and Logistics Hildegarde Naughton has said.

Amid sky-high fuel costs and growing concerns among hauliers about the viability of their businesses, the Minister told an industry conference that the upcoming budget will focus on minimising costs as much as possible for the industry.

The haulage industry has been struggling in recent months as fuel prices in Ireland have risen by more than 60% in the last 18 months, leading to significant losses for many companies.

Average fuel prices in Ireland last month were 186.9 cent per litre of petrol and 189.8 cent for diesel, down from their peak of 213.2c and 205c in June, respectively.

Speaking to hauliers over the weekend, Ms Naughton said the Government does not have a “complete crystal ball” on the future of fuel prices and supply, but it is “planning for every contingency” and is “optimistic” regarding potential fuel shortages in the coming winter.

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In its recent budget proposal for the Government the Irish Road Haulage Association (IRHA) said, “considerable resistance to any attempts by members to recover increased costs through higher charges to customers”.

Among the IRHA’s proposals, the group asked for increased supports to offset the impact of Brexit, maintain the reductions in excise duty on fuel, funding for AdBlue which reduces emissions in newer diesel engines, removing the 2 cent National Oil Reserves Agency charge for hauliers and rebate the costs to them backdated to January 1 2020, financial supports in upgrading fleets to greener technology and the abolition of toll charged for green vehicles.

“I can’t pre-empt the budget, but what we’re saying is we have to make sure this sector survives,” she said.

They won’t get everything they want [in the budget], and no sector will and we won’t be able to cushion everyone 100%."

Speaking at the IRHA national conference on Saturday in Killarney, Co Kerry, the Minister said she is “acutely conscious of the ongoing challenges arising from the war in Ukraine and the pressure this is placing on the sector.” 

She said “the short to medium term oil supply outlook has stabilised, and no oil supply difficulties are expected in the coming months. But it is always prudent to plan.” 

She said decarbonisation and addressing the driver shortage are among the “most pressing long-term challenges facing the sector”.

Earlier this year, the Government paid more than €15m to about 3,000 haulage companies, and since March it reduced the excise duty by 20 cent per litre of petrol and 15 cent per litre of diesel.

In a bid to address driver shortages, the Minister said the Road Safety Authority (RSA) will soon make a recommendation to her regarding truck licence exchange agreements with Argentina and North Macedonia. 

The RSA is also in the process of develop training for Ukrainians residing in Ireland under the EU temporary protection directive.