Trucking urged to focus on cost recovery under ETS

TWU says industry needs focus on making sure it recovers the cost of the Federal Government’s proposed emissions trading scheme

July 19, 2013

The trucking industry needs to focus on ensuring it recovers the cost of an emissions trading scheme when it is introduced, the Transport Workers Union (TWU) says.

The Federal Government announced earlier this week it planned to move to a market-based system on July 1 next year as opposed to continuing with the carbon tax.

Australia’s emissions trading scheme will be linked to the European price, which is currently $6 per tonne of carbon, and is due to apply to trucking operators through a reduction in the fuel tax credit.

"Now that the issue of the carbon tax has been put to bed, we should be focused on moving forward on the big issues - full cost recovery for drivers, and tackling the big squeeze on drivers and transport operators as a result of the economic power of big retailers like Coles in the industry," TWU National Secretary Tony Sheldon says.

"Truck drivers need and deserve safe, sustainable rates of pay that allow for full cost recovery on fuel, capital, labour and investment from major clients."

The Australian Trucking Association (ATA) estimates an emissions trading scheme will increase fuel prices by 1.6 cents per litre.

A carbon tax of $25.40 per tonne was originally due to apply from July 1, 2014 and would have led to an increase in fuel prices of 6.8 cents per litre. The tax was introduced on July 1 last year but trucking operators were given a two-year reprieve.

"I want to congratulate the Prime Minister [Kevin Rudd] for bringing forward the switch to the emissions trading scheme, which keeps us on track to reducing our carbon emissions and ensures Australia moves in step with the rest of the developed world," Sheldon says.

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