The Victorian Automotive Chamber of Commerce (VACC) has warned the Essential Services Commission (ESC) that the current accident towing fee structure is threatening the industry’s viability.
In a response to the ESC’s draft decision on accident towing, storage and salvage fees, the VACC has outlined its concerns about the proposed fee structure.
The VACC has discussed several factors it says should be considered in determining appropriate fees for accident towing services in metropolitan Melbourne.
“Accident towing operators in Melbourne are experiencing significant cost increases across various aspects of their business,” VACC CEO Peter Jones says.
“Our submission presents data showing that since 2021, labour costs in the transport industry have grown by 26 per cent, industrial land rents have risen by 64 per cent, and insurance premiums have grown by 22 per cent.”
The VACC’s submission highlights the growing challenges operators face due to Melbourne’s increasing road congestion, which extends the time required to reach accident sites and return to depots. This congestion directly impacts operating costs and efficiency while requiring operators to maintain 24/7 readiness regardless of traffic conditions.
“The evolution of vehicle technology is creating both opportunities and challenges for the automotive industry, including accident towing operators,” Jones says.
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“Our members are investing in training and equipment to safely manage modern vehicles, including those with high-voltage battery systems.”
The VACC has proposed alternatives to the ESC’s current benchmarking methodology, including a cost-of-service approach that would directly consider the actual costs faced by Melbourne operators. As an alternative, the submission suggests considering the recently implemented fee structure used in Western Australia for the Perth and Peel region.
“We believe that a fee structure that appropriately reflects the fixed operational costs of providing accident towing services would support the sustainability of this essential industry,” Jones says.
Jones says the VACC looks forward to continued engagement with the ESC to develop a regulatory framework that ensures the ongoing provision of safe, efficient and timely accident towing services for Victorian road users.
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