1 00:00:00,400 --> 00:00:02,400 Speaker 1: We have been taking a closer look at these diesel 2 00:00:02,400 --> 00:00:05,320 Speaker 1: and unleaded prices overnight at the terminal gate. We know 3 00:00:05,400 --> 00:00:09,080 Speaker 1: that we've seen a massive jump just overnight. So as 4 00:00:09,119 --> 00:00:11,640 Speaker 1: we see these fuel prices that are set to rise 5 00:00:11,920 --> 00:00:14,200 Speaker 1: up to twenty five cents per liter. Now that that 6 00:00:14,240 --> 00:00:17,360 Speaker 1: cut to the fuel excises ended, it was indeed a 7 00:00:17,400 --> 00:00:20,880 Speaker 1: temporary measure introduced under the former coalition government and it 8 00:00:20,920 --> 00:00:23,640 Speaker 1: was aimed well designed. I guess you'd say, to provide 9 00:00:23,680 --> 00:00:27,440 Speaker 1: some cost of living relief. Now one of the major industries, though, 10 00:00:27,440 --> 00:00:30,040 Speaker 1: that is set to feel the pinch. The most I 11 00:00:30,120 --> 00:00:32,519 Speaker 1: think you'd have to say is the transport sector. And 12 00:00:32,600 --> 00:00:34,320 Speaker 1: joining me on the line to tell us a little 13 00:00:34,320 --> 00:00:39,000 Speaker 1: bit more is the Empty Road Transport Association's Louise Belato. 14 00:00:39,080 --> 00:00:40,680 Speaker 1: Good morning to you, Louise. 15 00:00:41,680 --> 00:00:43,680 Speaker 2: Good morning Katie, Louise. 16 00:00:43,800 --> 00:00:46,680 Speaker 1: What is the industry preparing for at this point with 17 00:00:46,760 --> 00:00:47,840 Speaker 1: that excise ending? 18 00:00:49,600 --> 00:00:53,720 Speaker 2: Well, the excise, the fuel exercise did nothing for the 19 00:00:53,800 --> 00:00:57,000 Speaker 2: road transport industry, as you may have been aware. Yeah, 20 00:00:57,120 --> 00:01:01,560 Speaker 2: because we lost that a teen point two percent. We're 21 00:01:01,560 --> 00:01:05,280 Speaker 2: actually having reinstated eighteen point six percent dual tax credit, 22 00:01:05,680 --> 00:01:10,600 Speaker 2: but the price difference for diesel was up around thirty 23 00:01:10,640 --> 00:01:14,759 Speaker 2: cents a liter for the duration. So we were seeking 24 00:01:14,920 --> 00:01:19,160 Speaker 2: answers to why there was such a difference between diesel 25 00:01:19,280 --> 00:01:23,839 Speaker 2: and unleaded whilst the fuel exercise was there and got 26 00:01:23,840 --> 00:01:27,520 Speaker 2: no good answers except that there was a great demand 27 00:01:27,800 --> 00:01:33,600 Speaker 2: for diesel from mining and agriculture and shipping and as 28 00:01:33,600 --> 00:01:36,679 Speaker 2: well as the road transport industry, which told us that 29 00:01:36,800 --> 00:01:41,560 Speaker 2: the you know, the fuel companies were making huge amounts 30 00:01:41,560 --> 00:01:45,880 Speaker 2: of money there. So we had no fuel tax credits 31 00:01:45,959 --> 00:01:50,280 Speaker 2: and we had very high diesel prices. Now we're going 32 00:01:50,360 --> 00:01:54,120 Speaker 2: to have even higher diesel prices, but we will get 33 00:01:54,320 --> 00:01:57,680 Speaker 2: the eighteen point eight cents a liter duel tax credits 34 00:01:57,720 --> 00:02:02,440 Speaker 2: for on road, okay, and so on the ways talk 35 00:02:02,480 --> 00:02:02,760 Speaker 2: us through. 36 00:02:02,840 --> 00:02:05,040 Speaker 1: I mean, I guess for you know, for a regular 37 00:02:05,080 --> 00:02:07,640 Speaker 1: person listening this morning, they'll be wondering, how much does 38 00:02:07,640 --> 00:02:12,240 Speaker 1: it even cost to fill up a truck? You know, 39 00:02:12,560 --> 00:02:14,520 Speaker 1: I'm imagining quite bloody expensive. 40 00:02:16,240 --> 00:02:20,720 Speaker 2: Well, yeah, I mean, these days trucks usually have smaller 41 00:02:20,880 --> 00:02:24,760 Speaker 2: tanks and fuel up more regularly, but that can be 42 00:02:24,800 --> 00:02:28,080 Speaker 2: a bit hazardous if they're having to fuel up in 43 00:02:28,960 --> 00:02:33,640 Speaker 2: remote locations. But they've put about twelve hundred to fourteen 44 00:02:33,680 --> 00:02:37,119 Speaker 2: hundred liters of duel on. So if you're saying it's 45 00:02:37,440 --> 00:02:42,040 Speaker 2: two dollars two dollars, yeah, yeah, so that's three thousand 46 00:02:42,040 --> 00:02:44,840 Speaker 2: dollars to fuel up a truck. 47 00:02:45,400 --> 00:02:50,679 Speaker 1: That is massive. Yeah, it's a massive amount. So obviously 48 00:02:50,720 --> 00:02:53,000 Speaker 1: the fuel ex size for you guys isn't such a 49 00:02:53,080 --> 00:02:56,519 Speaker 1: huge concern, but you obviously spoke about, you know, the 50 00:02:56,680 --> 00:03:01,880 Speaker 1: other measures for our road train o sport industry at 51 00:03:01,919 --> 00:03:05,200 Speaker 1: this point in time, like how big an impact is 52 00:03:05,240 --> 00:03:07,760 Speaker 1: this having when it comes to transporting goods in and 53 00:03:07,760 --> 00:03:09,880 Speaker 1: out of the territory and around Australia. 54 00:03:11,200 --> 00:03:16,520 Speaker 2: Oh, Katie, it's been massively problematic because there was some 55 00:03:16,639 --> 00:03:20,400 Speaker 2: real concerns about the financial stress of our road transport 56 00:03:20,440 --> 00:03:23,880 Speaker 2: industry whilst that duel tax credit wasn't there because as 57 00:03:23,880 --> 00:03:26,839 Speaker 2: I said, the fuel exercise did nothing for the road 58 00:03:26,880 --> 00:03:30,840 Speaker 2: transport industry. It had that fuel tax credit removed and 59 00:03:30,880 --> 00:03:34,120 Speaker 2: we still saw the very high diesel prices. So there 60 00:03:34,160 --> 00:03:39,760 Speaker 2: was a significant number of transport operators who were and 61 00:03:39,920 --> 00:03:44,800 Speaker 2: are you very compromised and potentially it's gone broke. We've 62 00:03:44,840 --> 00:03:47,680 Speaker 2: had other companies who were able to put those fuel 63 00:03:47,760 --> 00:03:51,720 Speaker 2: levees in place and who were traveling okay because there's 64 00:03:51,760 --> 00:03:56,880 Speaker 2: so much work on, but you know, when there's problems 65 00:03:56,920 --> 00:04:00,560 Speaker 2: with workforce and not being able to get sufficient divers, 66 00:04:00,680 --> 00:04:04,600 Speaker 2: that proved very problematic. And there's been a number of 67 00:04:04,880 --> 00:04:07,960 Speaker 2: trucking operators who've just sold up all their gear. They 68 00:04:07,960 --> 00:04:11,640 Speaker 2: haven't even tried to sell their businesses. They've just sold 69 00:04:11,760 --> 00:04:15,400 Speaker 2: up and walked away, walked out of the business. Well, 70 00:04:15,440 --> 00:04:21,960 Speaker 2: because the it's been so lot, there's long waiting periods 71 00:04:22,000 --> 00:04:26,160 Speaker 2: to get new trailers and prime movers, and so there 72 00:04:26,200 --> 00:04:30,400 Speaker 2: is a demand for equipment, and they've got better prices 73 00:04:30,920 --> 00:04:35,320 Speaker 2: for secondhand equipment, and it was it was cheaper and 74 00:04:35,360 --> 00:04:38,000 Speaker 2: easier for them to just pack up and walk away 75 00:04:38,080 --> 00:04:39,680 Speaker 2: and sell off their gear. Good. 76 00:04:41,480 --> 00:04:44,159 Speaker 1: Has that kind of thing happened here in the territory. 77 00:04:44,880 --> 00:04:47,600 Speaker 2: Yeah, we've had We've had some smaller operators who have 78 00:04:47,680 --> 00:04:50,880 Speaker 2: definitely sold up a lot of their gear and who 79 00:04:50,920 --> 00:04:54,520 Speaker 2: are intending to leave the industry. Mean a lot of 80 00:04:54,560 --> 00:05:00,919 Speaker 2: those people were, you know, thinking about it before this year, 81 00:05:01,400 --> 00:05:03,880 Speaker 2: but it's just become more attractive and it's been too 82 00:05:03,960 --> 00:05:08,480 Speaker 2: expensive to try and operate because if you everyone wants 83 00:05:08,480 --> 00:05:11,520 Speaker 2: a backloading rate. And we've had this conversation before. It's 84 00:05:12,360 --> 00:05:16,480 Speaker 2: rude because the cost of fuel is exactly the same 85 00:05:16,480 --> 00:05:19,760 Speaker 2: whether you're traveling into Darwin or you're traveling out of Darwin, 86 00:05:20,120 --> 00:05:25,479 Speaker 2: and a fully loaded road train burns a leter of 87 00:05:25,560 --> 00:05:32,200 Speaker 2: fuel for every point eighty seven kilometers regardless. So it's 88 00:05:32,279 --> 00:05:39,479 Speaker 2: a really compromising position that the industry faces when everyone 89 00:05:39,520 --> 00:05:43,840 Speaker 2: wants cheaper freight costs and the transport cost is the 90 00:05:43,839 --> 00:05:48,320 Speaker 2: transport costs and fuel and tires, et cetera all impose 91 00:05:48,760 --> 00:05:51,200 Speaker 2: huge stresses then on the business. 92 00:05:51,960 --> 00:05:54,240 Speaker 1: So the ways when you talk about you know, goods 93 00:05:54,240 --> 00:05:56,680 Speaker 1: and services, what do you think that we can sort 94 00:05:56,680 --> 00:05:59,360 Speaker 1: of expect over you know, over the coming months, and 95 00:05:59,680 --> 00:06:04,360 Speaker 1: and what can we expect from the transport industry. 96 00:06:05,080 --> 00:06:10,200 Speaker 2: I think we can continue to see that those bigger companies, 97 00:06:10,360 --> 00:06:14,160 Speaker 2: you know, the top end of town will be increasing 98 00:06:14,200 --> 00:06:18,800 Speaker 2: their freight prices. That's just given as the you know, 99 00:06:18,880 --> 00:06:23,880 Speaker 2: anyone who's borrowing money for their equipment will have to 100 00:06:24,640 --> 00:06:27,719 Speaker 2: cover those costs, which are you know, higher, Like everyone 101 00:06:27,720 --> 00:06:30,800 Speaker 2: has higher mortgage costs, it's the same when you're borrowing 102 00:06:30,839 --> 00:06:35,280 Speaker 2: money for you know, plant and equipment. And then, as 103 00:06:35,279 --> 00:06:40,520 Speaker 2: I said, we will see higher fuel prices. You've just 104 00:06:40,560 --> 00:06:43,800 Speaker 2: been talking about it. The eighteen point eight cents elater 105 00:06:43,960 --> 00:06:50,839 Speaker 2: fuel tax rebate doesn't cover it. Yeah, yeah, so brace 106 00:06:50,920 --> 00:06:56,719 Speaker 2: yourselves everyone for higher freight costs. Unfortunately, it is tough, 107 00:06:56,760 --> 00:06:57,080 Speaker 2: isn't it. 108 00:06:57,080 --> 00:06:59,520 Speaker 1: You know, like it's sort of the cost of living 109 00:06:59,560 --> 00:07:02,800 Speaker 1: for every body is on the rise. And and you 110 00:07:02,839 --> 00:07:07,120 Speaker 1: know it's for our truckies and for those obviously transporting goods. 111 00:07:07,600 --> 00:07:10,880 Speaker 1: You can understand if they're paying much higher petrol prices 112 00:07:10,960 --> 00:07:14,880 Speaker 1: or diesel prices, then it is understandable that obviously those 113 00:07:14,880 --> 00:07:17,000 Speaker 1: freight costs are going up. But it just, you know, 114 00:07:17,000 --> 00:07:19,840 Speaker 1: it just means that everybody is sort of feeling the impacts. 115 00:07:19,840 --> 00:07:21,320 Speaker 1: I think you'd have to say when it comes to 116 00:07:21,360 --> 00:07:25,600 Speaker 1: the cost of living and those costs rising, Katie. 117 00:07:25,280 --> 00:07:30,400 Speaker 2: It's scary. And transport has always been a marginal industry. 118 00:07:30,840 --> 00:07:35,320 Speaker 2: The profit margins for most of our transport operators, you know, 119 00:07:36,120 --> 00:07:38,760 Speaker 2: you're lucky if it's five percent. You know, there are 120 00:07:38,760 --> 00:07:44,480 Speaker 2: other industries, so they've got very significant percentage profits. So 121 00:07:44,520 --> 00:07:47,640 Speaker 2: they've got they've got more buffer you know, in the 122 00:07:47,760 --> 00:07:52,120 Speaker 2: in their their their business models, whereas transport has always 123 00:07:52,120 --> 00:07:54,480 Speaker 2: been the meat and the sandwich, and as they describe 124 00:07:54,520 --> 00:07:58,720 Speaker 2: as a price taker. Any little change and you know, 125 00:07:58,760 --> 00:08:00,960 Speaker 2: we've seen it across the board, not just with diesel, 126 00:08:01,040 --> 00:08:06,440 Speaker 2: but every oil and lubricants and filters and as I said, tires, 127 00:08:06,800 --> 00:08:11,040 Speaker 2: So it's every aspect of the transport operation which is 128 00:08:11,080 --> 00:08:16,640 Speaker 2: costing more money to actually do business. And yeah, but 129 00:08:16,760 --> 00:08:20,000 Speaker 2: there doesn't look like there's any relief on the horizon 130 00:08:20,200 --> 00:08:23,760 Speaker 2: at all. And you know, we've got the wet season, 131 00:08:23,840 --> 00:08:29,240 Speaker 2: which is a standardly a slower period for the industry 132 00:08:29,280 --> 00:08:34,000 Speaker 2: and where there's downturns et cetera. So we will potentially 133 00:08:34,040 --> 00:08:38,440 Speaker 2: see more of our Northern Territory road transport operators doing 134 00:08:38,480 --> 00:08:39,520 Speaker 2: it very very tough. 135 00:08:39,880 --> 00:08:43,120 Speaker 1: Yeah wow, Now, I mean it's going to be hard 136 00:08:43,160 --> 00:08:44,839 Speaker 1: and it's certainly going to be hard for them running 137 00:08:44,880 --> 00:08:49,240 Speaker 1: their Businesses Louise. Earlier this year, obviously we've spoken quite 138 00:08:49,280 --> 00:08:52,360 Speaker 1: a bit about the diesel addative AD Blue was quite 139 00:08:52,400 --> 00:08:55,320 Speaker 1: a topical issue with it running in short supply. What's 140 00:08:55,320 --> 00:08:59,160 Speaker 1: the latest on that situation. Well, the. 141 00:09:00,679 --> 00:09:09,280 Speaker 2: Federal government has again given moneies to manufacturers to manufacturer 142 00:09:09,280 --> 00:09:14,640 Speaker 2: at Blue in Australia, so we're given assurances that the 143 00:09:14,679 --> 00:09:20,520 Speaker 2: supply shouldn't be a problem ongoing when the Brisbane plant 144 00:09:20,840 --> 00:09:23,440 Speaker 2: closes at the end of the year, because there are 145 00:09:23,440 --> 00:09:28,480 Speaker 2: other manufacturers who are manufacturing AD blue. But the cost 146 00:09:28,520 --> 00:09:31,280 Speaker 2: of it, which is you know today in Darwin is 147 00:09:31,280 --> 00:09:35,600 Speaker 2: a dollar ninety five lita for AD blue is still 148 00:09:36,760 --> 00:09:39,440 Speaker 2: you know, last year at this time it was seventy 149 00:09:39,480 --> 00:09:43,040 Speaker 2: six cents a liter, so and you know, when there 150 00:09:43,120 --> 00:09:46,199 Speaker 2: was a huge constraint it went up to three dollars 151 00:09:46,280 --> 00:09:50,560 Speaker 2: a liter in places. But there is a lot more 152 00:09:50,960 --> 00:09:54,640 Speaker 2: new trucks on the road who all must have add blue. 153 00:09:55,120 --> 00:10:01,000 Speaker 2: And it's again another costingpost and case is that these 154 00:10:01,040 --> 00:10:03,520 Speaker 2: things are very hard to absorb, but they have to 155 00:10:03,559 --> 00:10:05,360 Speaker 2: be passed on. Yeah. 156 00:10:05,360 --> 00:10:07,200 Speaker 1: Well, and this is the thing I mean, Louise, just 157 00:10:07,200 --> 00:10:09,520 Speaker 1: based on you know, the discussion that obviously we've been 158 00:10:09,559 --> 00:10:11,920 Speaker 1: having this morning, the talk of the petrol prices, you know, 159 00:10:11,960 --> 00:10:15,040 Speaker 1: the other costs that are associated and the difficulties that 160 00:10:15,160 --> 00:10:17,520 Speaker 1: the transport industry has gone at the moment, and they're 161 00:10:17,559 --> 00:10:21,440 Speaker 1: being very small margins as it is. I mean, is 162 00:10:21,440 --> 00:10:23,960 Speaker 1: there anything that could change in any way that you know, 163 00:10:24,040 --> 00:10:26,920 Speaker 1: that might provide some relief or that you know that 164 00:10:27,080 --> 00:10:30,040 Speaker 1: might see things sort of become a bit more positive 165 00:10:30,080 --> 00:10:30,800 Speaker 1: in this space. 166 00:10:32,760 --> 00:10:37,480 Speaker 2: I think if there is any downturn elsewhere, we might 167 00:10:37,559 --> 00:10:43,840 Speaker 2: see increased workforce, or we might have some of the trucks, 168 00:10:44,160 --> 00:10:47,720 Speaker 2: especially in Western Australia, that have been unable to operate 169 00:10:47,800 --> 00:10:51,520 Speaker 2: because of a lack of the workforce. You know, there 170 00:10:51,600 --> 00:10:55,440 Speaker 2: might be people who are interested in coming into the 171 00:10:55,480 --> 00:11:00,760 Speaker 2: industry that way, which will certainly help the the civil 172 00:11:00,800 --> 00:11:05,239 Speaker 2: works projects and the mining projects. And that's that's definitely 173 00:11:05,400 --> 00:11:08,880 Speaker 2: a good thing because the more from our point of view, 174 00:11:08,920 --> 00:11:13,400 Speaker 2: the more bitumen we've got on road surfaces, the more 175 00:11:13,400 --> 00:11:18,000 Speaker 2: cost effective is the road transport task. As soon as 176 00:11:18,040 --> 00:11:21,840 Speaker 2: we're on unsealed roads, you know, we know that's at 177 00:11:21,920 --> 00:11:24,520 Speaker 2: least three times and sometimes a lot more than that 178 00:11:24,920 --> 00:11:27,600 Speaker 2: to actually operate and to do business, and there's that 179 00:11:27,800 --> 00:11:32,360 Speaker 2: many more delays and prepare and maintenance costs on our 180 00:11:32,440 --> 00:11:36,000 Speaker 2: unsealed road networks. You know, it's it's really is ridiculous. 181 00:11:36,080 --> 00:11:40,320 Speaker 2: It's really uncompetitive trying to actually move freight around the 182 00:11:40,400 --> 00:11:45,280 Speaker 2: territory on our undersealed road network. But the one the 183 00:11:45,320 --> 00:11:51,000 Speaker 2: one positive I can mention is that the Northern Territory 184 00:11:51,040 --> 00:11:55,800 Speaker 2: Government's registration so road transport road registrations are going up 185 00:11:56,600 --> 00:11:59,720 Speaker 2: on the Eastern Seaboard under the Heavy Vehicle National Law. 186 00:11:59,800 --> 00:12:04,960 Speaker 2: Those jurisdictions it's going up two point seventy five percent 187 00:12:05,600 --> 00:12:10,800 Speaker 2: from the first of October. The Northern Territory and Western Australia, 188 00:12:11,040 --> 00:12:15,360 Speaker 2: thankfully as not part of the Heavy Vehicle National Law. 189 00:12:16,400 --> 00:12:19,040 Speaker 2: That rise in the Northern Territory is going to be 190 00:12:19,080 --> 00:12:22,760 Speaker 2: one point five percent. So we've managed to negotiate with 191 00:12:22,800 --> 00:12:27,320 Speaker 2: the Northern Territory government. They understand the pressures that everyone 192 00:12:27,440 --> 00:12:33,320 Speaker 2: is experiencing. So registrations on our heavy vehicles going up 193 00:12:33,360 --> 00:12:36,360 Speaker 2: one point five percent, not two point seventy five percent. 194 00:12:36,559 --> 00:12:40,360 Speaker 1: Well, yeah, that is a small positive luise by the 195 00:12:40,400 --> 00:12:43,520 Speaker 1: sounds of it. Hey, we always appreciate your time. Thanks 196 00:12:43,520 --> 00:12:45,200 Speaker 1: so much for having a chat with us this morning 197 00:12:45,240 --> 00:12:47,160 Speaker 1: and talking through you know, how it works for the 198 00:12:47,200 --> 00:12:49,960 Speaker 1: transport industry when it comes to those petrol prices and 199 00:12:50,040 --> 00:12:51,280 Speaker 1: various other aspects. 200 00:12:52,360 --> 00:12:53,920 Speaker 2: Thank you, Katie, Thank you