April 13, 2016
The Coalition Government will move to immediately protect truck owner drivers in Gippsland from being driven out of business by abolishing the Road Safety Remuneration System (RSRS).
Federal Member for Gippsland Darren Chester said the government would introduce legislation when Parliament returns next week to abolish the previous Gillard Government’s Road Safety Remuneration Tribunal (RSRT).
The RSRT has set a controversial minimum rates order that industry groups, farmers and truck drivers say will destroy jobs and livelihoods in regional Australia.
If there is not sufficient Crossbench Senate support to abolish the RSRS next week, the government will move to put a stay on the RSRT order until January, 2017.
The Transport Workers Union, Labor and Greens have so far moved to block its abolition.
Mr Chester said the government had listened to the feedback from owner drivers who wanted the RSRS abolished immediately.
“It has become clear that if we don’t act quickly, there won’t be an owner-driver trucking industry to save once Labor and the Transport Workers Union (TWU) are finished with it,” Mr Chester said.
“Since our announcement to introduce legislation to put a stay on the RSRT order until January 2017, truck drivers have made it clear they want a vote on the abolition of the RSRS brought forward to next week.
“We will now test the numbers in the Parliament to see where all parties and cross benchers stand on this issue.”
Mr Chester said he spoke against the introduction of the RSRT when legislation was introduced by the previous Labor Government in 2012.
“I was on the committee which inquired into the RSRT while in Opposition and I spoke against the legislation, then voted against it. Labor, Greens and the cross benchers made it law,” Mr Chester said.
“The government already has a range of heavy vehicle safety measures being implemented. It is clear the RSRS is not about promoting safety, but driving up union membership.
“The Coalition Government will also redirect funding saved by abolishing the RSRT into the National Heavy Vehicle Regulator (NHVR), to promote additional truck safety initatives.”
Mr Chester said he had been contacted directly by owner-drivers from across Australia who want the RSRS abolished.
The RSRT issued a minimum rates order only targeting owner-drivers, who said the new system would make them uncompetitive and leave them without work.
“Since February, truck drivers have been on an emotional roller coaster as they waited to hear what the RSRT’s decision would mean for them. The Federal Court upheld the RSRO (rates order) only last week – drivers have not been given enough time to adjust their business arrangements,” Mr Chester said.
“Less than a fortnight ago, truck drivers went to bed on Friday night with a job, and woke up Monday morning facing the prospect of unemployment and bankruptcy.
“These owner-drivers own homes, they have mortgages on their trucks, spend money in regional towns around Australia, and keep our nation moving. These mum-and-dad businesses are common throughout Gippsland and it is essential their livelihoods are protected.”
When PricewaterhouseCoopers’ (PwC) looked at what the RSRT has done with its minimum rates order, it found the tribunal will cost the economy $2.3 billion.
Third-Party endorsements:
National Farmers Federation President Brett Finlay:
“The notion that substantially increasing transport costs and red tape will somehow improve road safety just doesn’t stack up. We already have a National Heavy Vehicle Regulator, with responsibility for chain of responsibility legislation, fatigue management and safety accreditation. We also have some of the strongest work health and safety laws in the world.”
NatRoad Chief Executive Officer Warren Clark:
“I’m pleased to see the Prime Minister listening to concerns raised not only by NatRoad’s members but also in two reviews of the Tribunal,” Mr Clark said.
Resource industry employer Australian Mines and Minerals Association Executive Director, policy and public affairs Scott Barklamb
“Australia’s resource employers welcome today’s announcement that the Turnbull Government will, if re-elected, abolish the RSRT. This tribunal was setup only to pander to former Prime Minister Julia Gillard’s mates in the Transport Workers Union (TWU),” said Mr Barklamb.
Australian Trucking Association Chair, Noelene Watson
“These drivers have nowhere to go. They’re suffering, their families are suffering, and the pressure is immense. This order – which was meant to improve safety – is instead directly causing immense hardship for tens of thousands of owner-drivers across Australia,” Ms Watson said.
Australian Logistics Council Managing Director, Michael Kilgariff
“The confusion, costs and inefficiencies resulting from this order underscore why the Parliament needs to act to repeal the tribunal, which a number of independent reports have highlighted is not the right approach to dealing with this issue,” he said.
Australian Industry Group Chief Executive, Innes Willox
“The tribunal’s order will increase costs for industry and consumers. The order also threatens jobs and work for contractor drivers, and harm to regional and rural areas which are heavily reliant on road transport.