Advocacy

Our Stand on the big issues

National Road Carriers’ members are committed to providing an efficient, safe and high-quality road-freight service. To achieve this, trucking operators need a safe, efficient and sustainable operating environment that enables the efficient and safe movement of goods.

Below is an overview of National Road Carriers’ positions on the current challenges and opportunities.

Infrastructure

THE CHALLENGE

For decades, investment in New Zealand’s local and national roading infrastructure has lagged well behind what’s needed for a safe, productive and resilient roading network. This includes both the construction of new roads and the maintenance of existing ones. OECD data shows New Zealand’s transport investment infrastructure has sat behind UK, US, Canada and Australia on a per capita basis since 2007, when NZ data was included.

The lack of investment is increasingly visible across New Zealand’s roading network – from routes that are not resilient to weather events, to damaging potholes, to roads and lanes that are too narrow and therefore unsafe. This impacts truck drivers and operators, the broader transport industry and the country’s productivity. Substandard roading infrastructure also creates an unsafe and unpleasant environment for everyone using our roads. In many situations, investments have been made but – without reliable evidence underpinning decisions or consistency of funding – outcomes have been ineffective.

Roading investments and funding initiatives are easy for local and central governments to delay in the short-term, often for other legitimate priorities, without obvious consequences. But before long, the impact of either no progress or stop-start progress is noticeable and it becomes more and more expensive to catch up. This approach is unsustainable and effectively pushes the cost of maintaining and improving today’s roads on to the next generation of New Zealanders.

The absence of a reliable infrastructure plan (and the funding to implement), free from conflict with short-term government priorities or other interests, also makes it difficult for the trucking industry and other infrastructure businesses to plan and invest for the long term.

What is National Road Carriers’ position?
National Road Carriers advocates for:

1. Development of a 50-year roading infrastructure plan that delivers a safe, productive and resilient roading network and helps New Zealanders and businesses connect to each other, and to the world.

The plan needs to contain:

The roading infrastructure required to meet New Zealand’s broader long-term economic, social and climate objectives.
The pathway required to achieve the plan including understanding what engineering and construction methods and labour and technology needs are anticipated over time, as well as attracting investment where necessary.
A funding model that considers the holistic value of quality roading infrastructure to New Zealand including the economic and social return on investment. National Road Carriers favours an investment-based funding model rather than the current consumption-based funding system.
What is necessary to ensure existing asset maintenance and renewal including reliable and sustainable funding and long-term supplier contracts for efficiency.
Clear measurement of progress against goals. This should also include the compound benefits of quality roads and associated transport infrastructure including social and economic benefits.

2. Evidence and expertise must underpin the plan

The roading infrastructure plan must be based on consultation with industry as well as quantitative inputs including data and other evidence:

Quality long-term solutions should be based on modelling that includes expected demand, availability of skills, technology evolution and climate change.
Planning and ongoing maintenance decisions should draw on the experience of those using the roading network.

3. The plan, including funding, should be overseen independently from the government-of-the-day to ensure the emphasis remains on the long term.

Oversight of the plan and its funding and measurement should be carried out by an autonomous body enabled by legislation.
In providing oversight, the body would have a mandate to ensure the right balance is struck between national and local interests when it comes to the planning, funding and implementation of roading infrastructure.
Funding and measurement should include a focus on the underlying value that roading delivers as a social and economic enabler.

Employment

THE CHALLENGE

The industry has material ongoing worker shortages including drivers. This shortage has existed for several years but has been exacerbated by the lack of supply of drivers from overseas following COVID-19 restrictions, heightened domestic and international competition for workers generally and a driver population currently skewed to an older demographic.

In addition to this being a serious weakness in the overall supply chain, worker shortages leads to pressure on existing drivers as well as unsustainable wage inflation.

Other factors impacting operators’ ability to secure sufficient numbers of drivers include an insufficient pathway to residency for migrant truck drivers (we note a policy is being implemented to support a two-year pathway) and fewer people gaining class 1 driver’s licence, a prerequisite for a class 5 heavy vehicle combination licence.

What is National Road Carriers’ position?

It is important to note that some of the causes of worker shortages are caused by global macro economic issues rather than anything over which the industry or individual operators have any control.

However, there are levers available to both government and industry to increase the attractiveness of the industry to current and potential workers including ease of access. These include longer-term investments (such as reducing shortages by increasing supply through improving supply chain infrastructure) as well as more immediate initiatives such as:

1. Making it as easy as possible to attract quality truck drivers from overseas and domestically

Implement immigration policy changes to provide a clear and simple path to residency for immigrants who are truck drivers.

Improving the Class 1-5 process to encourage young people to obtain licenses.

2. National Road Carriers and its members are committed to being good employers with safe and respectful workplaces.

The industry is committed to continuously improving the industry’s attractiveness. This includes highlighting the industry’s contribution to New Zealand’s future as well as continuing to strengthen the diversity and inclusion of the trucking industry.
The industry recognises the opportunity for creative approaches to alleviating the skills shortage including greater flexibility in how roles are filled (for example, part-time, shorter shifts) to attract a broader range of applicants.

3. Supporting Pathways into the road transport industry

Raising awareness with schools on career pathways into the road transport industry, emphasising all roles and the technological advances in managing freight and logistics.
Assisting the development, awareness and growth of industry training programmes and qualifications.

Environment

THE CHALLENGE

In principle, National Road Carriers supports a low emissions, climate resilient future and the legislated target for net zero greenhouse gas emissions by 2050.

At the current time, important details about what makes up current emissions within the transport sector, and in particular the trucking sector, are limited. When combined with limited knowledge about the timing and viability of future technology, the planning of a successful transition is challenging.

Trucking operators invest in their fleets and equipment for the long term, with trucks purchased today designed to deliver a return on investment for at least 25 years . This means if managed transitions to new, lower emissions technology are unable to take place at a planned and fair pace, it will compromise the trucking industry’s capacity and ability to operate without significant costs for consumers, exporters and the economy. In the worst case, it may impact the viability of operators and the industry and have a negative economic impact.

What is National Road Carriers’ position?

National Road Carriers and its members acknowledge they have an important role to play in reducing transport emissions. National Road Carriers advocates for:

1. A realistic transition that recognises success depends on alternatives that are available, affordable and fit-for-purpose.

The transition must recognise the significant and long-term capital expenditure required by the road transport industry, which is made up largely of small operators. It should also take into account the broader societal benefits brought about by a successful transition.
A successful transition to lower emissions requires an evolution in the entire roading infrastructure ecosystem. This ranges from the quality of the roading network to alternative fuel or charging infrastructure being rolled out nationwide.
National Road Carriers maintains an open mind on the technologies that may emerge to support a transition to lower emissions and which may be the right solution. Solutions may include lowering emissions of the existing fleet or new vehicles or fuels. As a general principle, National Road Carriers does not believe the solution lies in reduced usage or the imposition of consumption-based levies or taxes, which harm the wider economy.

National Road Carriers welcomes any opportunities for New Zealand to be a test environment for new technology by manufacturers

2. Basing the transition and achievement of government targets on a detailed understanding of what currently drives transport emissions.

Understanding the details making up current emissions totals in the transport industry and specifically from trucking – to provide a credible baseline.
Ensuring the plans and measures to reduce emissions are set with reference to this baseline.
Emissions should be measured in a standardised way against the kilometres travelled.
To avoid inhibiting transitions and future states, regulations must be adjusted to allow flexibility for new technologies and approaches.

Supply Chain

THE CHALLENGE

Data collected on how trucks are using roading infrastructure lacks depth. This means key decisions on the current and future roading network are not sufficiently based on evidence and risk being incorrect or introducing risks. In addition, without a baseline, the impact of investment is difficult to accurately measure.

The absence of data collection also limits the ability to account for carbon and meaningfully measure progress against national emissions targets.

What is National Road Carriers’ position?

1. New Zealand’s current supply chain needs to be re-imagined with reference to future needs

Participants in the supply chain, including government agencies, need an appropriate understanding of the strengths and weaknesses of the system we are operating in now.
A comprehensive long-term roading infrastructure plan will also be a key input into the supply chain needed for the future.
It is important that New Zealand capitalises on the lessons learned during COVID-19 about the importance and advantages of a resilient, reliable and efficient supply chain.

2. The appropriate collection of data (and other evidence) as a key enabler is vital to all participants’ ability to prioritise, evaluate and plan.

Data, insights and other evidence to inform infrastructure plans as well as maintenance programmes and use of alternate routes by providing richer understanding of the economic and societal value of goods using the road network.
To measure emissions (and reductions) and to support transitions to future fuels; and as an input into the total emissions of a particular consumer product being manufactured and delivered.

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