Kawakawa shop owner Karam Gill said increased transport costs due to the Brynderwyns closure will affect her business. Photo / Jenny Ling
Northland businesses will have to decide whether to pass extra transport costs associated with the upcoming Brynderwyns closure on to customers or “take them on the chin”.
The Northland Chamber of Commerce has also warned New Zealand Transport Agency Waka Kotahi (NZTA) the closure could have an “inflationary effect” on the region’s economy.
Egan said transport costs were also passed on to his supermarket business last February, when Cyclone Gabrielle caused numerous slips, closing the Brynderwyns either fully or partially right up until mid-April.
The upcoming work, from February 26 to sometime in May, is to fix more slips and weak areas following that storm damage to get the road back to how it was before the weather events.
Egan said the frequent closures also impacted staffing.
“We have to be careful of the number of staff we employ and how much work we give them.”
And while Egan said he won’t reduce staff hours, “we prepare for it”.
“We’re coming out of the Christmas period, where we’ve employed lots of students and they’re going back to school.
“We’ll be careful about replacing them, because when the Brynderwyns close, we’ll get remarkably quiet.
“We’ll be holding off on employing more people until we find out the real impact of it.”
NZTA is to close the Brynderwyns from February 26 until March 27. SH1 will then reopen for six days over the Easter period before closing again on April 3 until May.
While cars can detour through Mangawhai and Waipu, adding around 30 minutes, freight is likely to be directed through Paparoa Oakleigh Rd, with heavy freight having to drive through Dargaville on SH12 and SH14.
“Some businesses will choose to pass those increased costs through.
“It’s a decision business owners make on a daily basis: ‘If costs rise, is there a way to recoup those, or do I absorb them?’
“We’re already in a cost of living crisis - to then turn around and add more costs and expect them to absorb it, that to us was patently unfair.
“Our advice to NZTA was to brace themselves. There could be an inflationary effect of this unless the agencies responsible assist with the increased costs.”
Karam Gill, who owns JVR Pricecutter Store in Kawakawa, said if transport prices increase, “it will affect my business”, as most of her deliveries come from Auckland.
“Some we will absorb ourselves, depending on how much they are charging. If they’re minor, we will ignore it, but if it’s huge, it will make a difference.”
Four Square Kawakawa manager Priyanka Bhikha said she wasn’t looking forward to delayed deliveries.
“[There are] going to be later deliveries, which is frustrating for us because we already have to wait around. It’s going to be late deliveries for nine weeks.
“What can we do? We can’t do much about the situation.”
As for price increases, the store wouldn’t be putting up prices because “our prices come from Foodstuffs, we have to go with that”.
“We’ll still have our locals. We service the community, and they’ll keep shopping here,” Bhikha said.
Jenny Ling is a news reporter and features writer for the Northern Advocate. She has a special interest in covering roading, lifestyle, business, and animal welfare issues.