Reaction: Compliance costs crushing for transport

Calven Bonney, whose company specialises in carting bulk goods, including sugar, wine, grain, fertilisers and dangerous goods, says times have never been tougher in the transport business.

Compliance costs and soaring fuel prices are hampering cartage firms and the average person will soon begin to feel it when food bills increase, he says.

"I know operators who are spending their whole time doing paperwork, and then trying to keep up with the costs of compliance," Mr Bonney said.

"Wages are increasing slowly, and the exchange rate makes it hard to bring in new trucks."

And the Budget, with no specific policies to deal with Auckland's congestion despite plans for expanded economic development programmes, has delivered nothing except "disappointment."

"They have not done anything to give us relief, or to help with growth.

"We would have loved to have seen some lowering of the company tax rate."

"I would like to have seen something done with the excise tax on petrol - putting it back into a roading fund rather rather than the consolidated fund, especially to help Auckland business."

LW Bonney and Sons is a 55-year-old family firm, and Mr Bonney is a third-generation chief.

Mr Bonney would like to see some relief from compliance costs before more transport operators go under.

"This is not a big money-making industry, it's a hard industry," he said. "We're not allowed to recoup any of the losses on fuel, and a lot of operators haven't reacted - until it's too late - to increased costs.

He's not certain that a Government plan to introduce new road user charges before the next election is going to please him, either.

As a transport operator Mr Bonney says he is happy to see a road toll.

However he says that tolls "should be used to cover core capital expenditure, not maintenance."

He cites a situation like that of the Tauranga toll bridge - "it's been paid for four times" - as negative.

"There's a policy in front of Government at the moment for the reorganisation of the cost allocation and we'd like to see that implemented," Mr Bonney says. "The industry could not face increases in road user charges."

"We're paying 20 per cent more than the rest of the world, and 20 per cent more than we should be. We would like it shared out more evenly.

"That's why I suggest there should have been some excise tax moved from the consolidated fund to a roading fund."

He says the Budget offers no incentive for people to invest in their businesses.

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