The Australian Government should confirm it will support a mandatory code covering payment terms for small trucking businesses, the CEO of the Australian Trucking Association Christopher Melham has said.
Mr Melham was responding to the Australian Small Business and Family Enterprise Ombudsman’s report on the former Road Safety Remuneration Tribunal. The Government released the ASBFEO report today.
“In its report, the ombudsman recognised that payment terms and timeframes are a prominent issue for small trucking operators,” Mr Melham said.
“The report recommended that the Commonwealth Treasury and the ACCC should work with industry to investigate developing a code of practice under the Competition and Consumer Act.
“The ATA strongly supports this recommendation, which echoes our call during the election campaign for a mandatory code. A mandatory code under the Act would address the payment terms issues facing small trucking businesses.
“The code would need to cover payment times, a prohibition on set-offs and pay-when-paid arrangements, and alternative dispute resolution.
“The ACCC would be a highly credible regulator for the code. The ACCC already regulates five mandatory codes and one prescribed voluntary code in other industries. It has all the powers it needs to enforce mandatory codes and audit compliance.”
Mr Melham said the report confirmed the importance of the industry’s campaign to abolish the RSRT, which included a convoy of owner drivers led by the ATA Safety Truck to Parliament House.
“The report highlights the devastating impact of the RSRT’s payments order, which included financial hardship, increased debt, reduced equipment values, widespread uncertainty and significant stress on families, relationships and mental health,” he said.
“The RSRT did not improve road safety. The best way to improve safety is through practical measures, such as:
Reforming the road transport laws, with important amendments introduced into the Queensland Parliament this week. Mandating truck and trailer stability control. A review of truck driver licensing and training. A national information campaign for car drivers about how to share the road safely with trucks.