DESPITE pleas from trucking manufacturers, The Federal Government has announced it will not extend the timeframe for its 30% allowance.
Members of the trucking industry have called for the deadline to be revised on the basis that trucking operators require additional time to gain finance for purchasing new equipment.
But the Government said it will not budge on the 30 June 2009 phase-out date.
A spokesperson said the incentive is helping stimulate the economy, and many businesses are taking advantage of it.
However, manufacturers and financial experts have warned the industry’s inability to obtain finance may hinder the effectiveness of the scheme.
Paccar Financial Managing Director Roland Hollingsworth said the industry has applauded the Government’s investment allowance stimulus, but is mindful that it can only advantage companies that can access funding to purchase new equipment.
MaxiTrans Managing Director Michael Brockhoff has been one of the loudest voices behind the call to extend the incentive.
Brockhoff said many trucking companies are having trouble getting credit to turn their interest into sales. As a result of the credit shortage, the incentive has not had enough chance to kick in, he said.
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