THE TRUCKING industry will be involved in the Government’s future consultations about the availability of credit to businesses.
The decision follows a meeting between industry representatives and the Minister for Small Business, Independent Contractors and the Service Economy, Dr Craig Emerson.
Credit availability has been a major problem across the trucking industry as a result of the economic downturn, and in the past year major lenders have effectively stopped lending to transport companies, or are imposing additional hurdles.
ATA Chairman Trevor Martyn said the industry used the meeting to provide the Minister with the results of its credit availability survey, conducted in March-April 2009.
139 trucking operators completed the survey.
According to the ATA, the survey revealed that 38 per cent of trucking operators found it harder to secure finance in the last six months.
Additionally 67 per cent of trucking operators expected it will become harder to get finance in the next six months.
The Managing Director of MaxiTRANS, Michael Brockhoff, said the shortage of credit was affecting the ability of trucking companies to use the Government’s 30 per cent investment allowance.
Brockhoff said the 30 per cent investment allowance has created an upsurge of interest in buying new equipment, but many trucking companies are having trouble getting credit to turn their interest into sales.
He added they are urging the Government to extend the cut off date for the 30 per cent investment allowance.
Martyn said Minister Emerson was extremely interested in the briefing, initiated by industry representatives, and agreed to involve the trucking industry in the Government’s further consultations on such issues.
He added one of the trucking industry’s next steps would be to lobby senators to pass the 30 per cent investment allowance.
In the weeks to come, the ATA said it will be urging the Coalition and independent Senators to pass the investment allowance legislation and lock in its benefits for trucking operators and suppliers.
The industry representatives at the meeting were ATA Chairman Trevor Martyn, the Chairman of the ATA’s Transport and Economics Policy Committee, David Simon, the Managing Director of MaxiTRANS, Michael Brockhoff, the Managing Director of Paccar Financial, Roland Hollingsworth, and ATA Chief Executive Stuart St Clair.
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