Hauliers warn of action over fuel costs

Road hauliers are facing "melt-down" because of rising fuel costs, and will mount industrial action unless the Government intervenes, a representative has warned.

The Irish Road Haulage Association said a 30 per cent increase in diesel prices over the past six months had caused several companies in the sector to go out of business.

Spokesman Mr Jimmy Quinn added that what he called the "failure of the industry to engage in meaningful dialogue" on the issue meant that a fuel surcharge would soon have to be imposed.

He also warned that the hauliers would mount another "day of action" if the Government did not come to its assistance.

However, the employers' organisation IBEC expressed surprise at the comments, and said the IRHA had not sought to discuss fuel prices with it in the recent past.

IBEC's transport director Mr Reg McCabe said rising fuel prices affected many areas of industry, but he would welcome the opportunity to discuss the haulage companies' concerns with representatives.

The last work stoppage by hauliers - in September 2000 - was also a response to rising diesel prices, and led to intervention by the Minister for Finance in the form of a 5 pence a litre tax reduction.

But Mr Quinn said the reduction was wiped out in the 2001 budget, and the most recent price rise - 4½ cents last week - meant that many companies now risked "going to the wall".

The crisis had been exacerbated by rising insurance prices, he added, but the 30 per cent climb in diesel price was a particular reason for alarm.

"Unless we get moral and practical assistance from this Government, we will be staging a day of action across the country as the costs are now out of control, " Mr Quinn said.

Some 1,500 trucks took part in the 2000 protest, and losses to business were put at up to £20 million (€25.4 million) by the Small Firms Association.

The IRHA cannot represent members in negotiations on job pricing, Mr Quinn said, but it was advising haulage companies to seek urgent talks with their customers.