<p>A standardised pricing structure would have perverse consequences on the trucking industry, the Australian Trucking Association (ATA) said last week (Friday, May 12). </p> <p>In a submission to a Productivity Commission pricing review of road and rail infrastructure pricing, the ATA said standardised pricing would not work in practice.</p> <p>“[It] may seem an attractive path to take as it would theoretically promote competitive neutrality and a more efficient allocation of resources,” the ATA’s submission said.</p> <p>“In practice, however, this approach would have significant perverse consequences and may do neither well, especially if costs offsets are not provided.”</p> <p>The submission said that increasing heavy vehicle fees would not drive down demand for road freight and would only increase freight costs.</p> <p>“There is a view that in recovering infrastructure costs and imposing price controls, that government may inadvertently be promoting an anti-competitive environment within those freight markets where road and rail are possible substitutes,” the submission said.</p> <p>Launched in February after a meeting of the Council of Australian Governments, the review will examine pricing reforms, including distance-based charging, where fees would be applied depending on how far a journey went. </p> <p>ATA chief executive Stuart St Clair said the review was a significant step by the state and federal governments to look at future demands and needs of the freight industry.</p> <p>“ATA strongly supports the review in ensuring a fair and efficient land transport pricing regime that maximises the productivity of Australia’s freight transport industry,” Mr St Clair said. </p> <p>The commission’s website had received only five submissions by Wednesday last week (May 10), including two from Tasmanian lobbyist Peter Brohier. </p> <p>Submissions closed on Friday ahead of a draft report in September. </p> <p>The commission will release its final report in December. </p> <br />
