Emergency measures sought to resolve road haulage crisis

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Representatives of Finnish Transport and Logistics (SKAL), three ministries, and the commerce and industry sectors held an hour-and-a-half meeting in the Savoy Restaurant in Helsinki on Tuesday morning. The topic of the meeting was the financial crisis facing the road haulage business.
      SKAL chairman Ahti Myllys warns entrepreneurs in the branch against jamming the Midsummer weekend rush on highways with a go-slow protest.
      “The branch will lose the support of the public, if by blocking the traffic the Midsummer festivities are ruined for a million people.”
      The Automobile and Touring Club of Finland and Transport Workers' Union AKT also disclaim the planned Midsummer protest of the haulers.
      All involved parties agree that a solution must be found. On Wednesday next week, Minister of Economic Affairs Mauri Pekkarinen (Centre) and Minister of Labour Tarja Cronberg (Green) will meet with the parties involved.
     
Tax credits alone are not enough to alleviate the crisis, SKAL says. Iiro Lehtonen, the managing director of SKAL, emphasises the responsibility of the fields of commerce and industry. Rises in price have to be included in the new transportation contracts.
      “The government can deduct EUR 1,900 from a truck-trailer's annual fees, but the risen fuel prices have added EUR 30,000 to a vehicle’s annual costs”, Lehtonen compares.
     
This loss of margin has to be dealt with as soon as possible.
      “Already a third of the businesses are operating at a loss. Regardless of the size of the company, those that fail to renew their contracts will be the first ones to go down.”
      Only a fraction of the operators have a contract that takes into account the upward surge in operating costs.
      The Finnish industries are less than thrilled with the suggestion that the purchasers of services would pick up the additional tab.
      “Nevertheless, we do have to discuss together how to maintain the viability of the transportation sector”, agree director of logistics Harri Rumpunen of the Finnish Forest Industries Federation and Rautaruukki logistics planning manager Mauri Vikeväinen.
      “Taxes, flexible contracts, and possible lowering of employers’ social security expenditure”, lists state secretary Mikko Alkio of the Ministry of Employment and the Economy as possible tools for averting bankruptcies in the road haulage sector.
      “The big question is how to create a situation where everybody wins. The survival of the transportation field is fundamental from the point of view of Finland’s competitiveness”, Alkio adds.
      The EU leaders will also touch on the subject of fuel prices at this week’s summit meeting in Brussels.
     
Before noon on Tuesday, Lehtonen of SKAL also managed to share his concerns with Prime Minister Matti Vanhanen’scabinet.
      “I will also visit the Ministry of Social Affairs and Health this week. We will negotiate over the lowering of the social security fees. The fees in the lowest possible group are 2.8%, but at the moment the road haulage business struggles in the highest group of 5.9%, together with heavy industry”, Lehtonen pointed out.


Previously in HS International Edition:
  Transport business association appeals against Midsummer traffic slowdown (17.6.2008)
  Police will intervene if truckers undertake go-slow protest in Midsummer traffic (16.6.2008)
  Finance Minister offers no relief to small transport companies (12.6.2008)

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