Transport companies are considering protests against carbon budget targets amid rising operating costs

TRANSPORT COMPANIES have threatened protests against new government targets to reduce carbon emissions across the economy.

The proposals are contained in an important report by the Climate Change Advisory Committee released this week recommending that the government put in place three consecutive five-year carbon budgets to meet its target of halving emissions by 2030.

If the plan is adopted by the Oireachtas, emission limits will be set for specific sectors, including transport and agriculture.

However, Eugene Drennan, president of the Irish Road Haulage Association (IRHA), said on RTÉ Radio One’s Morning Ireland show that the hauliers will meet over the next 14 days to discuss whether to protest the proposals.

“We are deeply concerned about the emissions reductions. We have been identified as a sector that will suffer a major cut, ”said Drennan.

He said that the costs for companies in the industry were already “astronomical” due to the driver shortage, the increase in the CO2 tax announced earlier this month as part of the 2022 budget, and generally rising fuel costs.

“Nobody saw the specific details in any sector – so that’s the number one concern,” said Drennan The diary this morning after his radio appearance.

But the main concern is that we contributed 73 million euros to the CO2 tax last year. We will contribute over 100 million euros next year. We’ve been paying carbon taxes for about five years now, and fuel is already taxed to the limit here.

Environment Minister Eamon Ryan has announced that the sector-specific limit values ​​will be announced shortly.

However, Drennan said rising costs in other areas weigh on the transportation sector this year. Gasoline and diesel prices have risen sharply, in part related to higher crude oil prices due to a recovery in global demand.

The price of AdBlue – a diesel additive that reduces nitrogen oxide emissions in exhaust gases – has “doubled in recent months,” he said due to skyrocketing natural gas prices across the European Union.

AdBlue is a by-product of fertilizers made with ammonia extracted from gas. However, some fertilizer manufacturers in the UK and across Europe have had to cut production due to rising gas prices.

A long-term shortage of skilled workers combined with the effects of the pandemic has led to a driver shortage in the run-up to Christmas.

Forwarders said earlier this month The diary the Many Eastern European drivers used to travel on British land bridge routes from Ireland to mainland Europe. But since Brexit, these routes have become more difficult, due to additional administrative and customs controls that lead to long delays.

“So many drivers have returned to Poland, and [former] Eastern bloc countries and they avoided the trouble, ”said Wexford TD Verona Murphy – a former president of the IRHA.

This has resulted in many companies having to raise wages to attract workers.

When asked whether the prevalence of low wages in the transportation sector was a factor in the shortage, Drennan said there are certainly “pockets” in the industry where low wages are still an issue.

However, he said, “I’m happy that the riders have seen gains this year and I see areas where it could be increased again. But at the top end, many companies get the most out of the sales they can achieve. “

Drennan said that many companies using trucking companies have “consistently refused” to accept increases in transportation prices, despite the cost increases that trucking companies have suffered.

“We have some very large PLCs that are slow to recognize our cost increases. So if you can’t pick up the money, you can’t pay [more to drivers],” he added.

The Department of Transportation established the National Logistics and Supply Chain Skills Group in 2019 to “help promote careers, skills development and sustainable employment in the logistics and supply chain sectors”.

In a statement last month, the department said The diary, “The Secretary of State for Transport, Hildegarde Naughton TD, has asked the group to investigate the specific problem of driver shortage in the industry and provide recommendations for actions the government can take to improve the supply of skilled drivers.

Drennan said the report is expected to be presented to the minister before Christmas.

He said stronger support for truck driver training courses and wider recognition of non-EU truck driving licenses would help alleviate the driver shortage.

“I would hope that some of our comments and contributions will be heard on this and other government forums,” he said.

“But at the moment there is little evidence that you are hearing anything.”