Battling to stay on the road

Haulier says costs forcing people out of business

Damien Maher

As the government introduces a further €18m for the haulage sector to assist with high energy costs, one local firm admits it is getting increasingly more challenging to remain in business.

Mickey Dan Murtagh, based in Newdown, The Downs, Mullingar, has been working in the industry for the last 23 years and admits the current economic climate is the most challenging he has experienced. While he welcomes the latest intervention package, he says the government needs to address the increased excise duty, which is a huge burden on the industry.

“We are facing huge bills for diesel, servicing and insurance, to name just a few, and it’s getting much tougher to remain in business,” he said.

The cost of running the business has increased by 30% since the energy crisis began in 2022, with the price of diesel alone now 50% higher than what it previously was. Under the latest scheme announced by the government, the Department of Transport is paying €1,200 per vehicle over the coming weeks, depending on the numbers being operated by each operator.

“It’s welcome, but it’s only a drop in the ocean for hauliers. It’s a one-off subsidy and it’s great to get help, but the real challenge for us is the excise duty on fuel. It’s a killer for us. The price of oil is dropping, but fuel is not coming down at the pumps,” he said.

On top of excise duty, at over 30 cent per litre, there is 23% VAT on diesel for hauliers. Excise duty will increase from March 1, so even with the latest intervention measures, the cost is considerable and hauliers are facing a clear crisis.

“Increases in the last year mean we face a bill of €5,000 per week on diesel alone. When it was at its most expensive last year, it cost us around €6,000 per week, so while it has dropped a little, the price of fuel is still seriously high and it’s making it difficult to stay in business,” said Mickey Dan.

Mickey Dan has a small firm and runs three trucks, transporting livestock and livestock feed. He employs two drivers full-time, but has found that increasing costs are putting the business under pressure to survive.

Public liability insurance costs roughly €25,000 per annum. Tyres are €600 each – he recently paid €3,000, plus VAT for a new set. The cost of motor tax is around €1,000 per annum for each truck, which is manageable but still quite considerable.

He works long hours and days begin early. He says the government should target more support for those who are working and keeping the country going in difficult times.

“We just have to keep going and it is a pity the government can’t do more for workers. I appreciate they are under pressure from all sides, and it is a challenging time economically, but there are people dropping out of business because they can’t afford to stay operating,” he said.

Mickey Dan is also facing a challenge from the pig industry, where haulage rates are kept low.

“I’m in the business for about 23 years at this stage. It’s my life and I enjoy it, but staying on the road is not getting any easier,” he said.

The Department of Transport confirmed that for the last six months of 2022, fuel prices for operators continued to be just under €300 per vehicle more expensive per week than in 2021.

Last year, under a similar scheme, €100 per week was paid for every heavy goods vehicle listed on a road haulage operator’s licence. The payment was made over a period of eight weeks, at which point it was reviewed. The total cost of last year’s scheme to the exchequer was €18m.