Haulage slump threatening NI's export economy
THE haulage industry is "hemorrhaging badly" and threatening the ongoing commercial viability of the Province the Northern Ireland Exporters Association (NIEA) has warned.
Describing the haulage and logistics industry as "the lifeblood of commerce in Northern Ireland," the NIEA said it was alarmed at its current condition and the lack of support to help it survive the recession.
In a separate development, Northern Ireland Manufacturing (NIM) called on the Executive to provide the manufacturing sector with an 'adrenaline shot' to protect jobs in the recession by bringing forward a rates 'break'.
Representing most of Northern Ireland's leading export companies, the NIEA said that while both the devolved and national governments had indicated export revenue was a key factors in a recovering economy the parlous condition of the haulage sector posed a threat to any potential
recovery.
Referring to a decline in the number of lorries on the road and a dramatic increase in the number of drivers out of work, NIEA director Robert Hamilton said support was urgently needed to make sure it survived.
"In the last quarter of 2008 the total number (of goods vehicles] fell seven per cent on the same period in 2007 - and early 2009 could see steeper falls, according to the UK Department of Transport," he said.
"Data released by the Office for National Statistics shows that a year ago there were just over 3,000 lorry drivers receiving jobseeker's
allowance in the UK. Today that number is more than 15,000 - an increase
even more dramatic than that for bricklayers and masons.
"When this happens, in medical circumstances, pressure is put on the wound to stop bleeding and the patient is stabilised, much like the treatment the Government gave to the financial institutions."
Instead the haulage industry, which had already fought for its survival, was being left once again to fend for itself.
The RHA, which estimates that there are one million people in the UK who rely on the haulage and logistics industry for work, says its survival is vital to Britain's recovery from the recession.
"Over past years exporters and logistics providers have worked hard to be 'lean and mean' and still remain competitive, and this has borne the result of Northern Ireland becoming a well known exporting region across the globe, not withstanding the inward investment this has drawn to the Province."
Explaining the proposed industrial rates break, NIM chief executive Bryan Gray said it would put funds straight back into companies in urgently need of capital, allowing manufacturing businesses to retain staff who might otherwise be laid off.
"The most important thing here is speedy intervention," he said. "The Executive lifts 20 million a year from the rate at present; a boost of 20 million for the sector overall would be an adrenaline shot for manufacturing, and would prove that the Executive can act quickly and decisively to help save jobs and boost the economy.
"We will be seeking meetings with the relevant Ministers to take the issue forward, and will be encouraging our members to contact their local MLAs to ensure the seriousness of the current situation,
and the need for swift action is heeded."
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Wednesday 15 February 2012
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