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Pricing Submission - Australia - Cost recovery works, ATA says in
Australia -Supply Chain Review -12 May 2006: -- The trucking lobby believes the current cost allocation model works well and should continue, despite arguing the system had failed in the last round of cost allocations... A change to direct mass and distance charging is "problematic" and could lead to inefficiencies and administrative headaches, the Australian Trucking Association (ATA) argues in its submission to the Productivity Commission inquiry into road pricing... Imposing full infrastructure and externality costs is not the answer, the ATA says, because it doesn’t necessarily promote competitive neutrality or an efficient allocation of resources... The ATA argues higher costs don’t necessarily lead to less demand. If full externality pricing applied — pushing up freight rates 12 percent according to the Bureau of Transport and Regional Economics —it would see a 10 percent decrease in the quality of road freight demanded...
posted by Unknown @ 5:26 PM
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