SUBMISSION
A NATIONAL FRAMEWORK FOR
REGULATION, REGISTRATION AND
LICENSING OF HEAVY VEHICLES
NATIONAL FARMERS’ FEDERATION
ABN 77 097 140 166
Prepared by:
Andrew Wilsmore
Manager – Rural Affairs
1
National Farmers’ Federation Submission –
Regulatory Impact Statement for the National Framework for Regulation, Registration and Licensing of Heavy Vehicles
Contents
EXECUTIVE SUMMARY ............................................................................3
1.
INTRODUCTION ............................................................................... 4
1.1
2.
3.
FARM FACTS .......................................................................................... 5
SUBMISSIONS.................................................................................... 6
2.1
Problems .................................................................................................... 9
2.2
Related Issues .......................................................................................... 11
2.2.1
National Road Network ................................................................... 11
2.2.2
Enforcement Costs ........................................................................... 11
2.2.3
Primary Vehicle Concessions .......................................................... 12
2.2.4
Common Sense ................................................................................ 13
CONCLUSION .................................................................................. 15
2
National Farmers’ Federation Submission –
Regulatory Impact Statement for the National Framework for Regulation, Registration and Licensing
of Heavy Vehicles
Executive Summary
 There are currently inherent differences between state authorities in
regulation, registration, and licensing of heavy vehicles, all of which create
inequities between transport in various jurisdictions.
 Over-regulation or unpredictable regulation can adversely impact on the cost
of transport and on incentives for new investment, particularly given the large
costs and lengthy time-horizons involved. A coherent, transparent and stable
regulatory environment is needed to encourage investment in appropriate modes
of transport.
 Any legislation, regulation, registration and licensing that increases the costs
of doing business affects Australia’s international competitiveness and drags
on productivity.
 Previous efforts at a national approach have failed due to lack of good will
and agreement across jurisdictions. This is the most significant barrier to
overcome to achieve an efficient heavy vehicle industry in Australia.
 Correcting these differences is logical, simplistic and should have been acted
upon before now on common-sense grounds alone.
 A ‘national’ approach that allows individual jurisdictions the right to
‘administer’ and as a result, confer different meanings and interpretations
should be avoided at all costs.
 Too often farmers invest in on-farm infrastructure only to face supply chain
infrastructure and regulation that is not up to the same level of international best
practice. It is vital that farmers have this commitment to ensure the future of our
rural export sector.
 For the Australian farm sector and for the nation, a national framework for the
regulation, registration and licensing of heavy vehicles will be a key productivity
driver into the next decade.
3
National Farmers’ Federation Submission –
Regulatory Impact Statement for the National Framework for Regulation, Registration and Licensing
of Heavy Vehicles
1. INTRODUCTION
The National Farmers’ Federation (“the NFF”) is the peak farming lobby group
representing producers of all major commodities in relation to issues affecting
more than one State or commodity. The NFF’s membership comprises State farm
and commodity organisations with individual farmer members.
There are currently inherent differences between state authorities in areas such as
header transportation guidelines, livestock and fodder loading, varying speed
rules, multi-trailer restrictions and general permit thresholds, all of which create
inequities between transport in various state jurisdictions.
There are currently 750 separate agencies across the nation responsible for
controlling Australia’s 800,000km of roads, representing a $100 billion asset1.
Figures such as these are a concern for the farming community who every day are
directly affected by inconsistencies in the regulatory transportation framework in
which it operates.
Over-regulation or unpredictable regulation can adversely impact on the cost of
transport and on incentives for new investment, particularly given the large costs
and lengthy time-horizons involved. A coherent, transparent and stable regulatory
environment is needed to encourage investment in appropriate modes of transport.
For the Australian farm sector and for the nation, a national framework for the
regulation, registration and licensing of heavy vehicles will be a key productivity
driver into the next decade.
1
Export Freight, Friction Freight, October 2006
4
National Farmers’ Federation Submission –
Regulatory Impact Statement for the National Framework for Regulation, Registration and Licensing
of Heavy Vehicles
1.1 FARM FACTS
Through developing new technologies, seizing environmentally-sustainable farm
practices, and improving efficiencies and competitiveness modern farming is
essential to Australia’s economic, environmental and social wellbeing, and a vital
source for Australia’s food security and, increasingly, mounting world food needs.
Farming is a mainstay of Australian ingenuity, adaptability and enterprise.

Australian farms and their closely related sectors generate $103 billion-ayear in production - underpinning 12% of GDP (based on modelling by
Econtech for the Australian Farm Institute, Australia's Farm Dependent
Economy Report, 2005.)

There are 154,472 farms in Australia - including those for whom farming
is not their primary business. However, there are 137,969 farms solely
dedicated to agricultural production.

The gross value of Australian farm production (at farm-gate) totals $35.6
billion-a-year.

Australian farmers invest $237 million-a-year in research and
development. This is over and above the $217 million spent by Federal
and State Governments each year on agricultural research and
development.

Over the last 30 recorded years (1974-75 to 2003-04), Australian farms
have consistently achieved average multifactor productivity growth of
2.8%-a-year - no other industry, with the sole exception of
telecommunications and information technology, comes close to this
achievement (Australian Government Productivity Commission, Trends in
Australian Agriculture 2005).

Key to this productivity growth have been advances in knowledge and
5
National Farmers’ Federation Submission –
Regulatory Impact Statement for the National Framework for Regulation, Registration and Licensing
of Heavy Vehicles
technology, improved use of available technologies and management
practices, and structural changes that have seen increased farm size and
shifts in enterprise mixes (Australian Government Productivity
Commission, Trends in Australian Agriculture 2005).

As a result, Australian farming is world-leading and ultra-competitive. In
fact, despite a 50% fall in agricultural terms of trade since 1960,
Australian farmers have tripled their production (from an index measure of
37 in 1960-61, to 107.6 in 2003-04), as well as tripled the real gross value
of their produce (from $10,557 million in 1960-61, to $30,338 million in
2003-04) (Australian Government Productivity Commission, Trends in
Australian Agriculture 2005).
2. SUBMISSIONS
Australian farming is overwhelmingly export-oriented. A massive 98% of
Australia’s wool and cotton is exported. Two-thirds of our beef and three-quarters
of our wheat heads overseas. Some 80% of our sugar and over half of our dairy
production are destined for world consumer markets.
Coupled with this export focus of primary production is our need to meet
domestic demand. Farmers need efficient transport to food and clothing
processors so that these industries (and the entire supply chain that relies on
primary production) are internationally competitive, non-inflationary, and
efficient.
With escalating rationalisation taking place within the agricultural processing
sector, farmers are increasingly required to cross state borders when taking their
produce to market. This intensifies the importance of providing consistency
between the regulations imposed by the various tiers of government. Nowhere is
6
National Farmers’ Federation Submission –
Regulatory Impact Statement for the National Framework for Regulation, Registration and Licensing
of Heavy Vehicles
this better demonstrated than by transport regulations where State rules often
conflict, causing confusion for farmers and their supply chain partners. In such a
circumstance, industry is looking for the Federal Government to take a leadership
role in providing consistency across borders.
To efficiently compete in domestic and world markets, Australian farmers need
the cleanest, easiest and least burdensome path to market possible.
Achieving a secure world-class economic and efficient transport sector will
deliver significant productivity gains, reduce our cost to market, and improve
farmers terms-of-trade.
Farmers have achieved average productivity growth of 2.8% during the past two
decades and delivered an industry that effectively competes within one of the
global market’s most distorted sectors.
Government support for Australian farms represents just 6% of farming income.
By comparison, according to the Organisation for Economic Cooperation and
Development (OECD)2, in Korea it’s 63%, Japan 53%, in the European Union it’s
32%, in Canada it’s 23%, and in the United States it’s 11%. The below graph
from the OECD sets out producer support estimates by country.
2
OECD, Agricultural Policies in OECD Countries: Monitoring and Evaluation 2007
7
National Farmers’ Federation Submission –
Regulatory Impact Statement for the National Framework for Regulation, Registration and Licensing
of Heavy Vehicles
Note: Countries are ranked according to 2004-06 levels. For more detail, see Annex Table III.1.
1. EU12 for 1986-94 including ex-GDR from 1990; EU15 for 1995-2003; EU25 from 2004.
2. For Mexico, 1986-88 is replaced by 1991-93.
3. Austria, Finland and Sweden are included in the OECD total for all years and in the EU from 1995. The Czech
Republic, Hungary, Poland and the Slovak Republic are included in the OECD total for all years and in the EU from 2004.
The OECD total does not include the six non-OECD EU member states.
Source: OECD, PSE/CSE database, 2007.
To make the point clear, Australian farmers are the least protected in the world
(Australia is now the second least protected to New Zealand).
The farm sector has a strong case for Government to support and ensure the
ongoing viability of the farm sector to produce food, protect the environment and
sustain regions.
Continual reform and improvement is needed in the farm supply chain to maintain
high productivity improvements and for Australian farmers to remain
internationally competitive.
Any legislation, regulation registration and licensing that increases our costs
of doing business affects our international competitiveness. Farmers view such
impediments as a “tax” on their productive capabilities. Any “taxes” on exports
affect not just farmers, but Australia’s national interests.
For 20 years the National Farmers’ Federation (NFF) in Australia has strongly
argued that the viability of farming – today and tomorrow – and that of Australia’s
$30 billion-a-year agricultural export sector – is inextricably linked to
8
National Farmers’ Federation Submission –
Regulatory Impact Statement for the National Framework for Regulation, Registration and Licensing
of Heavy Vehicles
international trade and having a competitive economic environment at home.
It is for these reasons, that the NFF supports the:
 Objectives of National Transport Reform
 Principles of the ATC agreed approach to heavy vehicle regulatory reform
 Best Practice regulation
The proposal for a national coordinated and nationally consistent approach to
regulation, registration, and licensing of heavy vehicles is therefore welcomed.
The NFF does, however, note that mechanisms already exist for this approach to
be achieved, but have previously failed due to lack of good will and agreement
across jurisdictions.
This is the most significant barrier to overcome to deliver an efficient heavy
vehicle industry in Australia.
In good faith, we support a national approach that involves the good faith of the
jurisdictions.
Too often farmers invest in on-farm infrastructure only to face supply chain
infrastructure that is not up to the same level of international best practice. It is vital
that farmers have this commitment to ensure the future of our rural export sector.
2.1 PROBLEMS
The nature of the problems outlined in Section 4 of the Consultation Regulatory
Impact Statement and why these inconsistencies are a problem (as outlined in
Section 5) are well known, previously documented, discussed at roundtables,
forums and workshops, and been the matter of industry submissions to
government for a long time.
9
National Farmers’ Federation Submission –
Regulatory Impact Statement for the National Framework for Regulation, Registration and Licensing
of Heavy Vehicles
As such, we are pleased to provide our previous submissions3 in answer to the
questions posed for consideration, but feel the process is better served by
acknowledging the inconsistencies, the red-tape, the additional costs impositions,
etc, are all against the national interest and should be removed.
The NFF welcomes formal Government recognition of the issues that regulation,
registration, and licensing have on industry, and the desire of the Ministerial
Council and COAG to correct these problems.
Jurisdictional differences hamper Australia’s international competitiveness and
drag on productivity.
Correcting these differences is logical, simplistic and should have been acted upon
before now on common-sense grounds alone.
The fact that they have not has been a result of independent jurisdictional control.
Any new model that maintains a role or administration function by individual
jurisdictions is likely to be plagued by the same problems highlighted in Sections
4 and 5 of the Consultation RIS.
3
The Cost of Bureaucratic Red Tape on Agriculture (95.5 kb PDF)
Submission on Infrastructure Australia (397.6 kb PDF)
Submission to the Senate Committee on Fuel and Energy (504.7 kb PDF)
Submission to the National Transport Commission on B-Triple Road Network Access (223.5 kb PDF)
Submission to the 2007 Heavy Vehicle Charges Determination: Draft Regulatory Impact Statement (314.3 kb PDF)
Submission to the Productivity Commission Regulatory Burdens on Business (Primary Industry) Review (138.1 kb PDF)
2007 Federal Budget Submission (143.8 kb PDF)
Submission to the Productivity Commission Study into Road and Rail Freight Infrastructure Pricing (99.9 kb PDF)
Submission to the Australian Government Regulations Taskforce (84.3 kb PDF)
10
National Farmers’ Federation Submission –
Regulatory Impact Statement for the National Framework for Regulation, Registration and Licensing
of Heavy Vehicles
Australia already has instances of ‘national’ approaches that allow individual
jurisdictions the right to ‘administer’ and as a result, confer different meanings
and interpretations.
This should be avoided at all costs.
The NFF urges jurisdictions to adopt a national approach that will deliver an
outcome in Australia’s best interests.
2.2 RELATED ISSUES
2.2.1 NATIONAL ROAD NETWORK
The NFF does highlight as part of a nationalised approach to regulation,
registration, and licensing of heavy vehicles should be partnered to a nationalised
approach to the road network.
Improved access to the road network for higher productive vehicles will help
offset costs; improve efficiency; assist environmentally; and above all, increase
productivity.
If for example, a national width or height limit for hay transport is such that a
transport will not be wide enough or low enough to travel a significant transport
corridor of road, then the jurisdictional response should be to improve that road to
meet Australian productivity standards. The jurisdictional approach should not be
to retrofit regulation to suit poor infrastructure.
2.2.2 ENFORCEMENT COSTS
A new system should also be devoid of the incorporation of enforcement costs.
Enforcement costs merely encourage the establishment of a permanent
bureaucracy that has little intention of reducing breaches or the seeking of world’s
11
National Farmers’ Federation Submission –
Regulatory Impact Statement for the National Framework for Regulation, Registration and Licensing
of Heavy Vehicles
best practice. The focus of enforcement must be to reduce incidents of breach,
rather than to secure an income stream for Governments that is completely
decoupled from the behavior of truck operators
The Principles of Best Practice Legislation should be enshrined in any new
approach and no holes allowing individual jurisdictions to enforce for revenue
raising purposes.
2.2.3 PRIMARY VEHICLE CONCESSIONS
The NFF recently coordinated survey results from NSW Farmers Association,
The Victorian Farmers Federation and Agforce Queensland, who provided
information on truck ownership and usage by farmer members. In summary, the
collated truck farm survey found the following:
 Members, on average, own 1.56 heavy vehicles per-farmer.
 Members‟ heavy vehicles are used on average for only 5.4 months of the
year.
 Average annual distance travelled on-road by members heavy vehicles
was only 4,741 kilometres.
 Average annual distance travelled off-road by members heavy vehicles
was only 1,511 kilometres.
 Only 39 per cent of heavy vehicle trips made by survey participants are
fully laden.
Information on the distance travelled on-road is particularly important in
demonstrating the relatively low on-road use of heavy vehicles by farmers and the
importance of concessions for primary industry vehicle registrations within their
vehicle class.
12
National Farmers’ Federation Submission –
Regulatory Impact Statement for the National Framework for Regulation, Registration and Licensing
of Heavy Vehicles
The NTC4 importantly acknowledges that “primary producers generally operate
vehicles well below average usage” and that state Governments have provided
state concessions for heavy vehicle registration charges as a result. However,
these concessions vary from state-to-state and the onus is very much on our sector
to push its case with the individual states.
The NFF believes that a national heavy vehicle system should have the capability
to factor in a uniform national primary producer concession that acknowledges the
low on-road usage by primary producers. Furthermore, such an inclusion would
ensure equity between state jurisdictions which is currently lacking.
2.2.4 COMMON SENSE
Severe frustrations are felt by farmers when regulations impose unnecessary costs
on the way in which they do business. Too rarely is it recognised that a one-sizefits-all approach is not an appropriate basis in which to regulate. Flexibility is
often needed to account for the multitude of circumstances and hugely varied
scenarios faced by the farm sector.
We urge a national approach to be premised on a flexible approach.
One example of inflexibility can be found when a farmer manages separate
properties that are split by a public road. It is difficult to understand why the
farmer requires a permit each time they transport their unregistered header
between properties. Currently, the NFF believes that there is no flexibility in the
system to ensure that common sense prevails in such circumstances. A similar
example exists with the restriction of moving farm machinery at night, despite
new technologies meaning that many farmers are increasingly working during
night hours.
4
NTC 2007 Heavy Vehicle Determination Draft RIS July 2007
13
National Farmers’ Federation Submission –
Regulatory Impact Statement for the National Framework for Regulation, Registration and Licensing
of Heavy Vehicles
Regulations must be flexible enough to take into account the advent of new
technologies that are changing the way in which farmers undertake their business.
14
National Farmers’ Federation Submission –
Regulatory Impact Statement for the National Framework for Regulation, Registration and Licensing
of Heavy Vehicles
3. CONCLUSION
The NFF recognises that the through-chain costs of regulation are difficult to
quantify as they are often integrated within farmers’ day-to-day operations. We
also understand that many regulations deliver significant value and clarity to
Australian farm businesses when delivered in a reasonable and flexible way that
effectively demonstrates the benefits provided.
However, regulatory burdens are having an increasing impact on Australian farm
businesses and immediate steps must be taken to ensure that our international
competitiveness does not suffer as a result. Areas such as inconsistencies between
various government jurisdictions and departments, streamlining reporting
requirements and providing effective education about the benefits can generate
demonstrable gains and must be immediately addressed.
The productivity gains achieved by removing these inconsistencies will allow
Australian farmers to compete against other nations who have significantly lower
input costs or who benefit from government subsidies and trade barriers.
15
National Farmers’ Federation Submission –
Regulatory Impact Statement for the National Framework for Regulation, Registration and Licensing
of Heavy Vehicles