07/21/2008 Today's Trucking.com OTTAWA -- A Senate committee on
transportation is recommending that the federal government approve
several crucial trucking initiatives urged on by the industry. The report -- titled Time for a New National Vision – Opportunities and Constraints for Canada in the Global Movement of Goods -- The
Committee heard evidence that it is "almost impossible to earn a living
in the trucking industry while playing by the rules, because truckers
will work under the table and not respect regulations in order to work." "For example, the federal government has
not supported the adoption of the newer, more productive technologies
through tax credits or accelerated depreciation," notes the report. And
although there's the perception that the federal government was to
shift freight away from trucks and onto trains and waterways, only
about 10 percent of freight traffic could easily be carried by rail as
by truck.
recommends that Ottawa support the adoption of new environmental technologies as demanded the trucking industry through tax incentives and accelerated depreciation.
It also suggests that Citizenship and Immigration Canada classify long-distance truck drivers as skilled labor to allow more foreign workers to take advantage of immigration policy. Plus, the Canadian Council of Motor Transport Administrators (CCMTA) should harmonize trucking regulations across the country, the reports states.
In spite of trucking services being essential to the movement of goods,
the Committee was told that federal policy has had a negative impact on
the trucking industry.
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| BC carriers told the committee that industry should establish rates based on the market, rather than government intervention. |
Furthermore,
a lack of harmonization among provincial regulations have reduced labor
productivity in trucking. The country should have uniform policies on
size and weight rules, double trailer trucks (LCVs), and special equipment permits like single wide-base tires.
"One witness suggested that harmonization of the regulatory regime in
Canada could make truck drivers’ work less complicated, while another
told the Committee that if driver efficiency were improved, the labor
shortage might not be so serious." The Committee also took a
look at the container transport sector, mainly on the west coast, where
drayage carriers appear to be threatened by factors affecting the labor
force and productivity. Trucking officials recounted the
situation at the Port of Vancouver in 2005, in which thousands of
independent container haulers went on strike to protest fuel prices and
rates. The government ended the conflict by
forcing drayage companies to acquire a port licensing system, which
among other things, imposed minimum rates for container truck services. But
more importantly, the marketplace should establish compensation rates
for container trucking and the trucking officials made it clear they do not approve of the way in which industry participants were driven to the licensing regime. Meanwhile, the Committee also recommended that the government take action to address problems in the rail industry. It
suggests that Transport Canada should adjust the capital cost allowance
to encourage railroads to accelerate investment in new equipment. As
well, the government needs to consider remedies that deal with the lack
of availability of rail container equipment; the lower level of service
and higher freight rates to "captive" shippers; the lack of
consultation between the railroads, shippers and ports regarding
service delays; and the lack of accountability on the part of the
railways in dealing with shippers and ports regarding these issues.
If a similar dispute should arise again, the Committee was told,
federal and provincial governments should "exercise swift, certain and
severe enforcement of the law to prevent a service disruption."
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