BIC Annual Report 2004/2005
The past 12 months has been extremely busy for the Bus Industry Confederation. We have now been in Canberra for just over three years and we are beginning to see some progress with government taking a greater interest in bus and coach industry issues and gaining an understanding of our concerns.
There has been a definite change in the language of the Federal Government which initially was very clear in its view that the Federal Government had no role in public transport.
This dynamic has changed slowly, but the Federal Government now realises that it cannot just focus on freight but needs to take a holistic approach to transport which includes passenger transport
The Federal Government should not be involved in the delivery of public transport services. But at the same time the Federal Government has said at various times that it does see a strategic role in how we move people.
Progress with the BIC strategy to see a public transport culture developed for Australia has been slow but we need to remember that any progress is a bonus and our strategy of moving to Canberra has meant we can consistently and persistently engage the Federal Government to take our issues more seriously.
I would have to say that over the past 12 months our presence has been recognised, some key issues have been addressed and our lobbying efforts are beginning to deliver success.
The Federal Election
The past 12 months has seen the Howard Government returned to office and for a period, John Anderson retained the Minister for Transport & Regional Services portfolio.
In July 2005 Mr Anderson decided to resign and a new Minister for Transport & Regional Services Mr Warren Truss was announced. Warren Truss was also appointed as Deputy Leader of the National Party.
The new Leader of the National Party, Mr Mark Vaile was previously a Minister for Transport & Regional Services and someone that the BIC has already developed a strong working relationship with.
It is hoped that the new Minister, Mr Truss, will take a more active role in the transport portfolio, particularly as he will not have the Deputy Prime Minister portfolio. Only time will tell – but BIC will be in there pursuing your industry’s interests.
Key Issues – 2004/05
Taxation – Effective Life Depreciation
The past 12 months has seen a strong focus on tax issues with the industry achieving a significant win in relation to the depreciation of business assets.
The Australian Tax Office recommended that the depreciation rate for buses and coaches be changed from the existing 62/3 years to 20 years. This led to a strong and concerted campaign by the industry at state and national level.
As a result of our campaign, the Federal Government decided that rather than introducing an effective life depreciate rate of 20 years for buses, that this would be capped at 7.5 years to promote the uptake of new technology and assist industry to meet DDA requirements and new emission standards. It is important to note that of all Australian industries the bus and coach industry were only the third to receive such a concession.
In my view this highlights the real value of having a presence in Canberra. It saved our supplier members from having their market significantly reduced and our operator members from having to drastically reduce their fleet replacement programs.
Taxation – Fuel Tax Credits Scheme
An issue that the BIC has taken on board since getting to Canberra has been the extension of the existing On-Road Diesel Grant of 18 cents per litre of fuel used. This is currently rebated to regionally based bus and coach operators but should be available to urban based operators as well.
During 2004/05, the BIC was able to achieve this and see the Howard Government announce that from 1 July 2006, a new Fuel Tax Credit Scheme would be introduced that will allow all operators to be eligible to receive the fuel rebate if they meet one of several key eligibility criteria.
Regulation – The NTC and APTG
The past 12 months has seen a much closer relationship develop between the National Transport Commission (NTC) and the Australian Passenger Transport Modal Group (APTG) and BIC.
These two bodies are the key drivers for industry regulatory reform and the BIC has taken a proactive approach to encourage them to address key industry issues.
Both bodies are important for the future of our industry as they provide the opportunity to lead the policy debate at a national and state level.
Fatigue and Driving Hours
Bus driving hours has been an issue for many years. BIC has obtained agreement from the National Transport Commission that a specific bus driving hours package will be developed and that we will not be forced to take up the trucking industry’s driving hours package. This work is currently underway and should be completed by end 2005.
Mass and Dimension
The BIC continues to push to have mass and dimensions aligned with European standards. This will allow two axle vehicles manufactured for 18 tonne to operate at 18 tonne.
Whilst progress with this issue has been slow and state regulatory authorities very reticent to move on this issue, the past 12 months has seen some states considering moving to 18 tonne gross vehicle mass. The BIC also recently met with the National Transport Commission Chairman, Commissioners and Chief Executive Officers to hold strategic discussions on the future work program and it was agreed that the NTC would revisit the whole mass and dimension issues as they relate to buses and include this as part of their strategic work program for 2006/07.
Accreditation
Accreditation has been another key focus for the BIC over the past 12 months.
The BIC has held the view for some time that a national set of core industry standards needs to be mutually agreed by each of the state jurisdictions to form the base of a national accreditation regime.
A national accreditation regime should still be managed and run by each of the state jurisdictions and not form part of the National Heavy Vehicle Accreditation Scheme (NHVAS). In this way individual states can still adapt accreditation arrangements to suit specific state circumstances and at the same time mutually recognise accredited operators from other states. Accreditation is high on the agenda of the National Transport Commission and the Passenger Transport Modal Group and we hope to see real progress made on this issue.
Environment
The BIC continues to play an active role in the environmental area and continue its participation in the Greenhouse Plus Program. The BIC was recognised by the Minister for Environment earlier in 2005 and presented with a plaque for our continued participation in this important industry program.
The BIC has been a proponent of seeking a delay in the introduction of Euro 4 and Euro 5 emission standards.
This delay was sought as a mechanism to allow greater time for industry and government to address the issues of urea infrastructure and for government to determine how it would best manage the compliance framework that is required to ensure the use of urea in SCR engines.
The delay will see euro 4 emission standards now introduced for new models on 1 January 2007 and all models on 1 January 2008.
Technical
The BIC this year formalised the BIC Technical Sub Committee made up of engineers and technical experts from major suppliers. It provides expert advice on key technical issues with a view to developing policy positions that can be picked up by State Associations.
This has included the re-publication of the seatbelt retrofit guide. This is an updated version of the guide produced in the 1990’s and puts down in black and white what can and cannot be done in relation to seatbelt retrofitting.
The BIC has also been heavily involved with the compliance and certification process for all new vehicles or what is known as the Sub Assembly Registration Number (SARN).
The BIC has been actively working with DOTARS to streamline this process and it is intended by the end of 2005 that the compliance and certification process will be much improved.
Security
The issue of security on passenger transport services has been top of mind for the past few years following September 11 and Bali bombings and more recently the bombings that have occurred in Madrid and London.
The Bus Industry Confederation, in March 2004, released the Bus and Coach Operators Incident Management Guidelines which includes a comprehensive overview of how to manage security and risk management.
The BIC took a leadership role with DOTARS in pulling this information together and distributing the documentation to operators as a tool to assist operators.
BIC on the Road
The BIC, as part of its overall work program in 2004/05, has met State Associations, Ministers for Transport and Shadow Ministers for Transport in each state.
This is part of the process of generating industry unity and strength whilst also providing support in the context of each of the states policy direction.
The past year has been extremely successful with both the Tasmanian and the South Australian Associations releasing their own state-based policy statements largely designed around the Bus Industry Confederation’s National Policy Statement released in 2001.
BIC is currently undertaking a review of its National Policy Statement and aims to launch a revised Policy Statement at the BIC National Conference to be held in October 2005.
National Conference
In 2004 the BIC in partnership with the UITP held an international conference in parallel with the BIC National Conference.
The event saw a large variety of international speakers and topics discussed with over 800 people in attendance and provided delegates with an interesting insight into what is going on in the rest of the world and what might be useful for Australia to consider.
In 2005 the Conference will return to its normal format and be held on Hamilton Island from October 16-19. I hope to see you there.
All in all 2004/05 was another year of growth for the BIC and in my view, increased influence in Canberra. I thank you for your ongoing support and look forward to your continued interest in the coming year.
Michael Apps