On 28 February 2011, the National Transport Commission released for public consultation a package of draft model national heavy vehicle laws and Regulatory Impact Statement (RIS) to support the National Heavy Vehicle Regulator (NHVR) which will commence by January 2013, as agreed by the Council of Australian Governments.
The package offers a glimpse of the road ahead for our industry under uniform national laws overseen by a single national regulator – many other industries would be most envious.
The model laws apply to vehicles over 4.5 tonnes in areas including registration, charges, vehicle standards, mass, loading, compliance, enforcement and safety.
The RIS estimates that, if passed by State and Territory Governments unchanged, the model laws have the potential to deliver gains of $12.4 billion over 20 years in net present value terms.
Big numbers, but these are big changes.
The modern reality is that road transport is a borderless industry burdened by multiple layers of Federal, State, Territory and local regulation. With the freight task growing by more than 7% each year, it is imperative that we are able to increase the safety and productivity of our existing fleet and infrastructure.
NatRoad has been a strong advocate for the establishment of a single national regulatory system, releasing a policy on the preferred structure and operation of the NHVR in December 2010.
Overall, the RIS paints a picture of a more efficient and productive industry with many significant improvements proposed under the new regulatory system.
For instance, there will be a single national registration system with mutual recognition across jurisdictions of vehicle inspections and a uniform process for transferring registration between parties.
Fees charged for administrative tasks including issuing permits or exemptions will be determined, reviewed and published by the NHVR applying cost-recovery principles.
Drivers will no longer need to carry class 1 notices (but will however still be required to carry class 1 permits).
The NHVR will be the single issuer of notices and permits as well as the single registrar of industry codes of practice. Access permits can be obtained by any individual, allowing similar vehicles to be interchanged without a new permit being sought.
The requirement for spray suppression on B-doubles is likely to be removed and the treatment of special purpose vehicles, including agricultural vehicles, will be more uniform. Requirements for drivers of pilot and escort vehicles will be mutually recognised with a view to eventual standardisation.
The powers of enforcement officers to pursue or direct vehicles will also be more consistent. For the first time, there will be timeframes for the return of items seized during investigations and alternative options for financial compensation if items are damaged due to inappropriate action.
However, as with all major initiatives of this type there are also risks involved.
The RIS estimates that more than half of the net benefit of uniform regulation will be generated through improved access arrangements ($7.0 billion), with the bulk of this benefit accrued by industry as a productivity dividend ($5.7 billion).
Under the proposal, the NHVR will be a one-stop-shop for all access applications. In practice, operators will make a single application to the NHVR for an entire route. The NHVR will liaise with each individual jurisdiction concerned (State and Local Governments) before making a final determination.
The NHVR will be the sole decision-maker on safety assessments and will develop guidelines and assessment tools to assist the jurisdictions to make consistent decisions on matters relating to infrastructure and public amenity. However, the guidelines will not be binding.
Reasons will be given to applicants for all decisions and the NHVR will monitor and record the results of access applications which will help identify areas in which access is being requested, but is not being granted. Decisions made by the jurisdictions will be open to internal review and final decisions of the NHVR will be open to both internal and independent external review.
While operators will no doubt prefer a one-stop-shop model, it remains uncertain whether or not such a system will actually deliver improved access outcomes. Unless the regulator is able to resolve applications quickly and effectively scrutinise the decisions of the jurisdictional authorities, there is a real risk that the NHVR will simply become another layer of bureaucracy without delivering on the promise of improved productivity.
The RIS proposes to completely revamp the current Advanced Fatigue Management (AFM) system.
There have been just 21 approvals since the AFM system was introduced in 2008. It is slow, expensive and has a high rejection rate. Clearly, the current system is not working as intended and change is urgently required.
Opening up the AFM system to change carries an inherent risk that outer limits will be reduced or that unworkable risk management strategies will be included. As an industry we want and need practical changes that increase approval rates, decrease costs and allow us to manage our people safety while improving productivity.
The RIS estimates that an improved system for Higher Mass Limits (HML) will deliver a net benefit of $1.75 billion. In the past, jurisdictions have deviated from the model laws on the basis of concerns about fragile infrastructure and estimated productivity benefits have not been realised. Unfortunately, this situation appears likely to continue with extensive consultation failing to produce nation-wide consensus on the parameters of HML.
I have to say, I find it difficult to accept the RIS’s estimate of net benefits under a system in which the current regime will effectively continue to apply.
Change can be a difficult but worthwhile process. Often, there is broad agreement that change is required, provided that it is done ‘my way’. Given the plethora of Federal, State, Territory and local jurisdictions involved and the various interests of different sectors of the road transport industry, it is inevitable that compromises will need to be made.
While NatRoad will seek changes in some areas and will not agree to a system that increases the regulatory burden, as an industry we must not lose sight of the benefits that national regulation will bring – even if that means adapting to changes that may seem unnecessary or having to give up some minor concessions that perhaps can’t be accepted nationally.
The public consultation process concludes on 6 May 2011. NatRoad is discussing the issue with our members and will make a comprehensive submission on behalf of road transport operators. Now is the time for each of us to have our say on the future of our industry.
Rob McIntosh
President