Freight price hike warning

A multinational freight company is asking customers to not shoot the messenger if a fuel tax pushes up postage prices.

The Government proposed a nationwide fuel tax of 9 cents to 12c per litre on Tuesday.

The money collected would be spent on rapid rail and projects aimed at improving road safety.

Freightways chief executive Mark Troughear said New Zealanders’ wallets would not just be taking a hit at the pump if a fuel tax was introduced. ‘‘They are going to pay a little bit more for every package that they send.’’

Freightways owns New Zealand Couriers, Post Haste Couriers, and Now Couriers.

A 10c tax would rise its post prices by 1 per cent, Troughear said. That would hike the average $7 price of a parcel to $7.07.

Freightways had a fuel surcharge pricing mechanism that would automatically pass the extra cost onto customers.

‘‘I do not think they [customers] look at us like the bad guy for it. We are sort of the messenger – don’t shoot the messenger.’’

But Troughear felt the Government should spend the money it collected on roading infrastructure, not rail. ‘‘We see a real need for better roading infrastructure and clearly a bit of money spent on public transport as well.’’

AA motoring general manager Mike Noon said the extra tax would be added to the fuel excise tax at the pump, where motorists were already taxed 66c a litre.

Most of that went to the National Land Transport Fund, and the remainder went to local authorities and ACC. Goods and services tax was then added on top.

Those taxes had increased under every previous government, Noon said.