Govt supply chain paper met with cynicism from industry

A new Government discussion paper on freight and supply chain issues is “more waffle and wasteful consultation” and it’s doubtful the advice of business will be listened to anyway, says Mainfreight managing director Don Braid.

“Another discussion paper. Oh my goodness, how many do we need? Will the Government listen and act on advice from the business sector?

“We would be doubtful after the many examples during the Covid crisis and the more recent example around commercial diesel pricing/ road user charges solutions proffered by the industry and totally ignored by government officials, including the minister,” said Braid.

“This is more waffle and wasteful consultation and likely less action.

Think of [all] the port reviews over the past 10 years.”

Braid said future-proofing supply chains was more a matter for the global sector and its participants to consider and resolve, than a government to fix.

“Allow the market to sort it out, other than investing in good transport infrastructure resources like rail and satisfactory roading infrastructure.”

Braid isn’t the only sector player to question the merits of the discussion paper, intended as a prelude to a freight and supply chain strategy, which the Ministry of Transport hopes will prepare the system “to face substantial challenges, including decarbonisation”.

However, the New Zealand Shipping Federation was “delighted” the paper recognised the importance of developing coastal shipping to reduce freight carbon emissions.

Customs Brokers and Freight Forwarders’ Federation (CBFFF) president Chris Edwards said while he was pleased to see many of the operational and policy issues for “those of us on the ground” recognised, the paper made decarbonisation a primary focus when there were more pressing problems.

“The paper does not offer solutions but to be fair, nor does it set out to, yet, either. I note the driving ideology in many discussion papers is decarbonisation of the supply chain and emissions in general.

“Indeed it ranks as the No 1 issue in this paper. However I suspect if you interviewed most in the supply chain at the moment this would not be amongst the top three issues we are facing now.

“There are far more pressing needs around competition, reliability of services, labour and certainty of supply that need to rank at least as highly.”

Edwards said it was good the Government recognised vertical integration in shipping consortiums would likely lead to less choice for NZ Inc.

Also good was the suggestion of Government investment in the supply chain — however “not specifically in the freight area where the biggest issues are”.

But Transport NZ chief executive Nick Leggett wasn’t a fan of some of the suggestions in the paper.

“We are concerned that the Government may wish to involve itself as a director of the supply chain, rather than just as the regulator. We believe this would be a mistake, given the fluidity and global forces that are at work in ensuring the successful and efficient movement of goods.

“Every actor in the chain does what is required to ensure the chain works and while clearly there have been global challenges, our Government would be far better to listen to concerns and observe challenges here around regulation or a lack of infrastructure, rather than seeing itself as a player.

“No good will come of such intervention.”

Leggett said it was positive the Government was taking time to inform itself of how the supply chain works and its challenges.

CBFFF’S Edwards said he would have liked to see discussion in the paper around an Australasian-owned shipping line “that better serves the needs of New Zealand and Australia”.

Submissions on the paper close on June 3.