Trucks keep the economy moving. There’s a clear and direct relationship between economic growth and trucking activity. New Zealand research shows that a 1% growth in national output requires around a 1.4% increase in transport services.

Research for the Road Transport Forum in 2006 estimated that the total amount of freight to be moved in New Zealand could double between 2005 and 2020. Although quite a high percentage of New Zealand freight, compared to countries like Britain, currently travels by rail, the research proved that at the very most 20% of this additional freight could go by train. Trucks will be needed to keep the country growing.

Because of the vital role trucks play, changes in road transport charges have a direct impact on New Zealand’s economic performance. A 2002 study by Infometrics found that a 10% reduction in road transport freight rates would:

• Create 33,000 new jobs
• Increase GDP by 3.7%
• Boost exports by 3.9% or more than $1.5 billion

A 10% increase in road freight rates would:

• Cut 20,000 full time jobs
• Reduce GDP by 1.6%
• Cut exports by 1.7%

Road transport is particularly important to regional New Zealand and the export industries which drive these local economies. Trucks carry:

• 95% of export fruit
• 86% of export wool
• 85% of export dairy products
• 65% of export logs
• 35% of export meat

Collectively these exports are worth nearly $21 billion a year in overseas earnings.

Road transport’s significance for regional communities has been highlighted in two further reports by Infometrics. A 2003 study found that higher transport charges would cut primary sector incomes and increase the cost of consumer goods in the regions. In the short term household and business incomes and in the medium term businesses could be forced to relocate closer to major centres of economic activity. Infometrics also said that transport is a critical issue in attracting new investment into some regions.

The 2007 Infometrics study showed that for every increase in transport costs that increased the cost of living by $1 in Auckland, the same cost increases would have a multiplier effect on regional costs of living. Generally the further the distance goods have to travel the greater the impact. On the North Island East Coast and in Nelson and Marlborough the cost of living would rise by $2 for every $1 increase in Auckland. In Taranaki, Otago and Gisborne a $1 cost of living increase in Auckland would translate into a $3 cost of living rise. Southlanders would pay $5.50 more.