Rising fuel costs linked to the ongoing conflict in Iran are creating significant hardship for businesses in the East Coast/Tairāwhiti region of New Zealand, with some owners questioning the Government’s approach to providing relief.
Businesses Experience Left Behind
Finance Minister Nicola Willis recently announced tax credit relief for 140,000 families with children, a move that prompted frustration from business owners like Callum Bircher of Dash Transport in Gisborne. Bircher reported his phone “ran hot” with calls from other business owners who believe support should have been directed towards the supply chain, as it was during the Covid-19 pandemic. They argue that supporting the supply chain would both keep businesses afloat and prevent increased costs from being passed on to consumers.
Bircher’s company delivers essential materials to roading projects, covering approximately 500 kilometers daily. He fears further cuts to his fleet would mean the end of his business. Diesel costs have doubled since February, adding to the strain.
Rising Theft and Economic Concerns
The increased financial pressure is also leading to a rise in fuel theft. Companies Bircher works with have reported trucks being targeted, and farmers have experienced similar thefts from their harvesters. He now prioritizes parking trucks in secure locations overnight.
Further up the coast in Ruatoria, Bobbi Morice, owner of Ruatoria Pies, expressed feeling “deflated” by the Government’s response, particularly given the region’s existing challenges with extreme weather events. Morice has already lost four customers and worries about further cancellations as costs increase. She noted that the price of mince and power have also risen, forcing her to consider raising prices and potentially losing regular customers.
Morice also questioned the practicality of Finance Minister Willis’ suggestion that businesses seek bank loans, stating that businesses in isolated coastal areas with a history of hardship are often seen as “high risk” by lenders.
Long-Term Impacts
Richard Burke, a consultant to agri-businesses in the region, described the fuel crisis as a “detonator” that could force growers to reconsider the viability of their crops. He anticipates increased costs for fertilizer and expressed concern about a lack of investment in the Tairāwhiti region due to poor road conditions. Burke believes that a focus on creating a business-friendly environment, particularly within the primary sector, is crucial for the region’s long-term survival.
Frequently Asked Questions
What is causing the fuel price increases?
The rising fuel prices are linked to the ongoing war in Iran.
What relief has the Government announced?
Finance Minister Nicola Willis announced tax credit relief for 140,000 families with children.
What are businesses in the East Coast/Tairāwhiti region experiencing?
Businesses are grappling with doubled diesel costs, increased fuel theft, and concerns about potential layoffs and project delays.
How will businesses in the region adapt to these ongoing economic pressures?
