Hauliers consider setting up `serious' blockades

The Irish Road Haulage Association (IRHA) is considering "serious continental-style" blockades, following yesterday's action …

The Irish Road Haulage Association (IRHA) is considering "serious continental-style" blockades, following yesterday's action which saw truck convoys circle major cities and towns.

Disruption was not as severe as predicted in most areas but the Small Firms' Association estimated that the protests cost businesses between £18 million and £20 million. Its chief executive, Mr Pat Delaney, said losses in Dublin were about £6 million, with the retail sector most affected because many people stayed out of cities.

The IRHA has warned of more disruptive actions. Its president, Mr Gerry McMahon, said the protests were "only a flexing of muscle" and could grow into "more serious continental-style" blockades if the Government continued to refuse to reduce the price of diesel before the December Budget.

He said a possible interim solution would be an agreement by industry to pay a 10 per cent surcharge on haulage fees immediately.

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However, the Competition Authority has contacted the IRHA about press reports of the 10 per cent surcharge. Its director of competition enforcement, Dr John Fingleton, was not available for comment. In 1998 the authority got a High Court order in which the IRHA agreed not to engage in anything which would amount to price fixing.

The Taoiseach, Mr Ahern, warned again yesterday of the dangers of an inflationary cycle. The Government's position on the hauliers' demands remained the same - that the social partnership provided a framework to make submissions for improvements in the Budget.

Mr Ahern has assured Mr McMahon that the hauliers' concerns will be taken into account in the pre-Budget negotiations over the next six weeks. It is understood the Government has offered the hauliers a special meeting at Government Buildings next week to discuss non-monetary issues.

Some 1,500 trucks took part in yesterday's protests which focused on major cities and towns. Mr McMahon said the protest was an "unqualified success", although most routes remained open and parts of Dublin were less congested due to the protest.

Waterford was badly affected as trucks converged on the single-bridge crossing of the River Suir. Long delays also ensued at Rosslare port, while Limerick suffered major tailbacks into Co Clare when truck convoys concentrated on the Raheen and Castletroy roundabouts on the outskirts of the city.

In Dublin the worst-affected areas were at the Red Cow roundabout on the M50 and the port. However, within the M50 traffic was light and the absence of trucks in the city centre until late afternoon meant traffic volumes were lighter than normal for a Friday.

Many businesses were prepared for the day of action and either started work much earlier or changed their transportation schedules. Commuters from Dublin suburbs generally experienced little difficulty.

A quarter of the UK's 13,000 filling stations were restocked with fuel by last night but oil companies predicted it would be another two weeks before supplies would be back to normal.

The British Institute of Directors warned that the dispute would cost businesses £1 billion by the time fuel deliveries returned to normal.

Petrol deliveries also resumed in Belgium yesterday, while a wave of wildcat blockades cut many of Holland's key motorways, producing long tailbacks.

The Belgian agreement includes a reduction in road tax, cuts in social insurance, and a tax breathing space for companies in difficulty. It does not include any cut in fuel costs because of strong resistance from Green members of the government.

Meanwhile, the price of crude oil hit a 10-year high on markets yesterday.