Northland听businesses will have to decide whether to pass extra transport costs associated with the upcoming Brynderwyns closure on to customers or 鈥渢ake them on the chin鈥.听
The Northland Chamber of Commerce has also warned New Zealand Transport Agency Waka Kotahi (NZTA) the closure could have an 鈥渋nflationary effect鈥 on the region鈥檚 economy.听
With just 26 days before the vital stretch of听SH1 shuts in both directions for nine weeks, owners of small to medium-sized businesses are bracing themselves to 鈥渨ear鈥 likely price hikes along with frustrating delivery听delays as truckies are forced to take lengthy detours.听
FreshChoice Ruak膩k膩 owner Grant Egan said transport companies will 鈥渉ave to pass costs on鈥.听
鈥淭here鈥檚 no way they can wear the听extra transport costs and wages.听
鈥淭hey鈥檙e travelling an extra hour a day, and that鈥檚 an extra hour of wages and diesel, and eventually it鈥檒l be passed on to us.听
鈥淲e won鈥檛 be passing on those extra costs to customers ... we鈥檒l wear those ourselves.听
鈥淲e鈥檒l take it on the chin.鈥听
Egan said transport costs were also passed on to his supermarket business last February, when听Cyclone Gabrielle caused numerous slips,听closing the Brynderwyns either fully or partially right up until mid-April.听
The upcoming work, from February 26 to sometime in May, is to fix more slips and weak areas following that storm damage to get the road back to how it was before the weather events.听
Egan said the frequent closures also impacted staffing.听
鈥淲e have to be careful of the number of staff we employ and how much work we give them.鈥听
And while Egan said he won鈥檛 reduce staff hours, 鈥渨e prepare for it鈥.听
Small business owner Karam Gill gets most of the store's goods delivered from Auckland. Photo / Jenny Ling听
鈥淲e鈥檙e coming out of the Christmas period, where we鈥檝e employed lots of students and they鈥檙e going back to school.听
鈥淲e鈥檒l be careful about replacing them, because when the Brynderwyns close, we鈥檒l get remarkably quiet.听
鈥淲e鈥檒l be holding off on employing more people until we find out the real impact of it.鈥听
NZTA is to close the Brynderwyns from February 26 until March 27. SH1 will then reopen for six days over the Easter period before closing again on April 3 until May.听
While cars can detour through Mangawhai and Waipu, adding around 30 minutes, freight is likely to be directed through Paparoa Oakleigh Rd, with heavy freight having to drive through Dargaville on SH12 and SH14.听
National Road Carriers transport specialist Paula Rogers has previously said the detour routes added an extra two to three hours to drivers鈥 trips.听
That could result in a minimum 10 to 15 per cent cost passed on to consumers at a time when prices are already high, she said.听
One truck driver has already warned听every truckload coming into Northland will have an extra $200 added听on to it.听
Northland Chamber of Commerce president Tim Robinson said the issue had been flagged to NZTA as part of ongoing consultation on the road closure.听
The chamber had asked the government agency if funds were available to compensate businesses, but it had said no.听
Northland Chamber of Commerce president Tim Robinson said it was up to businesses to decide whether to pass on increased transport costs or absorb them. Photo / Michael Cunningham听
Therefore, it was up to businesses to decide whether to pass on those costs or absorb them, he said.听
鈥淪ome businesses will choose to pass those increased costs through.听
鈥淚t鈥檚 a decision business owners make on a daily basis: 鈥業f costs rise, is there a way to recoup those, or do I absorb them?鈥听
鈥淲e鈥檙e already in a cost of living crisis - to then turn around and add more costs and expect them to absorb it, that to us was patently unfair.听
鈥淥ur advice to NZTA was to brace themselves. There could be an inflationary effect of this unless the agencies responsible assist with the increased costs.鈥听
Karam Gill, who owns JVR Pricecutter Store in Kawakawa, said if transport prices increase, 鈥渋t will affect my business鈥, as most of her deliveries come from Auckland.听
鈥淲e have to put the burden on the customers.听
鈥淪ome we will absorb ourselves, depending on how much they are charging. If they鈥檙e minor, we will ignore it, but if it鈥檚 huge, it will make a difference.鈥听
Four Square Kawakawa manager Priyanka Bhikha said she wasn鈥檛 looking forward to delayed deliveries.听
鈥淸There are] going to be later deliveries, which is frustrating for us because we already have to wait around. It鈥檚 going to be late deliveries for nine weeks.听
鈥淲hat can we do? We can鈥檛 do much about the situation.鈥听
NZTA is to close the Brynderwyns for nine weeks from February 26. Photo / Michael Cunningham听
As for price increases, the store wouldn鈥檛 be putting up prices because 鈥渙ur prices come from Foodstuffs, we have to go with that鈥.听
鈥淲e鈥檒l still have our locals. We service the community, and they鈥檒l keep shopping here,鈥 Bhikha said.听
Egan said he hoped the next lot of work to the Brynderwyns 鈥渨ill be the end of it鈥.听
鈥淚f there鈥檚 another weather event after the work is done, it鈥檒l possibly close again. Obviously, we鈥檇 want to avoid that.听
鈥淭he solution is a听four-lane highway from Auckland to Whang膩rei听- but that鈥檚 not going to happen in my lifetime.鈥听
Jenny Ling is a news reporter and features writer for the听Northern Advocate. She has a special interest in covering roading, lifestyle, business, and animal welfare issues.听
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