A major family-owned trucking company, Ron Crouch Transport, has entered voluntary administration, with the owner hitting out at “sham contracting” and blaming the Labor government for the collapse.
Geoff Crouch, who runs the Wagga Wagga-based company started by parents Ronald and Beverley Crouch, announced this week that a voluntary administrator had been brought in, and apologised for the effects on his 120 employees.
“Whilst I love and have a passion for the Australian transport industry, as we all know it is a tough one that takes no prisoners,” he said.
“Challenging economic conditions, pressure on rates, driver shortage, the never-ending burden of government overregulation, all have played their part. Ultimate responsibility, of course though is mine.”
He also said that sham contracting – where companies hire truck drivers on individual ABNs, even though they don’t own and operate their own vehicle, in order to avoid paying employee entitlements – has devastated the industry.
“Sham contracting for drivers, by using an ABN, is a curse on the industry and the federal government needs to pull its head out of its arse and do something about it,” Mr Crouch told Big Rigs.
The announcement sparked an outpouring of support for the company, including from Nationals MP and former deputy prime minister Michael McCormack, who said it was a sign the transport industry was in trouble.
“Without trucks, Australia stops. They are the lifeblood of regional Australia,” he said.
“Despite this, the trucking industry is being constrained by the conditions set by this Labor Government including the road infrastructure cutbacks, fuel prices and the truckies’ tax.
“The Federal Government has placed unnecessary burdens on the trucking industry, making it harder for the sustainability and success of this vital industry. When you have family-owned and operated companies that have been operating for generations going to the wall, something has to change.”
Mr Crouch said in his statement that he hoped a buyer could be found, but that in the meantime the company was operating as usual.
Header image: Left, Geoff Crouch (LinkedIn). Right, one of his company’s trucks (Ron Crouch Transport).
