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Congestion forcing businesses to change operations

Announcement posted by NRMA Motoring & Services 02 Apr 2012

One in two businesses in Sydney surveyed in the NRMA’s annual BusinessWise Congestion survey are making changes to the way they operate because of increasing traffic congestion.
The NRMA BusinessWise survey of almost 600 businesses found almost 50 per cent of those in metropolitan Sydney had made changes to the way their business operates to address the effects of worsening congestion - up 15 per cent on last year's survey.

The BusinessWise survey was conducted largely of small businesses. Almost 35 per cent had less than five employees and almost one-quarter employed between six and 10 staff. Almost 10 per cent (7.9%) employed more than 100 people.

Almost two-thirds (59%) changed the start and finish times of their employees, while one third (33%) extended delivery times to ensure they could meet deadlines.

Forty per cent of businesses also said congestion had resulted in staff getting to work late and had also reduced the ability of businesses to deliver goods on time.

NRMA BusinessWise provides roadside assistance and motoring support to over 21,000 fleets running businesses in NSW and the ACT.

The BusinessWise survey also found almost half (47.5%) reported increased operation costs of up to $5000 - up nearly 20% on last year's survey. Over two-thirds (66%) said congestion had also resulted in increased fuel use because their fleet vehicles were stuck in traffic longer.

The survey also found that 20 per cent of businesses had passed on the increasing costs that resulted from congestion to their customers.

Of those businesses surveyed almost 70 per cent (67%) remain opposed to a congestion charge on motorists designed to discourage people from driving during peak times.

The NRMA Businesswise congestion survey also found:

88 per cent said traffic congestion had increased
85 per cent of businesses want the Government to reduce the cost of motoring
59 per cent said roads had gotten worse

NRMA President Wendy Machin said congestion in Sydney was bad for business.

"As congestion continues to get worse in Sydney it's no surprise that it's now starting to have a greater effect on an increasing number of businesses," said Ms Machin.

"In recent times small businesses have had to make some very tough decisions about how they operate and when they make deliveries; they're also using more fuel than ever before because of the delays in getting in and around the CBD centre."

The NRMA BusinessWise survey found businesses wanted the Government to make the duplication of the M5 Tunnel (50%) and the completion of the M4 motorway to the CBD (48%) as the major infrastructure priorities.

"Sydney businesses cannot continue to operate under these conditions," Ms Machin said.

"Given the importance of roads to the state's economy, it's time that we build Sydney's missing links to take pressure off the existing road network and make it easier for small businesses to get around."

"The NRMA also outlined a series of low cost steps through our Decongestion Strategy that are yet to be implemented that could significantly reduce unnecessary traffic delays in Sydney."

They include:

Development of a motorway management team designed to pro-actively manage delays on a daily basis
Review parking restrictions on major roads
Increase the amount of reliable and up to date information across Sydney's major motorways through the use of variable messaging systems, a dedicated traffic radio network and email and or SMS alerts.

NRMA BusinessWise Members would also like to see the Government address increasing fuel costs (69%), tolls (63%) and green slip costs (59%).

Read the NRMA Decongestion Strategy (PDF 3MB/40 pages).