The contractor sells the cars away – and regrets that he voted Sp and Vedum – news Troms and Finnmark

While the Truck Owners’ Association fears bankruptcy, Magne Persen takes action to secure his company. – I have sold one car, and I now sell one car. I sat and rained yesterday. It is not possible to do much of what we do, says Persen, who is the general manager of Bjørnevatn Maskin in Sør-Varanger. The company is engaged in excavation, transport and clearing. Now, long-distance driving has become too expensive for them, and they have to cut back on business. – The diesel price from last year to this year has risen by 42 kroner and 55 øre per mile we drive, Persen says. Persen is disappointed that there were no cuts in fuel taxes in the revised national budget on Tuesday. The government fears an interest rate slump if the tax is cut, and they receive support from several professional economists. Persen believes that the Center Party has broken very clear promises: Storting representative Marit Arnstad told VG that they would not sit in a government that let the price of petrol pass 20 kroner. It has happened a long time ago. Trygve Slagsvold Vedum promised to reduce fuel taxes. It has not happened. – I am disappointed. I voted for him Vedum, because I thought it would get better with him. Berger firm The accounting figures for Persen’s firm have shown a nice curve in recent years, but now he is slowing down. – The company is doing well, but some action must be taken before it goes wrong, he says. – It’s not just diesel, but tires, wipers, steel – everything. A car I was offered increased by 75,000 overnight just for the body of the truck. The car he sells now is used for an assignment where expenses have increased by 17 percent, while payment only increases by 8 percent. – I have four more cars. You have to see what kind of driving you can do where diesel is not so extreme. Expenditures increase faster than price increases. To get the price increase in advance, he has ordered 60 tires to have in stock. Magne Persen has bought 60 extra tires now, since he expects a sharp price increase there as well. Photo: Kristin Humstad / news – We order tires before the increase is too high. Nobody knows anything about what will happen, says Persen. His drivers have tried to slow down to reduce fuel consumption, but then they quickly come into conflict with the rules on driving and rest time. Fear of bankruptcy Regional Manager Odd Hugo Pedersen in the Norwegian Truck Owners’ Association describes the situation as dramatic. – From 1 January 2021 until now, diesel prices have risen by 78 percent, Pedersen says. Most of the increase (43 percent) has come this year – after the contractors have agreed on a price for the work they do. Photo: Vilde Kristine Malmo / news – Many of our members have contracts that are regulated once a year, says Pedersen. – It will in the worst case lead to bankruptcies of someone who is not allowed to negotiate the prices with their clients. – We are talking about an industry that has a profit margin of 3 to 4 percent, and which struggles with low equity and low earnings even before this situation arose. Pedersen says that both the government and the Storting have been made aware of the challenge in the industry. – When they choose to ignore it, we consider it tone deaf. We have asked that we reduce the toll on diesel, possibly removing it completely. It would be of great help to our member companies. Fuel prices have risen many percent in a short time. This summer, the price of petrol can exceed 30 kroner per liter. Photo: Roar Strøm / news Affecting society According to Pedersen, many of the members have already reached the credit limit with the oil companies. Then it will soon be a full stop. – What does this mean for us who do not drive a truck? – You will notice that the roads are not plowed in the winter. You will notice problems with getting supplies to the stores. In the worst case, one could experience the situation where there are problems getting the necessary equipment to vital functions such as hospitals, says Odd Hugo Pedersen.



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