or a company that has replaced 80% of its fleet
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with new vehicles this year, international operator McMahon displays considerable caution on the subject of expansion.
"The tax system deters us," says director Jerry McMahan, who baulks at paying 40% corporation tax on profits. "For the investment and the risk factor the kickback is not good enough" McMahon, an executive member of the IRHA. says the Irish Government is finally beginning to listen to an industry that gets little support. Some funds are now available for driver training, including hazardous goods, "It's limited but a step in the right direction." he says. "We don't want handouts, we just want to be treated fairly." The company runs 10 vehicles from two sites. Eight of them (six Scanias and two Volvos), were bought new this year as part of a threeyear vehicle-replacement programme. Nine of the 10 are engaged on international work, carrying fish and processed meats to most parts of Europe including the UK.
The vehicle used in the home market distributes eggs for local Monaghan producer Corby Rock Eggs. This is fitting enough as the business set up by ferry McMahon's grandfather began by selling poultry in the fifties. When the young ferry went to work for his father in 1976 the business had become a wholesaler for dairy products. -We ran from Monaghan to Dublin and returned empty so we decided to backload with fruit and vegetables,'' he recalls. -That was our introduction to haulage.''
The international work developed from 1981 when McMahon took on a one-vehicle contract serving the UK market. He is prepared to adopt a watt-and-see attitude to the Tunnel. The fact that it won't be affected by bad weather counts in its favour and he predicts the ferry companies will have to offer lower rates to keep their market share. But as things stand he won't be a volume user: 70% of his loads go out to Zeebrugge or the Hook of Holland for Northern Europe.
In common with other Irish international operators he is sensitive to transport costs: "We have a problem because of where we are and the extra ferry journey. There is also the time factor of getting to the market it's not unusual to load for Eastern Europe." Having to buy Euro-1 engines pushed up costs by 10%. he adds, but "we've found it impossible to obtain rate increases". For that reason any savings in transport costs brought about by the Tunnel will not be passed on to customers.
McMahon insists that he would expand if there were more assistance from Government to aid the indigenous small business sector, which in turn would create permanent jobs: Government is willing to pump millions into multinationals that come into Ireland then 10 years down the road they move elsewhere to get a better deal. The opportunities are there but we won't pick them up until the incentives exist."
But there is hope. He believes the IRHA's campaign to achieve a better image is paying off with the industry viewed as more professional and more acceptable by the public. "In the past two years we have become a recognised force and membership is on the increase with 1,000 members out of 3,000 licensed hauliers—we would love to represent all 3,000."