IN CRISIS: Several transport companies go bust
MORE Queensland transport companies will go under unless regulations are introduced to improve the financial health and safety of the industry, the industry's peak union has declared.
In the past month several Queensland transport and haulage businesses have been placed in liquidation owing the tax office and creditors almost $700,000.
Family-owned container haulage company ScuzzTrans was put in liquidation on September 20 with debts to 18 unsecured creditors totalling $246,640.
ScuzzTrans had about 35 machines including trucks and trailers and had offices at Casino and the Port of Brisbane.
The small family-run business, which sponsored the 2016 Brisbane Convoy for Kids, owed Strike Fuels $82,143 and $20,028 to the National Australia Bank.
Transport Workers Union Queensland state secretary Peter Biagini said the industry was "absolutely in crisis".
"Everyone agrees unless something is improved there are going to be many more insolvencies," he said.
"There is that much wage theft going on in this industry, companies are undercutting each other by doing it cheaper and paying below the award rates."
Mr Biagini said long payment periods to businesses of up to 120 days was "killing their cash flow".
He said trucking companies were at the mercy of clients and could not afford to refuse future service.
"They hang in there before it gets too hard and they're closed by their creditors," he said.
Bagy Haulage, based at Miles west of Chinchilla, was crippled with debt and put in liquidation on September 3.
The regional Queensland company owed 14 creditors about $417,000, according to a report authored by its director Annette Young.
Ms Young, listed as the company's largest creditor, is listed as being owed $160,000.
Liquidator Brendan Nixon of SM Solvency Accountants later noted there was a lack of supporting evidence to prove the debt owed to Ms Young.
Bagy Haulage owes the Australian Tax Office $48,319.
Nik's Transport, a courier service based at Crestmead, was also put in liquidation on September 19.
A Senate Inquiry into the issues of the transport industry is expected to kick-off this year.
Mr Biagini said the reintroduction of the minimum financial payment period of 30 days - a measure removed by the Turnbull Government in 2016 - made the industry unsustainable.
Liquidators or administrators were appointed to 113 Queensland businesses in September.