Rudd's stimulus package lifts new truck sales
PRIME Minister Kevin Rudd's latest $42 billion economic rescue package has already begun to work, according to Brown and Hurley Group general manager Jim Hurley.
Brown and Hurley, based in Kyogle, is Australia's largest seller of class eight trucks, which includes semi-trailers and B-doubles.
From nine locations in NSW and Queensland, the company had been averaging 11 to 13 truck sales a week. However, since the world financial crisis the number had halved. “This year we have been averaging 6.2 trucks per week,” Mr Hurley said.
However, since the announcement of the economic stimulus package last week, which has still not been passed in Federal Parliament, sales have skyrocketed.
“We took 43 orders in a week,” Mr Hurley said.
He said the announcement of a 30 per cent investment allowance had improved confidence in the industry. The company's core customers were businesses with small fleets of five to 15 trucks and it was this group that had become nervous about investing in new trucks.
Mr Hurley said it was still too early to say how much the package would help over the long term, but the initial response had been very positive. Brown and Hurley has been operating in Kyogle since 1948 and was founded by Jim Hurley's father, Jack Hurley, and Alan Brown.
The company employs 42 people in Kyogle alone.