VMA comments on contingency planning for fuel disruptions

Charles Watson, Visual Media Association Executive General Manager – IR and Governance, has commented on industry concerns regarding possible fuel supply issues affecting the industry. 

“Based on current information, fuel rationing is not something we would describe as imminent, but it’s certainly no longer a theoretical risk. The current government position is that national supply remains secure, and that emergency stock settings have been adjusted, despite localised shortages in regional areas, particularly in relation to diesel, which means businesses should treat this as a live contingency issue rather than a remote scenario.

“For the print and visual media industry, the immediate implications of any rationing or sustained supply disruption would be higher freight costs and delays in delivery. In practical terms, regional service delivery would come under pressure first. Additionally, depending on the geographic location, there may be greater difficulties for employees who rely on vehicles to get to work.

“Within our industry, businesses that would be most exposed are likely to be those with a regional footprint. That is where regulators are already focusing their attention, particularly regarding diesel availability. Any industry member with regional freight dependencies or customer delivery obligations is likely to feel the effects sooner than metro operators.

“The VMA is treating this as an active operational risk issue for members. The intention is to finalise and release our contingency plan framework shortly, with timing to be guided by how the supply situation and government response evolve over the coming days. Given the pace of developments, the framework must be practical and up to date when issued. The framework will focus on practical business contingency measures across workforce attendance, freight and supplier engagement, customer communications, fuel priority decision making, and when to trigger related decisions.

“Hopefully, we will return to BAU soon. However, from a longer-term perspective, the current situation may give businesses pause for thought regarding delivery route optimisation. This issue also reinforces the broader strategic case for sovereign capability in manufacturing and supply,” concludes Watson.