A PLAN to link Queensland's fuel subsidy to drivers' licences could cost Jim Pearson Transport hundreds of thousands of dollars a year.
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Most of Jim Pearson Transport's fleet refuels in NSW but those passing through Queensland make the most of the subsidy.
The transport company's managing director, Jim Pearson, said if the plan was adopted, it would have quite a dramatic impact on the business.
"We are competing direct with Queensland companies which have Queensland drivers with Queensland licences," he said.
Under the proposed changes, NSW drivers would no longer be eligible for the eight-cent-a-litre subsidy.
Opponents claim the changes would inconvenience motorists, increase grocery prices and discourage tourists to Queensland.
A new $20 million scheme would require Queenslanders to swipe a bar code on their licence at the point of sale to receive the subsidy.
Port Macquarie-based Jim Pearson Transport, which operates 110 prime movers and 160 trailers, and employs more than 200 staff, would be among many businesses hit in the hip pocket by the change.
"If this new legislation goes through, which I expect it will, that would be a loss and will be quite a severe advantage to our Queensland-based competitors," Mr Pearson said.
"We won't have any choice but to pass increased costs on."
Transport Workers Union Queensland secretary Hughie Williams said the fuel subsidy changes would force interstate truck drivers to raise their costs, pushing up the prices of groceries and other goods.
"Thousands of tonnes of produce and goods is being brought in and out of Queensland, and those people spend many weeks of their time in Queensland filling up their trucks, and they're not going to get the discount," Mr Williams said.
"They're going to be very, very annoyed."
The Queensland government has rejected criticism of the plan.
A government inquiry last year found motorists had not received the full benefit of the subsidy.
But the NSW opposition has criticised the Queensland government's decision, saying it could lead to the end of a NSW program, known as petrol shadowing, where the state government financially assists north coast service stations to stay competitive by selling cheaper fuel.
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