With the scheme to go by July 1, Moree-based Tauson Transport managing director Ray Byers predicts companies in Queensland, where there is an 8 cents per litre fuel subsidy, will be given the upper hand.

He said the problem would be compounded by the cheaper heavy vehicle registration fees in other states.

The NSW Government would lose money because “people will buy a block of land over the border, register their trucks in Queensland and buy their fuel there”, he said.

“So NSW will miss out on a heap of their rego. They’re putting it up to stupid prices anyway,” Mr Byers said. “(The State Government) are just hurting themselves.”

Mr Byers is one truck driver who’s had enough of the job and the industry and just about to leave, with six of his seven trucks sold.

He said escalating fuel and vehicle registration costs, tighter industry rules and regulations and a shortage of good drivers had led him to deciding earlier this year to sell up his business.

“It’s no fun anymore. It’s a very demanding and thankless job,” he said.

“A few years ago it was a good job and you enjoyed doing it. Now it’s all a drama.”

The Australian Trucking Association’s NSW branch says the scheme’s abolition — which will save the Government $44 million — will make it harder for northern NSW transport companies to compete fairly with their Queensland counterparts.

Branch manager Jill Lewis said the decision would force NSW companies to increase their freight rates or reduce their profit margins to stay competitive.

“The decision will place our members in a diabolical position,” Ms Lewis said.

Northern Tablelands MP Richard Torbay said the State Government had little understanding of regional issues and the impact of the cuts would be negative.