As representatives of the Food Bank For NYC, the NYC Hospitality Alliance, and Baldor Specialty Foods, we represent critical parts of the city’s food supply chain — a network that serves millions of New Yorkers every day, whether they’re ordering a meal at a local restaurant, buying groceries at a local supermarket or bodega or relying on food relief.
While we understand and support the city’s goals of reducing traffic congestion, improving air quality, and funding public transportation, we are deeply concerned that the congestion pricing policy, set to take effect on Jan. 5, 2025, places an undue burden on essential food distributors, restaurants and hunger relief organizations.
We’re already operating in one of the most logistically complex and expensive cities in the world to deliver and serve food.
Now, with the added burden of congestion pricing, these costs are only getting heavier.
That’s why we are calling for an exemption for local food and beverage distributors before this policy is implemented. Food distribution should be treated as an essential service.
New York City’s renowned food culture relies heavily on its local food distribution network.
Restaurants, grocery stores, hospitals, schools, and food pantries across Manhattan depend on truck deliveries to stay in business and meet the needs of their customers.
The food sector cannot rely on public transportation to deliver essential goods — whether it’s fresh produce, meat, fish, or dairy, and whether it comes from the Hunts Point markets in The Bronx, from the numerous local wholesalers and producers in the other boroughs or from a food relief organization.
The current congestion pricing plan fails to recognize this basic reality.
New York-based businesses already contribute significantly to the city’s transportation infrastructure through the Metropolitan Commuter Transportation Mobility Tax (MCTMT).
Yet, the new congestion pricing policy would impose an additional tax on local food distributors and the businesses they supply, including nonprofits and the people they serve.
While larger companies like Baldor will try to absorb these costs into operating expenses as much as possible, not all distribution companies will have that ability.
That means that costs will ultimately be passed down the food chain to consumers, resulting in higher prices.
The food distribution network serves large businesses but also thousands of small, locally owned restaurants, cafes, bodegas, and food retailers that make New York City unique.
Many of these small businesses are already struggling with high costs due to inflation, high commercial rents, taxes, and complex regulations.
The introduction of congestion pricing would be yet another blow, raising the cost of the goods they purchase, making New York even more expensive to operate.
When New Yorkers are already grappling with high food costs, the prospect of additional charges will only make things worse.
Small businesses operating on thin margins will have no choice but to pass these costs onto consumers who already say it’s expensive to dine out and buy groceries.
This will hit low-income families hardest, making food even less affordable for those who are already burdened by rising costs of living.
Efforts to support small businesses and create a more equitable food system will be undermined.
Beyond the financial concerns, congestion pricing risks undermining New York City’s public health goals, particularly efforts to address chronic and diet-related diseases.
New York has long been a leader in promoting healthier eating and reducing health disparities, but rising food prices could have the opposite effect.
For many New Yorkers, especially those in low-income neighborhoods, access to affordable, nutritious food is already a struggle. Higher prices or fewer healthy food options would disproportionately affect people most at risk of chronic conditions like heart disease, diabetes, and stroke.
We know how critical it is to maintain a stable food supply for vulnerable populations.
Food banks and the pantries they serve are the last line of defense for people facing food insecurity.
If food prices rise or availability decreases due to congestion pricing, it will further strain Food Bank For NYC’s ability to serve the city’s most vulnerable residents.
We know Gov. Hochul and New York’s government leaders care deeply about and recognize the importance of our food distribution system, food relief organizations, and local businesses.
So, we implore you not to try and fund one essential service — public transportation — on the backs of another equally vital service, food distribution.
The solution is clear: New York must create an exemption for local food and beverage distributors from the congestion pricing charges.
We should not be penalized for keeping the city’s food system running.
Leslie Gordon is the President & CEO of Food Bank For NYC. Seth Gottlieb is the SVP, Logistics, for Baldor Specialty Foods. Andrew Rigie is the Executive Director of NYC Hospitality Alliance.
https://nypost.com/2024/12/21/opinion/congestion-pricing-will-severely-hurt-nycs-food-supply-chain/
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.