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12th April 2001, Page 22
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Which of the following most accurately describes the problem?

Does someone in the iustry deserve a pat on the back, or a dressing down? Drop us a line at Commercial ;tor, Room 11203, Quadrant House, The Quadrant, Sutton, Surrey SM2 5AS or fax us 020 8852 8971. Alternatively you can e-mail melanie.hammond(Oblco.uk.

RHA CAMPAIGN

Your article headed "Hauliers Display Dunkirk Spirit" (CM5-11 April) tells of the sterling work being done by the Freight Transport Association in gathering tippers and other specialist vehicles to help in the fight against foot and mouth disease.

The article rather pointedly ignores the work being done by the Road Haulage Association. We have been working closely with operators, MAFF, the Intervention Board and the Army since the outbreak of the current crisis.

The RHA has longestablished tipper, livestock and waste hauliers groups, all providing invaluable sources of information and expertise and we have been inundated with offers of vehicles, all of which have been readily accepted.

The UK is now experiencing a problem on a scale that needs the collective endeavours of both our associations and we welcome the opportunity to work alongside the FTA to address the current situation.

Between us we have a wealth of resources. Let us pool these resources in an attempt to bring the crisis to an early conclusion.

Kate Gibbs, Press officer, Road 11aulage Association.

JAM PLAN

I do not have to go through the roadworks at Brentford often, the management of which would give me high blood pressure, but I pass close enough to see the effect, and the cost and frustration.

As a former haulage operator, I know about costs. Years ago, when the last government announced that it was going to use "all lane use" right up to the point of entry into a roadwork section, I offered a plan in detail—it would be much better except in cases of complete overload; I suggested the present system was OK for a boot sale.

I can offer a simpler plan. I could in a few words offer this alternate system, which would be relatively simple to operate. It could involve sensors to recognise fight/heavy traffic flows, and in the case of two lanes, two sets of traffic lights to operate at peak flow times with timers or sensors, to recognise low traffic density. Making use of information boards ( much as now) lights would allow about flea mile of traffic to pass at one time, alternately.

This would give faster entry, and increase flow to nearer maximum in the case of fight traffic flow, (with no traffic lights in operation) the request for all traffic to keep to the near lane, and to merge early, by a given distance. Any failure on the part of the motorist to co-operate would stimulate the sensors, and the traffic lights would again come into play, automatically. I would wish for the use of signs to indicate (as now) maximum and a requested minimum speed. Considering the enormous cost of road works, plus consequential cost to users, this wouldn't be difficult to operate. Cliff, G Cliff Farms, Margaretting.

NEW DRIVER

I have just read the article on the driver shortage in the industry and it makes for very interesting reading.

I passed my driving test for rigids a few weeks ago and I am amazed at the response I get when applying for jobs as a "new pass".

I don't blame anyone in particular, it's just a shame that it has come to this. Even some agencies require you to have two years' experience and this has been an accepted route to gain what you need.

So what do I do now? Should I start telling lies? I don't think so. Hopefully things will change in the near future so this has not been a waste of time and money.

Paul Foukes, Address withheld.

DEBT FACTORS

I read with great interest and, to a degree, disbelief, a recent article by Mike Jewell. It reported a Traffic Commissioner's desire to tighten the reins on hauliers who use third parties to control key sections of their businesses.

TC Tom Macartney is worried that hauliers who use factoring companies might not be considered to be of good financial standing, though there was once a time when factoring was seen as a reasonable way of financing a haulage business.

He went on to state that if anything went wrong with the factoring agreement "the operator could very quickly become bankrupt".

The article revolves around a case concerning IAJ Car Transport, about which I am not in possession of the full facts. However, I still find comments in this article hard to believe. In answer to these points: • I disagree that firms using factoring might not be of good financial standing. It is true that many years ago the factoring industry suffered from unfavourable perceptions, but I firmly believe businesses today consider it a flexible way of financing a business. This is supported by the fact that nearly 29,000 businesses use factoring today, compared with 16,000 in 1995.

• Tom Macartney stated that if something went wrong with the factoring agreement "the operator could very quickly become bankrupt". i do not see how this is any different from any other funding arrangement. In fact, bank overdrafts have been criticised for being repayable on demand. Factoring is not: a factor will work with a client to sort out any issues.

The decline in banks' overdraft lending is obvious, and the bank lending figures show firms are being moved across to loans or, indeed, factoring.

So a haulier is being faced with choosing an inflexible loan which will not take into account changing circumstances in the business. This is quite different from factoring, where the amount of funding provided is determined by the sales a business makes, so that as the business grows so does the amount of funding available to the firm. Factoring also needs no renegotiating.

On a final note, lam sure that Eddie Stobart, as a longtime stalwart of factoring, would agree with me and not the TC.

David Robertson, Chief Executive, Bibby Financial Services, Banbury, Oxon.