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Fairplay for Trade and Industry

17th February 1939
Page 27
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Page 27, 17th February 1939 — Fairplay for Trade and Industry
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Which of the following most accurately describes the problem?

THERE is considerable concern amongst some of the associations representing the trade and industry of the country as to the ultimate effects of the proposed co-ordination between road and rail interests. For example, that part of the agricultural industry represented by the National Farmers' Union says that, whilst welcoming a degree of co-ordination, it views with a certain amount of apprehension the effect -upon the transport costs to the. industry in the future, one prominent member going so far as to suggest that the negotiations may be classed as an agreement between Herod and Pilate, and that the farmer is in the invidious position of being unable to pass on in higher prices any increased transport costs.

We quite appreciate and sympathize with such fears. With road and rail as competing factors, those who had loads to be carried could, to a certain extent, play off one means of transport against the other,. but—and this is a very important but—this has led to a state of affairs in which all transport interests have suffered, and the trader, and in these we include the agriculturist, has, perhaps, benefited somewhat unfairly. The housewife may complain because a grocer endeavours to combat the trading policy of a cutprice store, but the grocer can scarcely be blamed for trying to preserve his own business. Road and rail are in the position of that grocer.

Precautions Against Unduly Inflated Rates.

We do not believe that any effort will be made unduly to inflate the rates of either method of carriage ; in fact, special precautions are being taken to ensure that trade and industry shall be allowed to have their say on this point.

In the end, price-cutting benefits only a small minority. The effect is an all-round reduction in profits ; this means less for employees or a reduction in staffs, resulting in reduced buying powers, so that the vicious circle is completed, for the huge numbers of people engaged in road and rail trans The Road and Rail Problem port and its numerous rami fications must represent a very and Its Likely Effects on large percentage of the total Transport Buyers purchasing capacity of the population of this country. Transport is admittedly one of the major items concerned in all-in costs, but the elimination of rate-cutting should not have any really material effect upon the total. It will mean, certainly, that those producers and traders who have benefited unfairly in this particular respect at the expense of competitors will no longer be able to do so. Many concerns already place considerations of reliable and expeditious service above the small additional cost which these may involve, and they should be comparatively pnaffected so far as their transport rates are concerned.

Ancillary Users to Retain Their Freedom.

In addition, the joint memorandum, put forward by the Liaison Committee on Road Transport Rates and the railways, expressly draws attention to the fact that no restriction is to be plaaed upon the ancillary user. This, then, is in itself an important safeguard against excessive charges, for the trader Will retain his right to employ his own road-transport vehicles if he finds that the benefits accruing to him in other directions be not sufficiently attractive to outweigh his trouble in organizing arid operating his own transport.

In all fairness to road transport, it should be remembered that the control of working hours and the adjustments which are being made in the pay of drivers have raised the total cost of operation by an appreciable amount. Yet, so far, these additional burdens have not been reflected in the rates charged, except, perhaps, in isolated instances.

Haulage vehicles should be maintained in a spick-and-span condition and in a really satisfactory state of mechanical fitness, and the men in charge of them encouraged to take a pride in their work. This cannot be achieved, however, with any policy which leads to continual cheese-paring and the frequent receipt of "stop" notices.

Road and Rail Developments

AN announcement has been made by the National Conference on Road Transport Rates that, at a meeting held last Friday, the Conference unanimously approved the proposals contained in the joint memorandum submitted to the Transport Advisory Council by the railways and the Liaison Committee on Road Transport Rates. This Conference embraces all the important associations representing the road interests on the commercial side, and its decision is undoubtedly a matter of considerable importance, as indicating the wish to promote co-operation between road and rail.

Now the matter rests in the hands of the T.A.C, which, of course, has had numerous representations made to it by other interests, mainly " buyers " of transport, who are, as mentioned on the previous page, somewhat perturbed at the possibility of having to pay more for the carriage of their goods, produce, etc.

The Minister of Transport, in a recent address to the National Liberal Club, referred to the railways as the iron backbone of the country's commercial economy. He went so far, however, as to add that this did not mean the road services should be in a secondary position; they must be considered as complementary, and a proper understanding should result in sensible give-and-take on both sides.

It is believed by some experts that the so-called "iron backbone" has become somewhat rusty, but, perhaps, if they put their own house in order, as they have expressed the wish to do, the railways will be able to stiffen and polish the backbone. In the meantime, the road representatives must maintain a firm front and not be cajoled into accepting conditions which might, later, have an injurious effect upon the whole industry.

We understand that a further meeting of the T.A.C. is to be held to-day; following that, we may be able to gain some idea as to how long it will be before its Report is likely to be issued. Much depends upon that Report, and it must be thoroughly investigated from every aspect.

We are not too happy at the idea of the two years of grace which the railways have promised to accord in connection with their policy of objections to .A and B licences. This period may appear, at first sight, to be satisfactory, but the years pasS quickly, and it may take the whole of this time to put into effective working order the new system of agreed rates, following which, the railways might reopen their intensive campaign against hauliers.

In our opinion, there should be included in the T.A.C. Report a proviso that, if the system of agreeing rates under the mgis of the suggested Road and Rail Rates Tribunal proves satisfactory, the railways should give a definite undertaking that the two-year period shall be extended considerably.

Problem of Private-car Trailers

MUCH has been said on the subject of the use of goods-carrying trailers in conjunction with private cars, and the fransport Advisory Council has been asked by the Minister to consider the desirability of amending the present law regarding their use.

The Motor Legislation Committee has submitted a memorandum on the subject, pointing out that such trailers have a wide range of utility, and comprise caravans, and luggage and camping types, as well as those for the conveyance of tools, market-garden and agricultural produce, goods, horses and cattle.

It states that whilst these vehicles are inferior to commercial motors for regular commercial use, they are satisfactory for odd jobs, occasional small loads and for shopping and market requirements, and that it would be practically impossible to classify many of them as goods vehicles. It would also be a hardship, particularly to farmers and smallholders, if they were considered as goods vehicles, so that the owners and drivers would be compelled to comply with the many regulations which hamper ordinary commercial road transport. So far as the employment of trailers for what we may term " legitimate " purposes is concerned, we are in agreement with what has been said in this memorandum, but, as pointed out by the haulage interests, there have been extensions of their use which do not, in our view, come into this category.


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