AT THE HEART OF THE ROAD TRANSPORT INDUSTRY.

Call our Sales Team on 0208 912 2120

Increases in Operating Costs

23rd March 1940, Page 11
23rd March 1940
Page 11
Page 12
Page 11, 23rd March 1940 — Increases in Operating Costs
Close
Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Which of the following most accurately describes the problem?

THE standard work of reference on road trans port economics, "The Commercial Motor Tables of Operating Costs," is still adaptable for use to-day, in conjunction with figures we published so far back as October 28 of last year. Whether vehicles be used for the conveyance of goods or passengers, their costs are rising. When war broke out the curve of fluctuation rose steeply at first and then flattened out. Costs are at the moment almost stabilized. No one, however, can foresee the future, especially in a matter of this kind, but if there be anything in Sir John Simon's promise to endeavour to stay further increases in commodity prices, and, again, if that promise applies to such things as fuel, lubricants, tyres, spare parts, vehicles and, last but not least, wages, we may anticipate that further changes in the total cost of operation will be comparatively small.

The alterations in circumstances were anticipated by The Commercial Motor, and action taken accordingly, so early as on October 28 of last year, when we published an article showing the percentage increases in operating costs, as compared with those in the current issue of our booklet, familiarly referred to all over the country by operators and users of all degree as " The Tables."

The Only Authority on Vehicle Costs That we should take the step just mentioned, and provide at once for the altered conditions, was only to be expected, "The Commercial Motor Tables of Operating Costs" is the standard work of reference in its subject throughout the country. It is to be found in every Government department, in the War Office and the Admiralty, in the transport offices of municipalities and county councils, and in the libraries of colleges and schools of economics. Every operator, whether concerned with the carriage of goods or of passengers, has a copy available for reference, for purposes of comparison and as a check on his own records. The Regional Commissioners use it, and the District Transport Officers. It is even employed overseas, notwithstanding that the actual figures are rarely strictly applicable, but because the method of com pilation, and the practical arrangement of the figures, are convenient for use as a basis for comparison.

The reason for this widespread adoption and acceptance of "The Tables" as the authority, the justification for the high esteem in which this publication is held, is that the figures are always accurate and up to date. That is the outcome of painstaking care and, especially, of the establishment of measures for keeping a close and strict watch on fluctuations and tendencies to fluctuation in the prices of commodities concerned, in wages and other conditions which affect the total operating costs. The figures are revised at intervals so short as to ensure that the margin between those published and the actual is negligible. All the time intervening between successive issues the records on which the tables are based, the data from which they are compiled, are continuously under revie*, so that we are always in a state of preparedness for the next edition.

How the Tables Can Now be Applied It followed naturally, therefore, that, so soon as the war started, its influence on costs was noted, almost as a matter of routine. It became immediately apparent that something must be done at once to provide means for rectifying the current issue of "The Tables," something which could be done quickly. A satiation had arisen which could not be dealt with by 1 new edition of "The Tables," since that would take too long to produce. Hence the publication of the article on October28. In that article figures were given for the increases in costs, in such a way that they could be applied as corrections to those in "The Tables," bringing them up to date and making them usable until such time as a new edition, embodying increases in cost to date, could be produced to good purpose.

Moreover, the figures given in that article were, to some extent, anticipatory ; they included provision for increases in costs which-tad not then occurred—at least, to the extent provided for in the -figures. So closely did we forecast the trend of events in that article that the figures then given are accurate to-day. The only positive increase not included is the recent rise of id. per gallon in the price of fuel. The percentage increases in total costs and charges therein quoted stand to-day. When further correction is necessary we shall again deal with it before, rather than after, the need arises.

The Suggested All-haulage Association

I N an article which appeared on pages 66 and 67 of our issue of February 24, S.T.R. put forward a strong plea for a reorganization of the roadtransport associations. One essential for after-thewar success in the goods-haulage industry, he opined, is that all A and B licensees should consolidate their interests. The best way to do that is for all of them to combine in one association which should exclude any but A and B licensees. Only by so doing will any association 'be able to devote itself whole-heartedly to the interests of hauliers.

He would be the first to admit that such consolidation will not be effected without difficulty, or without involving complication of some kind or another. He is not at all surprised that we should receive the letter which appears in our correspondence columns in this issue. The writer of that letter, owning vehicles licensed in all three classes, fears that, if S.T.R.'s plan be implemented, he will be left out in the cold. That, however, is not so. The briefest examination of his circumstances should be sufficient to convince any reasonable man that his interests lie mainly with those of A and B licensees. The mere fact that he also operates a vehicle under a C licence should be no bar to his membership of an All-haulage Association. The same applies to many hundreds of operators similarly placed. Community of interest must be the test of suitability for membership. The correspondent in question would pass through such an examination with flying colours.

Cleat? Out the Augean Stables

THE effect on many hauliers of the most recent proposals as to increasing wages in the industry can be gauged by a letter recently sent to the Road Haulage Central Wages Board by a well-known haulier in the London area.

It takes the form of an objection to the proposals contained in Form R.M.3 dated March 1, the view taken being that their imposition before the effect of the previous awards can be experienced, is another cost artificially imposed upon road transport, and one which cannot be passed on to consumers, forced to send their traffic by rail.

The Government attitude in that respect, coupled with the rising costs and restrictions on vehicle fuel, and replacements, will achieve the elimination of free road transport.

He asks that if it be the desire of the Central Wages Board to hasten the end, why should it not come into the open and say so, instead of subjecting operators to a lingering death. If this attitude be disclaimed, then all forms of transport should receive equal consideration and assistance. The present proposal will merely hasten the reduction of labour in the industry and the laying-up of vehicles, with more loss of revenue to the war chest. The railways themselves cannot afford to pay hauliers the price asked to clear railheads.

The present policy allows them a little time to use, at their own price, road transport, the traffic of which has been filched. When that situation clears itself by the disappearance of those hauliers who try to work below cost, it is hoped that the authors of all these measures will be given the task of cleaning the Augean Stables at railheads and justifying the diversion of the financial river which will be necessary.

It is curious to remember that these ancient Stables were occupied by 3,000 oxen and that the cleansing was followed by a war in which the owner of the Stables was dispossessed and his kingdom handed to the one he had disinherited. The Hercules who cleans the stables and reinstates road transport might well be the business and trading interests which are tired of the filth of congestion and excuse.


comments powered by Disqus