AT THE HEART OF THE ROAD TRANSPORT INDUSTRY.

Call our Sales Team on 0208 912 2120

Treasury Hears the Case Against the Budget

26th May 1950, Page 32
26th May 1950
Page 32
Page 32, 26th May 1950 — Treasury Hears the Case Against the Budget
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?

Keywords : Business / Finance

ADEPUTATION representing vehicle users, manufacturers and traders was received last week by the Minister of State for Economic Affairs, Mr. Gaitskell, and the Financial Secretary to the Treasury, Mr. Douglas Jay. It urged that the additional tax on petrol and the purchase tax on commercial vehicles should be reconsidered and remitted, because of the injurious effect that they would have on trade.

The deputation, organized by the Joint Standing Committee of the R.A,C., A.A., and R.S.A.C., was led by Canon F. W. Hassard-Short, chairman of the A.A. Other organizations represented included the Road Haulage Association, Passenger Vehicle Operators Association, Traders Road Transport Association, National Road Transport Federation, Society of Motor Manufacturers and Traders, and the Scottish Motor Trade Association.

lunation Encouraged

According to Mr. R. Morton Mitchell, chief executive offic,er of the R.H.A., the deputation put the . case against the Budget proposals, and the R.1-1.A. argued against the inflationary tendency which these proposals had created. The Association explained the cumulative effect on the cost of goods and services of additional burdens. such as the increased price of fuel and the purchase tax on goods vehicles.

So far as the R.H.A. was concerned, said Mr. Mitchell, a serious examination had been made of the effect that the changes would have, arid figures produced by operators had been carefully studied to establish what the resulting operating costs would be. The-se varied between operators, and in some cases the increased prices for fuel and vehicles raised operating costs by 14.5 per cent. The R.H.A. had, therefore, considered the 10 per cent. increase in charges recommended, to be reasonable.

It was pointed out that the decision

to raise charges had not been taken lightly, but was arealisticattempt to

meet the additional burdens imposed on hauliers by the Budget. These had reached a pitch at which it was possible a30 only to pass them on to the users. If the Treasury found it possible to Withdraw these impositions, the R.H.A.would be the first to recominend reduced charges.

Col. A. Jerrett, chairman of the National Road Transport Federation, said that the real purpose of the Budget was to offset the effect on the railways of the increase in their charges, which

the Govern ment subsequently.

announced had been approved. In these -times of national economic stress. no measures designed to restrict the efficient and economic working of commercial road• transport could be accepted. Additions to the operating costs of commercial vehicles had already created a material increase in transport c ha r ges, despite • the Chancellor's exhortation to avoid inflationary tendencies.

Whilst no statement has yet been received from the Treasury, "The Commercial Motor" is informed that Mr. Gaitskell and Mr. Jay expressed their intention to consider the points raised and to announce a decision later, It is understood that further deputations are to approach the Chancellor, r epr e se nt ing passenger-transport ,interests and industry in general. The Federation of British Industries will, it is reported, state the case for manufacturers and trade in general.


comments powered by Disqus