REMOVERS FEA TRANSPORT ACT
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Speakers at the Conference of the National Association of Furniture Warehousemen and Removers Deal with Possible Effects of Nationalization of Transport, Rate-cutting in Removal Work and the Problem of Small Lots
OBVIOUSLY the most important subject at the conference, " The Future of the Removals and Warehousing Industry and the Transport Act, 1947," was dealt with by six principal speakers, each of whom contributed a short paper. They were Mr. Arthur G. Coombe (chairman of the transport and legislation committee), of London; Mr. F. C. Skinner (chairman of the standing sub-committee), also of London; Mr. David Maxwell, of Glasgow; Mr. F. W. H. Winwood, of Worcester; Mr. J. G. Buckley, of Portsmouth, and Mr. A. George Beynon, of Cardiff.
Mr. Coombe evidently had doubts as to the wisdom of raising too many objections in the traffic courts, as in his opinion the main strength of the industry lay in the number of small operators.
Long-distance transport, he said, was being nationalized and a number of furniture-removing organizations had already been taken over by the Government. Road haulage operators engaged in household removals were excluded f..• m the operations of the Transport Act. .
In his view it was a bad policy for members of the Association to endeavour to • obtain permission to extend their operations, as to do so would be to weaken their present position. Any nationalized industry was hound to fall short, in the service it rendered, of that offered by the individual. There was a certain characteristic of private enterprise that made the individual keen on his job. Fear of losing it was banished when a man took service with the Government.
Government Competition
Mr. Skinner's view was that inevitably the furniture-removing industry Would be affected by nationalization. Removers were now open to keen competition from Government-controlled enterprises and it was vital that they should give the Government no justification for stating that their operations were uneconomic or that they were abusing their position in any way. In closing, he said that the passing of the Act had much increased the membership of the Association.
Mr. Maxwell, the third speaker, said that individuals would be penalized as the result of the operation of the Act. Not only would there be competition by Government operators, but also by short-distance hauliers who would show an increasing tendency to take up furniture removing as an adjunct to their current business.
In his view removers should keep a close watch on "Applications and Decisions" to put a brake on the influx of ordinary hauliers into their business. Collective 'action (by the Association) was likely to be the best way to deal with the problems that would arise. There was, Mr. Maxwell continued, insufficient information yet available to enable removers to decide what course to follow. Mr. Winwood . maintained that nationalization would affect the furniture-removal industry to a much greater extent than many people seemed to think. Independent removers had to contend not only with the British Railways, but with the rail-controlled removal companies, which had thou sands of containers. A Government Department, he pointed out, did notneed to make a profit and could cut rates to oust the individual. A-licence hauliers could switch over to furniture removals and thus provide an additional problem for established operators to face.
"State of Alarm"
Mr. Buckley declared that a state of alarm, but not despondency, existed in the industry, largely because of a feeling of uncertainty. The volume of traffic was diminishing and newcomers were entering the business. Obviously the B.T.C. would aggravate this position and, in the event of a shortage of work, would become more keenly competitive with members of the Association.
What was likely to be the future policy of the Commission? Mr. Buckley recalled that when the four main-line railways were first constituted, they began to buy up a number of small furniture-removal concerns in the hope of being practically able to monopolize the business. The move was a failure. The people who were then concerned were still in charge of the railway companies and would appreciate the unwisdom of such a policy.
Mr. Buckley did not think that the Government would endeavour to cut rates. In 10 years' time the public would probably have found that better service came from the individual and would act accordingly.
If it were found that independent removers were taking the cream of the traffic, said Mr. Beynon, the Government would take immediate steps to alter such a condition of affairs. It did not appear to be realized that the Government had already, in the petrol restrictions, means for applying any limit that it desired upon industry in general and upon the furniture, warehousing and removals industry in particular.
How Can Rate-cutting be Stopped ?
VrEN introducing Mr. C. A. Ball, of Manchester, who read a paper entitled "Price Cutting and Methods Suggested to Prevent It," Mr. S. J. Harris, president, said that the expression " price-cutting " had been absent from removers' minds for some time. Unfortunately, conditions were now reverting to normal and pricecutting was creeping back.
Mr. Ball began by referring, in commendatory terms, to a certain blue book produced in pre-war days as the result of the united efforts of the several centres of the Association. In that book were quoted a number of typical examples of removals and appropriate prices for them_ The centres wished that some such scheme embodying prices which should be standardized, should be applied by the Association. The executive committee, however, rejected the idea.
The first essential to the application of measures to prevent price-cutting was surely to adopt a rates schedule. The second was willingness. on the part of members to accept some limitation of their freedom of action, which compliance with a rates schedule involved. Further, there• must be provision for penalties in case of non-compliance.
Opponents of any such scheme pleaded that the Association did not embody all who were engaged in the industry, and penalties could not be applied. That was a hackneyed excuse. The Association should set a standard for the industry. Moreover, membership was increasing and if the N.A.F.W.R. were to set up a rates schedule and abide by it, the effect would be to narrow the margin between rates quoted by those outside the industry who did not accept it and rates from those within, who must.
the Association wished to stop price-cutting and were willing to apply penalties, it must first set up in each area a committee to deal with complaints. These committees should compile the evidence and documents, and determine on a course of action. There should be an appeals committee at headquarters. Members should pay deposits to cover•fines which might be imposed.
Enforcement Company .
Alternatively, a limited-liability company should be formed, with a subscription of not less than i10 per member. The function of that company should be to enforce the maintenance of prices.
Mr. Ball favoured the second of these proposals and the price structure which the Association put up should be parallel with Government rates for longdistance haulage.
He suggested that a committee should be appointed to set up a minimum rates structure, enforce the schedule and consider steps to educate members to the need for it. Rates structures already existed in Leicester and Derby ind were successfully applied.
During the discussion it was pointed out that minimum rates had a habit of becoming maxima, and that differences of conditions in various parts of the country made it impracticable to have a rates structure which would apply nationally. It was contended that the Association's proper procedure was to give guidance as to rates, rather than to enforce a schedule.
Mr. Geoffrey Wright, of Leicester, acknowledged the existence of a rates schedule in his city. He said that the people of Leicester were now educated to the extent that they did not ask for a quotation in the normal way, but said; "What is the rate for this job?" The schedule in force was. based on an hourly rate within a 16-mile radius and a mileage rate within a 26-mile radius.
Long-distance Removals
A rates structure of this kind, might at least be regarded as a beginning, but he appreciated that long-distance removals were a more difficult problem. He emphasized that, in his opinion, a rates schedule for long-distance removals should be based on cost of vehicle operation plus terminal charges.
A member from Southampton said that in his borough, too, there were agreed local rates. They were based on radial miles and zoned up to 10 miles, 15 miles, 25 miles and so on but he was of the opinion that national rates were a more difficult problem.
Mr. R. V. Stanford humorously—but probably accurately—described these two proposed methods of preventing price-cutting as being a good way of breaking up an area and said that, as the result of their application, members would leave the Association.
Mr. W. Isard, of Tunbridge Wells, also referred to Government interference. A method of diminishing pricecutting was, in his view, to hold frequent local meetings and discussions, during which it should be made clear that many members obtained work at high prices, thus demonstrating that it was not inevitably the lowest price that secured the job.
Other speakers also referred to the difficulty of agreeing a national rates schedule, because of the widely differing conditions of operation. Removers should, however, remember that they now had the Government as a competitor and should be ready to meet fresh difficulties which might arise.
It was decided that the matter should be put in the hands of the appropriate committee.
Moving Small Lots Quickly• TO furniture removers, " small lots are consignments of furniture up to but not exceeding 200 cubic ft. in volume, and their movement is a difficult problem. Mr. W. Isard described a method of dealing with them which, he said, was the outcome of the
deliberations of the local costing committee in Tunbridge Wells. It had been in operation for two years and was undoubtedly a success.
Those responsible started by collectMg information as to small lots awaiting delivery. Thereafter, weekly statements of additions and deletions were made. 1 he clerical work was handled by one local firm, which, in effect, acted as a clearing house. They were notified of vans moving in any particular direction, and, in their turn. advised the operators of those vehicles of the fact that small lots for movement in that direction were available.
There were many benefits accruing from the operation of this scheme. First, it had practically solved the problem of moving small lots quickly. It was a service by the association to local members, The scheme could be enlarged, but if it were made national it might become expensive and cumbersome. The best method would he for each locality to have its own smalllots bureau on similar lines and for there to be interworking.
Cheap to Run Once started, the scheme cost little.
the total of work involved amounting to two hours of 'typing per week. In the event of the expense becoming too much to be borne by any individual without recompense, a contribution of Is. per load per member would be ample to cover disbursements,
The local price committees prepared
a rates schedule, but did not suggest that these were the prices which should
be charged by other bureaux. They should be adjusted to meet local requirements, although they were usually acceptable.
A fundamental advantage of the application of the scheme was that it virtually compelled members frequently to attend local meetings, thus improving the relationship between operators in the locality.
Mr. Hard pointed out that it was sometimes difficult to persuade a is operator to give away a return load, bur that difficulty did not arise with small lots,
One of the speakers in the discussion
welcomed the establishment of these bureaus, because he thought that it would do something to demonstrate to authority that the industry was trying to put its house in order and work
economically