The S.M.M. and T. Criticizes The Salter Report
Page 58
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TIIE Society of Motor Manufacturers and Traders desires to associate itself with the memorandum recently submitted to the Minister by the Motor Legislation Committee, but ventures to amplify that memorandum.
Ilosts TR/UDE : The S.M.M. and T. represents every branch of the industries of Great Britain engaged in the manufacture of motor vehicles, tyres, parts and accessories and their distribution. The 1,000 members represent 250,000 workpeople and an annual output of 1120,000,000. Affiliated are the Motor Agents' Association and the Scottish Motor Trade Association, representing 10,000 concerns selling motor products, and the garage and service branches of the industry, representing 250,000 people. The total excludes probably more than 1,000,000 in the various roadtransport concerns.
PREJUDICIAL EFFECT or THE REPORT: The publication of the report has already seriously affected employment in the commercial-vehicle industry, which has been subjected to a series of legislative measures which have progressively and adversely affected the manufacturers.
PART I.
CONSTITUTION AND TERMS OF REFERENCE : The railway representatives were the four executive heads, and although the interests of the motor-manufacturing industry were vitally affected, they were not represented.
Although the terms of reference included an instruction to consider the dual functions of road and rail, the Conference makes recommendations solely to raise road-transport costs.
Probably the greatest prcblem for productive industry in Great Britain is competing with other countries in the world markets. This world aspect seems to have been totally disregarded, and it has been offered no help towards a solution. On the contrary, the additional taxation and restrictions are calculated to increase the cost of transport. There are three vital problems for British productive industry :—(a) Economy of public money ; (b) reduction in all forms of taxation ; (c) reduction of artificial restrictions on enterprise not justified in the community interest. The Conference proposes : (a) no economy in road expenditure; (b) substantially increased taxation ; (c) substantial restriction on enterprise.
ORIGIN OF THE CONFERENCE The reason for the formation of the Conference was an intensive publicity campaign to influence public opinion. Statements of the railways, broadeast in an unprecedented manner, are on record.
It is necessary to mention that in 1927, at the instance of the S.M.M. and T., the railways appointed official representatives to meet the Society on one of the questions remitted to the Conference. This report, agreed by both sides in January, 1928, is never mentioned by the Conference. It included a tabulation of all material figures governing the expenditure on highways, the allocation of costs as between ratepayers, the Exchequer and road traffic, and constituted a recognition that a lair allocation of total annual contributions by the ratepayers was a figure which could properly be fixed at from £24,000,000 to £28,000,000.
PART II.
HIGHWAY Coss's : The Society does not admit that the figures quoted in paragraph 22 are in the least relevant. Even on the assumption that interest on capital is a "railway track cost" corresponding to that provided for road users, the figure of £800,000,000 has no relation to presentday values.
INCIDENCE Oi HIGHWAY EXPENDITURE: (a) The Society prefers to accept the considered proposals of the Royal Commission on Transport, suggesting that the total road costs should be appropriated between 'ratepayers and mechanical road traffic in the proportions of one-third and two-thirds ; (b) the fair allocation from the rates was agreed with the railways at the figures given above; (c) the total of 160,000,000 suggested by the Conference should be considerably reduced in the near future.
-UNFAIR COMPETITION: The Society takes the strongest )332 objection to the implication that the conditions applicable to road and rail competition are unfair to the railways. The following facts indicate the reverse: (a) road vehided were stated by the Royal Commission to be paying their fair share of road costs at a time when the petrol duty was 4d. per gallon. At the present rate of 8d., the contribution amounts to /32,000,000. Part of this is a subsidy to certain classifications of rail traffic ; (b) over 30,000 untaxed railway-owned horsed vehicles are competing with local motor goods vehicles ; (c) road passenger fares are controlled by the Commissioners, but railways are free to fix any special excursion or other facility ; (d) railways have made little provision for obsolescence; road transport, including tramways, must provide for depreciation; (e) the Society cannot see that the contribution by the railways to the rates, which has been largely reduced by the petrol duty, is in the least relevant: that by the varied branches of the road-transport industry is far greater.
RAILWAYS AND TRADE DEPRESSION: Railway LTailiC resuiting from the improvement of the road, the development of the motor-manufacturing industry and the vast housing and industrial schemes, has in reality saved the railways from a position which would have been infinitely worse.
(a) The decline in tonnage of mineral traffic has been no greater than that of the outputs of coal, iron and steel;
(b) the gross receipts from merchandise have been maintained at a phenomenally high figure when compared with the value of manufactured products imported and exported; (c) the expenditure on railway working has not fallen proportionately with commodity prices, nor has the percentage of railway expenditure to receipts been maintained at a level which can be justified.
It should be observed that in Australia, where the Government-owned railway systems have successfully destroyed road competition, the losses on the railways reached in one year the colossal sum of £11,000,000.
TAXATION AND ITS RELATION TO EXPORT: Any schedule or method of vehicle taxation should be such as to assist the export trade on which the country depends.
UNEMPLOYMENT A NATIONAL PROBLEM : No small proportion of the cost of road-improvement works for the past, year has been due entirely to the necessity of relieving unemployment. The Conference assumes that motor traffic itself should, of necessity, pay this cost, however inflated by circumstances over which it can have no control.
PART III.
ARTIFICIAL RESTRICTIONS ITPON ENTERPRISE: The Society takes the view that artificial regulation is only justified if Public necessity demands the restriction of individual enterprise. The regulations affecting public-service vehicles are in their infancy. No one can yet say whether they have been justified, but from the point of view of the makers they have proved inconvenient and cumbersome.
The Society is wholly opposed to any further regulation of hauliers or ancillary users. Such regulation is opposed to the interests of trade and industry at a time when, above all, removal of unnecessary restrictions is demanded, and vital to future prosperity.
The report proposes a cumbersome system under which costly bureaucratic departments would be established.
PART IV.
Division or FUNCTIONS: Although in the case of the motor vehicle, present retail prices of cars are 20 per cent. below the 1914 level, and export prices at least 25 per cent. below that level, receipts per ton of goods carried on the railways are maintained at approximately 94.5 per cent. above those of 1914.
Corisrunaravn Potacy ESSENTIAL: The Society hopes that the Government will offer an opportunity to it for submitting practical and constructive proposals for the taxation and regulation of road transport and for the co-ordination of commercial road transport with other branches of the transport inaustry, of which the railways admittedly form an essential part.