Rates RHA Makes New Statement
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IN last week's leader "The Commercial Motor commented that the Road 1 Haulage Association seemed, on the face of things, to have been outmanteuvred in the discussions about the rates increase and the recommendations of the Prices Board. The leader concluded: "The RHA had better decide whether they really have acted in hauliers' best interest, They have been invited to say so in next week's issue."
The following statement was received from the RHA on Tuesday:—
ANXIETY has been expressed by members of the Road Haulage Association in some parts of the country at the possibility that they will not be able to obtain from their customers the increase in rates on which they are relying. To allay this anxiety it is necessary to set out the situation which has now been reached following the interim report of the National Board for Prices and Incomes and the subsequent discussions involving the Board, the Association and the Secretary of State for Economic Affairs, Mr. George Brown.
In view of the considerations here explained it may be agreed that the sharp questions put to the Association by The Commercial Motor on July 2, though they may have seemed pertinent at that date, were already superseded by events and are no longer relevant.
As the discussions were conducted to a large extent in the glare of publicity there were almost bound to be contradictions in some of the statements issued at various stages by the different parties.
It soon became clear, that there were popular misconceptions about the issues involved. There was a general belief that the Association had instructed all members to put up all their rates by 5 percent: and that in direct opposition to this the Board had advised traders and manufacturers to refuse to pay any increase at all. To many people it seemed that the Association was being asked to withdraw the instruction and that as a result members would get nothing.
Association's First ,Task The first task of the Association was obviously to obtain an official and unequivocal denial of this interpretation.
The true position was that the Association last April recommended a 5 net cent increase without expecting that every member would be able to apply it in full; and that the Board had criticized the practice of making blanket recommendations as not being in the interests of the road haulage industry or its customers.
The Board went on to say that the latest recommendation, due to take effect on June 29, should. "if not withdrawn, not be accepted by the industry's customers". Taken in isolation this may have been capable of more than one meaning. The context makes it clear that A26
the Board were merely telling customers not to grant a 5 per cent increase without question but to negotiate individually with hauliers as and when they made an approach.
This was no different from the effect which the Association expected from its own recommendation. At the time when this was made the Association was confident that members would be able to justify to their customers whatever increase was necessary to compensate for increases in vehicle licence duties and in wages—the two items mentioned by the Board—and in other items of costs to which the Board will be giving consideration in due course.
Doubt about Recommendations
Because of the considerable degree of doubt left by the wording of the Board's own recommendations—although this doubt was not justified by a careful reading of the report—it was desirable to have an authoritative statement. This Was provided by Mr. George Brown in a BBC interview, when he said: "The point is, some prices, of course, may have to go up—one recognizes this. But I repeat, they mustn't go up until people have done everything they can to obsorb their cost increases."
It is surely right that any business which is able to make economies in operation is entitled to at least a share in the resulting financial benefit. Leaving this point on one side the principle briefly enunciated by Mr. Brown has been followed by most hauliers in the past. In his discussions with representatives of the Association, therefore, it was not difficult to find a meeting point.
Once this had been done, and it was clear that hauliers would not be officially hampered in their approach to customers, the precise figure of 5 per cent, which appeared to loom so large at the beginning of the discussions, no longer had any relevance: The Board have still to publish their final report. There will be further discussions with the Association and these will deal among other things with the procedure to be followed in the future when substantial changes take place in road haulage costs. Meanwhile, the Association remains convinced that most of its members will have to increase their rates and earnestly hopes that trade and
industry • will deal with hauliers' approaches in a reasonable and understanding manner.
The Association is prepared to advise members that blanket rate recommendations should no longer be made. It must be pointed out, however, that the practice has been followed in the past because so many members, especially those with small fleets, looked to the Association for support when an approach to customers became necessary.
Whatever new system is adopted will, it is hoped, have the approval of the Board and of the Government and their support and prestige ought to be invalogble to all operators whatever the size of their businesses. Such support should go a long way towards removing the need for the Association to set the stage for members by having a precise figure in its recommendations.
Already the Board has shown itself prepared to lend authority and weight to measures designed to improve the efficiency of the road haulage industry and therefore to benefit operators. Proposals for closer co-operation with the unions in an effort to improve productivity are in line with the recent establishment of voluntary negotiating machinery.
The Board also gives strong support to the Association's pressure to persuade members to specify demurrage charges in advance for delays that are clearly the responsibility of the customer. Reports from members even before the appointment of the Board indicated that the majority of customers were ready to accept the case for demurrage charges but it can only be helpful to have the backing of an impartial body.
(See editorial comment on page 25.)