Memorandum on Bplancing Charges
Page 29
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AMEMORANDUM on balancing charges, a matter raised by the road transport section, was submitted last week to the council of Liverpool Chamber of Commerce. The hauliers called attention to the fact that a sale of plant to the Britipt Transport Commission under the Transport Act 1947 was liable to attract balancing charge, whereas the sale of shares of a transport undertaking did not. Inequality of treatment was alleged.
The committee that examined this question said that there was no analogy between the sale and purchase of shares and of specific assets.
Balancing charges, in theory, adjusted over-allowances for wear and tear of plant and were calculated by the deduction of written-down value from the proceeds of sale, or cost, whichever was less. Where the level of monetary values applying at the period of sale was roughly equal to the values existing at the time of purchase, no inequity resulted. The final gain or loss determined precisely the allowance due to the owners of the plant during the period of use and balancing charges were thus a correction of interim estimates.
The memorandum concludes: "Current profits are not fairly ascertained unless the element of the cost of replacement is brought into account and it is to be hoped that representations to the Royal Commission on Taxation of Profits and Income may promote concrete suggestions which will correct this anomaly."
TORQUAY. FOR REMOVERS
NEXT year's annual conference of the National Association of Furniture Warehousemen and Removers will be held at Torquay from May 18-20.
The 1953 autumn conference will take place in London in October.
Cuts in Rates Not Justified
" THERE is no justification for any reduction in rates," exclaimed Mr. C. Hinns, presiding at the annual meeting of the Liverpool Cart and Motor Owners' Association last week.
Since the last increase in fuel tax, the Association's rates committee had investigated costings and had advised members to increase their charges. There had since been fluctuations in the prices of commodities and services used by them. . "There is a tendency on the part of some of our customers to expect a reduction in rates because, for instance, an announcement is made that the price of tyres is down. When such approaches are made we should draw our clients' attention to the substantial increases in wages and maintenance charges sshich, have been incurred since the last revision in rates and which have not been passed on," he said.
The Transport Act, 1953, threw a greater burden than ever on existing licence holders, in so far as the onus of proof that existing facilities were adequate now rested upon the objector. In the past, two or three objections had sufliced, but in future it would be necessary for far more objections to be lodged to obtain any success. Furthermore, it would be necessary to follow up the objections in a greater degree than in the past.
"Although the Act, in its present form, leaves much to be desired by.the industry," said Mr. Hirtns, "the fact that we arc to be freed is a step in the right direction." In Mr. Fantle opinion, once the selling of nationalized vehicles commenced, the whole of the assets would be taken up quickly. Sales were not, however, expected to begin before the autumn.
PERKINS ENGINES IN MANY SPHERES
AMONG the Perk ins-engi ned vehicles displayed at the works of F. Perkins, Ltd., Peterborough, on the occasion of the company's 21st birthday last week, were Trojan, Austin, Seddon, Commer, INSN, Rutland, Dennis and Guy.
The only passenger vehicles were a Seddon 4I-seater coach, fitted with an R6V unit, and an Austin taxi with the P4 engine.
Many types of mobile crane, fork-lift truck, compressor and generator plant gave ample evidence of the varied fields of application for the Perkins engine.
SPREAD-OVER CONCESSIONS
APROPOSAL by the Transport and General Workers' Union that penalty payments be made for duties with spread-avers of 9i hours or more, instead of 10 hours or more, has been accepted by the Darlington Transport. Committee. Duty breaks in excess of two hours will be regarded as working time which will rank for overtime, although the Union suggested that the period should be If hours.