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'Astonishing' prices report verdict RHA
Page 6
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ROAD Haulage Association national chairman John Silbermann launched an attack on the Price Commission investigation into road haulage on Monday when he accused it of reaching "astonishing conclusions" about the industry.
He told Cardiff Business Club the sad truth was that road haulage was cheap, probably underpriced and in financial danger.
"And most serious of all, we cannot see any prospect of being able to replace our lorries — and that means the slow destruction of our businesses," said Mr Silbermann.
He said the RHA refuted the statement that increases in fuel and wages costs should be absorbed by the industry: "When fuel costs rise through the actions of either the oil companies or of the Government, hauliers have no option but to adjust their charges."
Mr Silbermann said that the industry could not suddenly negotiate improved fuel rebates or take any immediate steps to reduce fuel consumption and the same applied to wage increases negotiated without genuine productivity benefits — "they cannot be absorbed," he said.
On Price Commission proposals that the industry should introduce tachographs, double shift working, rescheduling and eliminate delays at terminals. He said all this had to be done with the co-operation of the trade unions, customers and the Government. He suggested that the Government could do something about increasing efficiency by negotiating and reaching agreement with other EEC states on increases in vehicle gross weights.
Mr Silbermann could not see any justification for the restrictions placed on prices Haulage was an industry in which the profitability had declined and the inability of the operators to replace their principal assets would result in a reduction of the numbers and efficiency of vehicles.
He addedthat if they were not allowed to increases, their rates then profitability would further decline, quality of service would get worse and the prospects of replacing vehicles would almost disappear.
"It is hard to see how this latest Price Commission report can be said to have justified the effort and cost. The least the industry can expect now is the Government's cooperation in persuading the unions to negotiate more efficient working practices and in trying to interest industry and the retail trade in taking deliveries outside peak hours," said Mr Silbermann.