A.R.O. Propounds New Policy
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Hauliers' Sectional Board Insists on Great Value of Independent Small Operator, But Suggests Enforcement of a "Code of Conduct and Fair Trading" in Conjunction With Standardized Rates of Carriage ASTATEMENT of considerable interest has been issued by the Hauliers' Sectional Board of A.R.O., which unanimously approved the points involved. It will, of course, be realized :that, eventually, A.R.O. will become the Road Haulage Associa.tion, but it is hoped by the Board that the latter will also agree to the proposals.
In a foreword, it is pointed out that A.R.O, represents some 10,000 hauliers, ancillary users and p.s.v operators.
The proposals are those of the Board and are based .upon the fundamental assumption that, after the war, the national interest will demand .high ideals of public service throughout, and closer co-operation between. every form of transport.
It goes on to point out that there is evidence from traders, as well as hauliers, that traffic is not being moved so rapidly as under private enterprise; that the concentration of vehicles into fewer hands has not led to greater efficiency. and that empty running and light loading have i creased. In fact, the operation of the Government Scheme las proved the sound economic justification of the smaller unitr which compose the road-haulage industry. This industry might well have been " throttled " by the load of taxation and legislative restriction imposed upon it during the pas. 15 years. It has • Survived by virtue of its efficiency and virility. The source of the latter lies in the numerous small operators' initiative, resource and courage, volsich have gives to the industry that resilience, flexibility and capacity for service for which it is renowned.
Trustification and even nationalization may be theoretically applicable to industries, the units of which are huge, rigid and stable. Both would bring disaster if applied to road haulage, which is composed of small, self-contained and mixed units.. -' Nationalization of all forms of transport, although theoretically it would appear to secure complete co-ordination in the national interest, would be even more imprac ticable. Much of this criticism is also relevant to the suggestion of control through a Board . on the lines of a publicity-utility corporation.
The Hauliers' Board feels that sufficient has been said to justify its firm insistence on the retention of the small operator, provided he conducts his business in compliance with the just claims ot, the community as a whole.
Regulating the Haulage Industry '
Successive Traffic Acts have imposed various regulations, giving a measure of stability to the industry and removing the worst features of uneconomic competition. In principle, therefore, these regulations should be maintained. They may be summarized as: (1) Observance of fair wages and conditions of employment through the Road Wages Act, 1938:' (2) the various conditions governing safety on the roads, such as speed and weight limitations, and maintenance of vehicles;' (3) certain conditions attaching to some licences. .
To secure fair competition between various forms of transport, one further control would seem to be necessary. The proposals relative to an agreed rates structure, obligatory on both road and rail, contained in the T.A.C. Report of 1939, embody almost all that is required. The Haulage Board, therefore, accepts the policy of statutory control of rates and conditions of carriage. The latter might vary with the influx of new traffics and according to the changing circumstances of life. They should, therefore, be constantly open to review by a competent body, otherwise the principles of standardized rates and competition in service cannot be maintained. It is felt, however, that a " Code of Conduct and Fair Trading " can be relied upon to provide for any such modifications in operation as May arise from any cause. This Code should be drawn up by the industry and embody all the principles of an efficient public service. As operating conditions change, it is impossible now to lay
,M120 . down a rigid Code. It is, therefore, felt that its compilation and subsequent modifications should be left in the hands of the industry through the projected R.H.A., which will alone represent all organized A and B licence holders. Statutory enforcement of the Code would be essential. This might-be secured by making it a condition of the haulier's licence, in which case there must be some machinery of appeal againstthe decisions of the
Association. • The proposals of the hauliers and the railway general managers, endorsed by the Government on the recommendation of the T.A.C., provided for setting up a Road and Railway Rates Tribunal. This will still be needed as a body to which traders can appeal if -they be dissatisfied with the charges asked. The Tribunal might also hear complaints from hauliers against any proposed rates agreement to which they were net parties.
The Railway Rates Tribunal has jurisdiction over the conditions of carriage of the railways, which are statutory and can be altered only by application to the Tribunal. The suggestion, therefore, is that the original Code prepared by the R.H.A., in so far as it embodies conditions of carriage applicable to all road, hauliers, should, in respect of those conditions, be open to appeal to the Tribunal by traders as a whole and by road hauliers.
Enforcing the Code of Conduct There must necessarily be some method of enforcing such a Code. The best would 'appear to be to endow the R.H.A. with powers like those of the Law Society. The Association would became Registrar of hauliers and clearing houses, but apart from paying the registration fee, hauliers would not be compelled to join the R.H.A., although registration would automatically involve compliance with the Code.
To deal with breaches, full members of the R.H.A, would elect a representative committee, mainly advisory, but, if necessary, admonitory, with a fair proportion of large, small, long-distance and short-distance representation.
It would be essential to decentralize preliminary investigations, by employing committees in each Traffic Area, also elected democratically. These would report if necessary to the National Committee. Only in the event of wilful and continuous breach of the Code would the latter be empowered to report the facts and present a case before the Licensing Authority at a public inquiry. This Authority would decide whether a licence should be suspended or even revoked. Right of appeal would lie from the Regional Authority to the Appeals Tribunal set up under the Road and Rail Traffic Act, 1933.
If rates are to be binding on hauliers and the observance of 'the Code to be enforced, equally clearing houses must abide by these. This will necessitate a form of licensing for clearing houses by the Licensing Authorities.
An important suggestion is that whilst operating permits granted during the war will need 'review after it, nevertheless, as a result of such review, a " claimed " or " basic " tonnage for each operator could be established, and this should not thereafter be in dispute if the operator tomplies with the statutory conditions, Applications to increase tonnage should be subject to hearing and objection.
The Board will not be prepared to support claims for reinstatement in the industry or the return of licences to operators who have sold their vehicles during the war through circumstances entirely within their control.
Unless post-war traffic exceeds the capacity of existing transport agencies, the entry of ex-Servicemen and others will present a serious 'problem, but the Board feels that this could well be left in the hands of the Licensing Authorities. If a new entrant can prove to the Authorities satisfaction that the demands of the district in which he proposed to operate justify a licence, it will be contrary to the policy of this democratic body to take a narrow view.