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ZHA costs 'too cheap
Page 5
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TRONG support for the Price lommission's investigation no road haulage charges was oiced by Ken Rodgers, RHA ational vice-chairman, when le addressed a meeting of nore than 100 members of the tHA Eastern Area.
The meeting, held at Stow-. narket, Suffolk, was called to tear Mr Rodgers' views of :apital fund of a vehicle re)Iacement.
Mr Rodgers said that by refn-ring the road haulage indus.ry to the Price Commission, he Government would obtain mbiassed confirmation of the )roblems facing the industry n trying to generate sufficient -evenue to finance the necesslry replacements of vehicles.
"The Price Commission probe will endorse the RHA's claim that the services of road haulage are, in general, too cheap, and that operators cannot obtain sufficient revenue to cover increasing costs, particularly the alarmingly high costs of replacing their vehicles, the prices of which have increased by up to 170 per cent in the past five years," he added.
In the ensuing question and answer session, a haulier confessed that prior to hearing Mr Rodgers speak at this meeting — particularly on the matter of the true cost of future vehicle purchases — he had no idea the accounting system now used in his business could do more harm than good in making adequate provision for vehicle replacement.
Several hauliers had insisted their auditors attend the meeting to hear Mr Rodgers.
It soon became clear that these auditors, as financial advisors, would have to have a radical re-think on the accountancy systems now used by their clients.
Support for Mr Rodgers in his efforts to bring home the truth on vehicle replacements costs has come from an unexpected quarter.
Mr Rodgers has confirmed he has received a letter from the managing director of Saviem UK, saying he was delighted that someone had at last "had the guts to stand up and spell out the facts of this problem."