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A.E.C. Carrying Excessive Stocks : Government to Blame

12th December 1947
Page 33
Page 33, 12th December 1947 — A.E.C. Carrying Excessive Stocks : Government to Blame
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Which of the following most accurately describes the problem?

Keywords : Politics

BECAUSE of the uncertainty and L./irregularity of supplies, the Associated Equipment Co., Ltd., is having to carry a larger stock of material stores

• than is necessary in normal circumstances. This need has caused a drain on the company's resources and has compelled it to have recourse to outside sources of finance. It has also necessitated large increases in staff to do progress work.

Mr. C, W. Reeve, C.B.E., chairman of the company, explained these facts at the annual general meeting on Monday, "Now at the root of these difficulties," he declared, "is the horde of officials employed under Government planning in watertight compartments at relatively low levels, and by their influence upon our affairs, creating not merely jobs for themselves, but necessitating the creation of innumerable other jobs in industrial organizations in order to keep pace with the spate of regulations, rules, changing quotas and policies with which we are continually faced.

" In spite of all the pronouncements by Government spokesmen, in spite of repeated representations made through our trade associations, we have still to learn what proportion of our-passengercarrying vehicles we must reserve for the home Market and what numbers and what types of heavy goods-carrying vehicles we must retain in the United Kingdom.

" It is obvious, therefore, that until we are told these facts, we cannot know what the proportion of our production destined for abroad can be, nor do we know precisely what kinds of material and in what proportions we are to obtain these materials from our supplies. We are stilt contirming our efforts to extract authentic guidance, but Government itself seems to be without the data upon which alone its own top planning can take place, because of the claims of one Government department as opposed to another."

To enable the company to export vehicles at a given rate, manufacturers of raw materials and components should be ordered to supply for export materials at a similar rate.

Despite all the difficulties, the value of A.E.C. exports in the period ended September, 1947, was five times greater than in 1938.

Mr. Reeve was extremely critical of the home regulations which require different vehicles to be made specially for export. He referred to the " disinclination " of the Licensing Authorities to authorize the use of buses 8 ft. wide.

He also said that a two-axle bus, 30 ft. long, could be made as safe as one of similar length but having three

axles. If this concession were permitted, costs of transport would be reducecloand there would be savings in materials.

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