PM offers glimmer of hope
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to CBI• THE harsh Road Haulage levy, the new system of drivers' hours and the quantity licensing proposals were all strongly criticized by Confederation of British Industry representatives at a meeting with the Prime Minister at 10 Downing Street on Wednesday.
Mr. Wilson—accompanied by Economics Minister, Mr. Peter Shore and Transport Minister of State, Mr. Stephen Swingler—was told by the President of the CBI, Sir Stephen Brown, that the proposals in the Transport Bill would raise road transport costs enormously and damage the economy.
As a result of the meeting the Prime Minister agreed that the abnormal load tax may be dropped because it may adversely affect development areas. He also agreed to ask the Minister of Transport to look again at the question of drivers' hours.
Mr. Wilson stood firm on the proposed road haulage tax: he told the CBI that this revenue is required to finance the proposed road-building programme.
Sir Stephen, accompanied by the chairman of the CBI transport steering group, Mr. John Townsend, and the deputy director-general, Mr. John Whitehom, made these points: • The levy, the road haulage charge and the abnormal loads charge should be dropped for the time being at least, because industry is being urged to get the full benefits from devaluation and to keep costs down. Yet on the Government's own admission the levies will take some £33m from the road haulage industry, and will increase haulage costs.
• Drivers' hours will add 15 per cent to the industry's costs. While the CBI wants to see better road safety it is not convinced that the present regulations are detrimental to road safety or particularly out of line with the Continent. If the new proposals go through, there should be firm agreement with the unions on productivity, so that costs are not increased. The CBI believes that the proposals are likely to reduce drivers' earnings, and this will inevitably bring wage claims.
• Quantity licensing will use legislation to transfer traffic from road to rail. While the CBI feels that it cannot persuade the Government to throw out the proposals, the distance limit—if one has to be accepted—should be raised from 100 to 150 miles. The 16-ton limit should be reconsidered because it might lead to the operation of many more lorries below that limit.
• A more flexible attitude should be taken towards road transport.