Phase 3: transport still subject to strict control
Page 25
If you've noticed an error in this article please click here to report it so we can fix it.
• Road haulage firms are to be covered by the Government Stage Three Price and Pay Code proposals in the same way as other service industries.
The Green Paper setting out details of the package, which increases the payrise limit to seven per cent and extends controls on prices, was launched by the Prime Minister at a press conference on Monday.
The proposals which are still subject to brief consultations with employers and unions will operate for the next 12 months.
The charges of private road haulage undertakings are to be subject to the provisions relating to allowable cost increases and to the limitations on net profit margins.
Allowable cost increases include higher bills for fuel, insurance, storage, maintenance and engineering services which are of particular concern to the road transport industry.
Strict control on prices and profits is to be maintained with nationalized industry continuing to make a major contribution.
Thus, charges of nationalized transport undertakings, Passenger Transport Authorities, local authority ' transport undertakings and transport companies owned by nationalized industries and their subsidiaries, will continue to be subject to strict control.
The Government has accepted the need to forego important trading surpluses and to finance substantial deficits, says the Green Paper.
The provision allowing extra payment for lower wage earners working "unsocial" hours could have some impact on bus operators outside London.
Charges for international freight and passenger traffic are outside the scope of control.
All references in the code to prices include charges, and all references to goods cover services, unless there is explicit provision to the contrary.
(The Price and Pay Code for Stage Three — A Consultative Document available from HMSO. Price 31p.)