The New Edition of "The Tables"
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This week "The Commercial Motor" Tables of Operating Costs have been published in revised fortn, taking account of the several variations in expenditure over the past year.
THE 46th Edition of " The Commercial Motor Tables of Operating Costs" has been published this week and is now available through newsagents, price 3s. 6d., or from the London office of this journal, price 4s. postage paid.
First published in 1911, these tables continue to be recognized as a standard source of reference on the costof operating commercial vehicles. They are used both by operators and a wide range of institutions and assOciations requiring an impartial assessment of operating costs.
Because road transport is a service industry it is inevitable that any changes in the structure and practice of trade and industry as a whole should have repercussions on transport operation, and ultimately, therefore, on transport costs.
Since the last edition of the tables was published a year ago 'several changes in the items of operating costs' have occurred, consequent upon the continuing post-war trend of increases in both prices and wages.
Despite strong representations to the Government by, the associations concerned with all forms of transport for a reduction in the exorbitant tax on a major item of their operating costs—fuel—none has been granted. Whilst the .Budget announcement of April 9 did not, in fact, increase the overall amount of tax which users of motor vehicles have to pay on every, gallon of fuel consumed, it proved disappointing to operators. This was because the announcement consolidated what was -previously considered .a temporary surcharge 'of -3d.imposed with the Little Budget of July, 1961. As a result the actual duty, on fuel is now 2s. 9d. per gallon.
Because the fuel tax at the time of publication of the previous edition of the tables was 2s. 6d, the whole of the fuel .costs in the new edition have been adjusted accordingly. Indicative of such increases, the cost per mile of the fuel tax alone' When it was 2s. 6d. per gallon was .3.:33d. at 9 m.p.-g. and I.43d. at..21 m.p.g.. The corresponding costs nOw that the
tax is 2s. 9d. per gallon are 3.67d. and 1.57d. per mile.
Another main item of operating costs which has increased during the past year is wages. Additionally, in the case of road haulage, the working week has been reduced from 44 hours to 42 hours, this lower figure already applying to passenger operation. As the reduction in working hours came into force on January 1 this year with the introduction of the Road Haulage Wages Order R.H. (72) (along with an increase in basic rates) it has been necessary to make provision for both these changes.
As.. inprevious editions of the tables, the item of " wages " includes the cost to the employer not only of the actual wages paid, but also the contributions which he makes to the graduated pension and National Insurance and voluntary employer's indemnity insurance. To allow for the cost of holiday S with pay an appropriate adjustment is made to the arnount'shown as the weekly cost of wages.
Resulting from these several calculations, the wages paid to the driver of the smallest goods vehicle included in the tables—a.5-cwt. van-'was £9 14s. 10d. in the 1961 edition and it is £10 Os. 6d. in the new edition. Correspondingly, the cost of wages for a driver of a 16-ton eight-wheeler has risen from k10 17s. 10d., to £11 4s. 641.
In -addition, although it is standard practice in the tables to show the basic standing costs as a total per week, it is appreciated that there will be occasions when operators might wish to calculatethe cost of a particular job as a combination of a cost per hour and a cost per mile, rather than a comprehensive total operating cost. Such occasions would arise when a substantial amount of waiting timewas anticipated. For this purpoSe it has been the custom to show standing costs as a total per hour as well as a total per week. In the new edition the cost per hour for goods vehicles is now obtained by dividing the Weekly total by 42 instead of 44.
Since the publication of the last edition there have also been increases in the wages of both passenger operating and
maintenance staff and corresponding adjustments have been made when compiling the new edition. Allowance has also been made for variations in the prices of fuel, oil, spares and vehicles.
A warning must be given to those making comparisons between the costs shown in the new tables and previous editions, particularly in respect of the apparently innocuous item of vehicle prices. Superficially it would appear a comparatively simple matter to total up the various prices of all vehicles of a certain type and so arrive at an average price. In practice this is far from being.the case. A decision has first to be made as . to whether the specification . of any particular vehicle is sufficiently similar to the others to be included in a particular group.' Some note also has to be taken of whether a vehicle is in .regular production, or merely remains on the price list as a result of a special order received some years Previously.
With each successive revision of the tables the actual inclusion of a particular vehicle in any one group has to be reviewed irrespective of whether there has been any price change. A further factor which has had an increasing influence in recent years is the growing number of mergers which have taken place within the commercial . vehicle manufacturing industry. Such mergers may have the effect of either varying or curtailing previously existing ranges of vehicles.
Moreover, such adjustments in the ranges of vehicles have, not unnaturally, occurred .where competition is fiercest, that is to say among the popular models. Therefore, in. any given group of vehicles reduction in the total number included more oftenthan not takes plate at the upper price range. When this does . occur the average .price for the, group in the. tables will be less than the previous year, even though there have been no actual price reductions.
Such variations in the ultimate average price of a vehicle in each group can reflect on three items of operating' costs — intereSt, insurance.arid depreciation. In. the case of insurance costs; variation in • prerinuins Would be dependent on the excess -value Of a vehicle over a stipulated. figure. Interest charges would directly _reflect the cost of a 'vehicle and are calzulated in the new edition at a rate of 5. per cent.
The -cost of depreciation; however, is dependent not only on the' average _price of the vehicle when new; but the estimated
mileage life and ultimate resale value. • Another change introduced in the new edition of the tables may also . seem to, provide apparent anomalies in comparison with earlier editions of the underlying reason for this Particular
change is not fully appreciated. Commencing with this 1962 edition, it was decided to show the minimum charges per mile, as -well as those per hour, in pence, calculated to two places of decimals. This has been done to achieve greater accuracy, bearing in mind that some of these items, and particularly the charges per mile, may often have to be multiplied by high mileages with corresponding increases in any basic inaccuracy.
With this particular change, 'however, a few minor cases Of apparent anomalies will inevitably arise. Thus previously,.and particularly after the farthing was declared no longer legal tender, it was necessary to upgrade amounts fractionally over a' penny to. the next halfpenny. Thus in a hypothetical case, an actual cost per mile of 5.01d. might previously .have been shown as 5-1d. But if the total overall increase .from 1961..to 1962 is 0.48d. (making 5.49d. per mile in all) then from figures actually published in the two successive editions of the tables there would seem to be an apparent decrease, although actually this has not been the case.
In Table Eight, devoted to the operating costs of coaches, there has been included an additional vehicle, the 44-seater oil-enginecl vehicle, making seven coaches in all. In contrast to the designation of goods vehicles, the seating capacity. of passenger vehicles is to some extent nominal, being -varied within limits to individual operators' preferences. It is aSsumed that the 44-seater coach has a chassis in the quality range, for which reason it will be .noted that the interest .charges :are substantially higher than those shown for the 417seater.
In view of this addition the opportunity has bee.n taken to delete from the group of vehicles used to provide the average price -for the 41-seater in the 1961 edition of the tables, those based on the quality-produced chassis which. are now included under the heading of 44-seater. As a restilt the average price for the 41-seater shown in the new edition is actually lower than the previous year.
As with larger passenger vehicles, determining 'the iline of demarcation between the various sixes of car is tosome extent arbitrary. With the 1962 edition it has' been decided to "use the nominal description of 1,000 c.c., 2;000 c.c., 3,000 C.c. and 4,000 c.c. rather than 'attempt a more specific definition of engine capacity, which would not in any cast be applicable to all vehicles in any particular group. In addition to changes in costs which apply to other tables, there 'has been some adjustment in the resale value of cars, resulting in .a variation of
depreciation costs. S.B.