Planners' nightmare
Page 25
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A drastic scaling down of the NFC's parcels companies is' foreshadowed by .the Prices and Incomes Board whose report "Costs, Charges and Productivity of the National Freight Corporation" was published this week. National Carriers Ltd and BRS Parcels Ltd between, them have 289 depots, 13,500 vehicles and 35,000 employees. Workers of all grades will be sickened to learn that the combined resources of the two companies -could well need to be reduced by close to one-half by 1974".
Rate increases of around 10 per cent prompted the reference to the P113. The higher charges are accepted as necessary: perhaps stretching its terms of reference, the RIB has sensibly looked at the longer-term problems of the Corporation, thereby giving its new chairman, Mr Dan Pettit, a \AA:irking brief. The Government is bound to look closely into the implications of a politically eXplosive report. There are repeated references to the need for more detailed —and more intelligent—planning of the future strategy and resources of the NFC and its constituent companies. The contraction in the parcels market by 4 per cent a year between 1965 and 1969 was well known. Increased corn-, petition following the abolition of licensing must have been considered by management. On what grounds, therefore, did NCL plan to absorb its surplus capacity, estimated at 20 per cent, in the next few years? Was it whistling in the dark? If NCL's traffic declines by 20 per cent by 1974 a 60 per cent reduction in its resources would be called for.
BRS Parcels, whose methods are said to be twice as efficient as NCL's—though not, strangely, in vehicle scheduling—may have to face a 30 per cent reduction of its depots, vehicles and employees (on the assumption that productivity rises by 10 per cent and traffic falls by 20 per cent). How much of the company's heavy investment in new depots will prove to be justified on this forecast?
Somehow the NFC and its, forebears failed to undertake comprehensive market and corporate planning. There will be another planning boob if the Post Office and Rail Express Parcels complex are not brought into the necessary overall review of State parcels facilities.