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The Levy and the Transport Fund

15th May 1953, Page 54
15th May 1953
Page 54
Page 54, 15th May 1953 — The Levy and the Transport Fund
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A N annual charge, known as "the transport levy," is to !A be made in respect of vehicles of over II tons unladen, and described in a Schedule to the Act, used on public roads in Great Britain on or after January 1, 1954. This is for the benefit of what is to be known as the "Transport Fund." The whole of Sections 12, 13, 14, and 15 and the Second Schedule are concerned with the levying and administering of this charge. The main purpose of the levy is to make good the loss to the Commission involved in disposal of the existing road haulage undertaking.

The levy will be charged for the periods covered by licences under the Vehicles (Excise) Act, 1949, and the amount payable is to be calculated in the first instance by multiplying the unit charge, which is to be 13s. 6d. until December 31, 1955, by what is known as the "appropriate multiplier," which is calculated by reference to the Second Schedule. The levy is then to be the amount by which the annual duty payable is increased by this multiplied amount.

After 1955, the unit charge will be for Periods of three years, and will be a sum fixed by order of the Minister before the beginning of each period, or will be the same as that for the preceding period if no order is made. If the Transport Fund appears sufficiently in funds in the last year of any period to meet all eventualities, the Minister must order the cessation of the levy, or he may order that this shall cease to be charged after the next year or two years where it appears that the Fund would be sufficient at those stages [S. 12 (3) and S. 15 (1) (2)1. The following table shows the effect of the levy:— The Minister may order the winding up of the Transport Fund at the same time or subsequently to making an order abolishing the levy. If such an order is made, the assets of the Fund are to go to the Commission in full satisfaction of payments which would have fallen to be made from the Fund [S. 15 (3)].

The levy will be collected through the existing makhinery used for the collection of licence duties under.the Vehicles (Excise) Act, 1949, but the proceeds are to be paid to the Minister by the licensing councils concerned. Vehicles of Government Departments, except those of the three Services, are not exempt from the levy but the amount payable is to be calculated yearly for each department [S. 12 (5) (6)].

Purpose of the Fund

THE Transport Fund is to be under the Control and management of the Minister. Out of it are to be paid the following items:—

(1) The salaries and expenses of the Board; (2) "The road haulage capital loss," as defined below; (3) nal, for loss from disturbance suffered by the Commission while disposal is taking place; (4) The amount which the Commission have to pay their employees by way of compensation for foss of employment, etc. (See pages 454-455).

The " road haulage capital loss" is defined in the Third Schedule and means the amount by which the aggregate of the prices received from the sale of transport:units or other property falls short of the total of the following five amounts:— (a) The aggregate net value of such property as shown in the Commission's books at the time of sale or transfer to a company, allowing for depreciation up to that time;

(b) the Commission's expenses in connection with such sales or transfers; (c) such amounts as may be just to compensate the Commission in respect of rights or liabilities paid for before any sale,.the benefit of which has not, or has only partially, accrued to the Commission by the time of such sale; (d) the valuation of goodwill of the existing road haulage undertaking, except in so far as it may have been already taken into account under one of these other heads; (e) the amount represented by losses incurred by the Commission in respect of contracts entered into by them for the purposes of the existing road haulage undertaking, and resulting from the disposal of the property, except in so far as such losses could have reasonably been avoided by them.

The word " price " in relation to property sold as transport units includes all sums payable on such sales by the purchaser to the Commission, irrespective of whether the sums are ascribable to property or to other rights obtained by the purchase, e.g., goodwill is thereby included.

" Net value" [paragraph (a) above] means value after deduction for depreciation as normally provided for in the books of the Commission.

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