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RTITB slashes haulage

16th February 1973
Page 18
Page 18, 16th February 1973 — RTITB slashes haulage
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Which of the following most accurately describes the problem?

points value

BLOCK GRANTS WILL BE INCREASED TO 50 pc; LEVIES REDUCED; POINTS VALUE DOWN BY £1.26

from our industrial correspondent

• For the third successive year the Road Transport Industry Training Board is planning to reduce its training levy rates. At the same time it is proposing that there should be different rates of levy applying to the different sectors of the industry which fall within its scope.

The proposals are subject to approval by the Secretary of State at the Department of Employment. The Board estimates that its "points" values for 1972/3 will also be reduced. A passenger point for the current year is estimated at £1.50 as against £1.52 last year but the haulage sector point has been reduced by £1.26 from £1.51 to 35p.

A spokesman for the Board told CM that the reason for the reduction was to encourage a more comprehensive training plan within companies and that greater emphasis was now being placed on the block grant which has to be increased from 25 per cent to 50 per cent of the levy which an operator pays. He will in addition receive 35p for every individual training point he collects during the training year.

The new levy if approved by the Secretary of State is not due to be paid until December this year. The Board believes that the differential levy rates for each sector are a logical extension of the different grant conditions which apply in each sector. Since grants have been adapted to meet the specific training needs of a sector, the Board considers that the levy should be adjusted to keep both grant and point value at a level where incentive to train is maintained.

The lower rate for exemption from levy for smaller companies remains at £7500 based on the company's payroll except in the agricultural machinery sector where the exemption level has been raised to £10,000.

The furniture removal operators appear to have come off best in the restructured levy proposals. In the lower payroll bracket their levy is being reduced from 1.4 p.c. to 0.7 p.c. and in the higher bracket, that is over £30,000, from 2 p.c. to 1.1 p.c. The remainder of the road haulage operators are being reduced from 1.4 p.c. to 1 p.c. in the lower bracket and from 2 p.c. to 1.7 p.c. in the higher bracket.

Driving school employers are to be entirely exempted from levy irrespective of size but, of course, this means that they will not qualify for grant during 1972/3 training year.

The levy order is expected to be laid before Parliament in July and if this happens assessments will be sent to employers at the end of the same month but will not be payable until December 1.


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