ADVICE ON TRANSPORT PROBLEMS
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aaaaalla s• ••1111•00000 • • • s By S. Buckley, Assoc Inst T
New. Cost Tables
qE,LOOM in the annual revision of The Commercial " Motor Tables of Operating Costs has it been necessary to increase so many of the ten items which go to make up the total cost of operating a vehicle. Seldom, too, have there been increases of the order of 50 per cent as applied to motor vehicle licence duties, resulting from the increase announced in the Budget last April. As a result there are substantial differences in this new edition which is now available through newsagents, price 5s., or from the London office of this journal, price 5s. 7d. postage paid.
The actual cost data is contained in nine tables. The first six tables are devoted to goods vehicles and of these four relate to rigid vehicles and two to articulated units. The range of carrying capacities starts as before at 5 cwt., but with the heavier gross weights now permitted by the amended Construction and Use Regulations, the top limit has been increased to 20 tons capacity. Comparable costs are shown for petrol, oil or electric propulsion.
Tables 7. 8 and 9 contain castings appropriate to passenger vehicles—buses, coaches and cars respectively. Here again. alternative castings are given for variations in both size and means of propulsion.
In addition to giving costings for the larger vehicles now legally permissible, an innovation this year is the inclusion of detailed operating costs for a 5-ton van, such as is componly used for parcels and retail delivery, or alternatively furniture removals, and also a 7-ton tipper.
In addition to the basic cost data, useful allied information is included for ready reference. Three pages are devoted to addresses of Licensing Authorities, trade associations and similar bodies concerned with road transport, not readily available elsewhere in such compact form at a comparable price.
For the benefit of small operators who make up a large proportion of the road transport industry, two articles are included giving advice on systematic cost accounting and lyre recording.
To facilitate adjustment of the standard Tables of Operating Costs to suit the individual circumstances of operators an extract is provided from the current Road Haulage Wages Regulations (RH 82) showing the basic amount payable for the various categories of drivers as applied in the two areas (London and outside London). Corresponding wages payments, inclusive of overtime. are then given in respect of 50-, 55and 60-hour working weeks. Alongside this there appears a 10-year comparison of costs (1956-65) which will be particularly topical with prices and incomes becoming more and more a national issue.
Because fuel is such a major item of running costs and because there can be several reasons for alternative costs applying to individual operators, a fuel ready-reckoner is provided ranging from 6 m.p.g. to 29 m.p.g. and from 4s. 3d. to 5s. 3d. a gallon (adjusted to allow for the November addition of 6d. to the fuel tax, making 3s. 3d. in all). Dealing now with the several alterations—all increases— which have been necessary in compiling this new 1965 edition, the increase on the first item of standing cost— licence duty—has already been mentioned, namely 50 per cent. Then that major item of standing costs—wageshas once again increased.
Actually there have been two new RH Wages Orders since the last edition was compiled—RH(80) and (82). The first of these, which. came into effect on November 23 last year, reduced the number of area grades from three to two and also reduced the number of hours (from six to two) for which overtime was payable at time and a quarter, , although the basic rate remained the same. Now, with the publication of RH(82) operative as from June 9, the basic rates have also been increased, this time by 6 per cent, and corresponding adjustments were therefore necessary in this new edition. But the cost of wages to the employer also includes the amount of national insurance contributions payable by him and these also were increased to 12s. 11d. per employee on March 29 this year.
The cost of the adjustment to permit holidays with pay is included in the total amount of wages shown in the tables and this adjustment is itself increased by the raising of the basic rate of pay.
Wages paid to drivers and conductors of passenger vehicles have also been increased since publication of the last edition and corresponding adjustments are made in tables 7, 8 and 9.
There have been substantial increases in the amount of rates collected by local authorities and the corresponding items in the tables have been adjusted by the addition of 10 per cent. The item of insurance is becoming increasingly difficult to estimate as a standard cost because underwriters more and more are adjusting their premiums according to the accident record of individual operators. But in the absence of a national overall increase of premium no adjustment to this item has been made.
Undoubtedly the financing of new vehicle purchase is becoming more difficult and expensive for small operators. Not only is the Bank Rate relatively high, but additions to this are commonly made relative to the standing of individual clients when commercial vehicle purchase is under consideration. Accordingly a rate of interest of 74 per cent is applied in this new edition, which even then is substantially lower than the full interest charge included in normal hire purchase.
The increase incorporated in compiling the running costs include the addition of 6d. to the fuel tax as already mentioned. The cost of lubricating oil and tyres have both been increased by approximately 4 per cent, whilst maintenance-inclusive of both increases in mechanics' wages and the cost of spare parts—has increased by around 6 per cent But to offset this slightly the intervals between maintenance have been increased and accordingly an addition of 5 per cent is allowed.