Levy on A, B and C-Licensees
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Whilst Affirming the Government's Belief that Road Haulage Should be in the Hands of Private Enterprise, the White Paper on Transport Proposes that Operators Should Compensate the Railways for Loss of Traffic
ALEVY on road haulage designed to yield £4m. per annum is the principal proposal contained in the White Paper on transport policy presented to Parliament last week. It will be to cover the loss to the British Transport Commission consequent upon the sale of the Road Haulage Executive, and to balance loss of railway earnings because of the expected increase in the diversion of traffic to the roads.
The R.H.E., states the Paper, should be divided into "operable units" and be offered to the public for disposal by open tender. Provision will be made for greater latitude for granting new carriers' licences, and purchasers of units to be marketed can be expected to pay for the trading rights and opportunities which go with them.
The powers of the British Transport Commission to formulate area road passenger transport schemes will be repealed, and the working of the road passenger licensing system is to be reviewed.
Regarding the railways, greater autonomy will be given to areas which may follow the outlines of the present regions. Within prescribed limits, the railways will be free to adjust charges with subsequent approval by the Transport Tribunal subject to the over-riding powers of the Minister of Transport.
The White Paper states that the Government had been considering the situation resulting from the passing of the Transport Act since it took office. In its view, the Act had not achieved, nor was it likely to achieve, its purpose to secure an "efficient, adequate economical and properly integrated system of public inland transport."
Integration of road and rail facilities into a co-ordinated whole had made little progress, and even if the effort were practicable, it would result in a huge unwieldy machine ill-adapted to meet with promptitude the varying and instant demands of industry.
R.H.E. Failure
Experience showed that the R.H.E. could not give speedy, individual and specialized services as were afforded by free hauliers before nationalization. Efforts made by the B.T.C. to promote area passenger transport schemes had provoked opposition in so many quarters that it was clear that they would have little chance of surviving the procedure provided in the Transport Act for implementing them.
"A positive approach is needed under which, with the minimum of centralized control,_the transport system may be stimulated to adjust and develop itself in accordance with public needs, and may regain and increase the flexibility without which the demands of trade, industry and commerce cannot be adequately met," says the Paper.
It continues to state that road haulage had in the past been restricted largely in order to avoid excessive competition between road and rail services. The process had now gone so far as to deprive trade and industry of the full advantages of modern road transport and had driven traders to provide their own facilities to an extent which would not otherwise have occurred.
The Government was convinced that the R.H.E. should revert to private n6
enterprise, and for this purpose it was proposed that it should be split into operable units, including a suitable proportion of small units, for sale to the public. Units purchased would be granted A licences and freed from the
25-mile limit. This restriction would eventually be wholly removed, but in the interim period the existing permit system would be continued. To allow road haulage to play its appropriate and expanding part in the transport system, provision would be made for greater latitude in granting of carriers' licences where need for a fuller and more convenient service was shown.
" Since the goodwill of the former businesses out of which the R.H.E. was formed has substantially disappeared, its undertaking is unlikely to be sold at the price at which it was bought. On the other hand, the units to be marketed will be going concerns and purchasers can be expected to pay for the trading rights and opportunities which go with them," it is stated.
National Asset
As a national asset, the railways could not be allowed to decay. The present excessive centralization must, however, be reduced by giving greater regional autonomy. Areas would continue to constitute single entities for financial purposes and for the control of charges. Scotland would be formed into a separate area. The Paper holds that the existence of distinct areas should encourage healthy rivalry and give greater scope for initiative than was possible under a single administration.
It was not intended that the area organization should be set out in detail in the Government's forthcoming Bill. but to be dealt with in a scheme which the B.T.C. would be required to submit to the Minister for approval. Greater freedom would be granted to the Commission to vary charges -schemes so as to improve the railways' ability to corn
pete with other forms of transport. Within prescribed limits, the railways would be allowed to increase or lower charges with subsequent approval by the Transport Tribunal subject to the supreme powers of the Minister.
These proposals, it is stated, will affect the finances of the B.T.C. in two ways. The sale of the R.H.E. was likely to involve a loss to the Commission, and the expansion of road traffic. which would undoubtedly result in further transference of traffic from rail to road, could not be offset by economies in railway operation, including the closing down of redundant capacity.
Exemption for Small Vans
The Government proposed that compensation for the losses arising from these two causes should be provided by a levy on goods vehicles, including Clicensed vehicles. A large proportion of the goods now carried by road was under C-licences and ancillary users could not reasonably expect to be exempt from a levy applying to professional hauliers. The levy would not apply to small local delivery vans.
The levy would be designed to yield initially an annual sum of L4m., which would enable the loss on the disposal of the R.H.E. to be amortized over a period of years, and would include some provision for loss of railway revenue arising from further transference of traffic to the road. The extent of these losses could not be measured until the changes authorized by the proposed Bill had taken effect, and the levy would therefore be adjusted at intervals, say, of three years, by the Minister after consultation with the Transport Tribunal.
No Burden
When the loss from the disposal of the R.H.E. was known, one element in the levy would be definitely ascertainable, and the period for writing-off the loss could be determined. The remaining element in the levy need be increased only to the extent t;hat the roads attracted extra traffic from the railway and would never therefore be an excessive burden upon road transport, and in view of the large number of vehicles concerned its incidence upon any individual operator would not be heavy.
The levy would be confined to the purposes stated, and would not be used for other purposes such as making good the loss of railway revenues because of trade recessions, or the failure by the railways to effect economies.
The White Paper deals briefly with road passenger transport. It states that the powers of the B.T.C. to make area schemes would be repealed, and that the working of the road passenger licensing system would be reviewed at an early opportunity.
In its conclusion, it states that minor matters such as bringing the B.T.C.'s goods vehicles within the statutory licensing system would be included
when amending legislation was framed. The effect of the proposals would be to re-establish road-rail competition in long-distance transport to encourage efficiency. The railways would be protected by means of the levy from losses of revenue because of increased road competition. Customers would get a better service and the distribution of traffic between 'road and rail would he determined by the advantage which each had to offer. •
In .the opinion of the Government, this should lead to better and cheaper transport than could possibly. result . from the "integration" that as contemplated by the Transport Act, whioh would have tended• to subordinate: the needs of the trader to a plan, rather than to adopt transport to the trader's needs.
Leakage Inquiry
Before the White Paper was presented to Parliament, Mr. Herbert Morrison raised the question in the House of Commons concerning a leakage of information about its contents. He read an extract from a national evening newspaper which had quoted a technical journal, the political correspondent of which was said to have disclosed certain information. Mr. F. F. Fowler, national chairman of the Road Haulage Association, was also quoted by the newspaper as having given details of the Government's policy.
• The Prime Minister told Mr. Morrison that every inquiry into the sources of the leakage would be made, and alsistance from any quarter would be welcomed. The following day, Mr. Churchill could give no further information to Mr, Morrison.
The White Paper, which is entitled "Transport Policy," is available from RM. Stationery Office, price 3d.]