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London Cabs' Only Hope

17th April 1953, Page 28
17th April 1953
Page 28
Page 28, 17th April 1953 — London Cabs' Only Hope
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Which of the following most accurately describes the problem?

THE difficult position of the taxicab trade, particularly in the Metropolitan area, is emphasized in the report of the Committee on the Taxicab Service, issued last week as a White Paper.

The number of cabs in London has been steadily falling since 1950; it was 6,799 then and 5,437 at the end of 1952. whilst the number of new vehicles licensed annually dropped in the corresponding period from 962 to 132.

• There is an obvious danger that the only manufacturer of London-type cabs now remaining, who is at present producing five a week, will find such a figure uneconomic and stop the supply. To continue production the demand would, it is understood, require to be at least 1,000 per annum.

The taxicab is, however, quite an institution, one of great value to the public as well as to members of trade and industry, and even to the bureaucrats. Cabs are often the only means for transport immediately available in emergencies, and how else are travellers to convey themselves and luggage, the latter possibly heavy, to and from traffic terminals.

Users of these vehicles are inclined to complain bitterly at the fares charged, but much of the considerable increase in recent years has been due to the additional taxation on liquid fuel and the great cost of new vehicles which, with the 60 per cerit. purchase tax, makes the total about £1,319.

Hire-purchase Restriction Most owner-drivers—something like 75 per cent. —buy their cabs on the hire-purchase system. Even some owners of fleets do the same. Finance companies will' not, however, advance the amount of the purchase tax and the initial payment required is exceptionally high. One concession, given in 1952, is that the instalments may be completed within 30 months. instead of the reduced period of 18, but before the introduction of the Order of 1952 it was common practice amongst finance companies to accept a deposit of about 40 per cent., the remaining payments being spread over five years. The committee recommend that the London-type cab should be freed altogether from the present hire-purchase restrictions.

The post-war taxicabs are estimated to have a life of about eight years and, as they were not available until 1947, will be due for replacement from 1955 onwards.

According to the evidence of live proprietors who reported to the committee, since 1952 nearly 40 per cent. of their share of the receipts is absorbed in the purchase of fuel and of this. 2s. 6d. per gallon represents the duty, the wholesale price at the end of 1952 being 3s. 10,td. per gallon. It must be remembered that the fuel consumption of the London cab is high, mainly because of traffic conditions, few doing more than 16 m.p.g. It is, however, generally agreed that an engine of 14 h.p. is about the right size, giving sufficient acceleration without excessive consumption.

No Fuel Duty Rebate The London trade suggested a rebate of duty on petrol amounting to about Is. per gallon, the committee are, however, strongly against this as being unsatisfactory, expensive and likely to lead to fraud. In our view if there were to be any exemption or remission, it should apply to the whole of commercial road transport and not only to one section. In this connection, the committee have put forward the significant suggestion that the only foreseeable development which would immediately reduce running costs would be the general adoption of oil engines, if the present experiments prove successful. They'. propose, in addition, however, that London-type cabs should be freed from purchase tax. There is no doubt that this would encourage their sale outside the Metropolitan area and thus help the manufacturing position, but operating costs would not be reduced by more than about id. per mile.

It certainly seems therefore, that the employment of the small oil engine will be the only real solution to the problem of obtaining a reasonable financial return from the operation of cabs in London.

Tags

Organisations: Taxicab Service
Locations: London

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