Allegation of Uneconomic Rates: Figures to Be Quoted
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ALLEGATIONS that Ulster ferry Transport, Ltd., Belfast, might have quoted uneconomic rates to. obtain additional work as evidence of need for more transport capacity between Great Britain and Northern Ireland, resulted in customer witnesses being requested to disclose rates before the North Western Licensing Authority. Mr. F. Williamson, on Monday. The company applied, to transfer five articulated units from contract-A to B licence.
The British Transport Commission and Northern Ireland Trailers, Ltd., objected. Mr: James Booth, for the applicants, said that in 1953, at the end of the egg-rationing scheme, a group of packers in Northern Ireland formed Northern Ireland (Eggs), Ltd. Originally, the eggs were conveyed to England by British Road Services' ferry service, and ordinary sea services.
In 1954, Northern Ireland Trailers, Ltd., agreed to carry the majority of the eggs that were passing by the ordinary services, but as soon as this became. known to B.R.S., they refused to handle any more eggs, and until May, 1955. they were carried by Northern Ireland Trailers.
At that time, Northern Ireland (Eggs) took over six vehicles and 12 semitrailers, which they were using for their own transport, and the fleet was built
up to 12 vehicles: In June, 1956, it was decided to form Ulster Ferry Transport. This new associated company were granted contract-A Iicencts for the 12 vehicles and had operated them ever since. Eight special-A vehicles were purchased and used on general haulage.
Limited Intention There was no 'intention of going in for general haulage on this side of the Irish Sea. The application was purely in connection with the Preston-Larne ferry service. A grant would not affect hiring, as the sub-contracted vehicles would be used for additional work for existing customers.
The application was prompted by increasing business, a change in egg traffic by reason of the British Egg Marketing Corporation's changing from returnable wooden boxes to cartons (thereby depriving the contract vehicles of back loads), and a decision of the egg company that they did not wish. to continue with contract vehicles.
Questioned by Mr. J. A. Dunkerley, for Northern Ireland Trailers, Mr. D. M. Stanley, a director of the applicants, said it was a coincidence that when they lodged an application for an A licence in February, Northern Ireland (Eggs) had just started using Northern Ireland Trailers again following the Suez crisis, and that after withdrawing and applying for a B licence in July, the work was taken away when it was known they were objecting.
Mr. S. R. Cochrane, a director of the egg company, said in evidence that the eggs were the property of the British Egg Marketing Corporation until they reached Preston, when they were purchased by his company or remained in storage with the Corporation.
. After Mr. 0. H. P. Beames; for the 13.T.C., had submitted that the figures, as presented, were quite useless, failing as they did to distinguish between contract and special-A work, and including the cost of sea transport and haulage in Ireland, Mr. Booth said that although it would mean an analysis and breakdown of 'individual loads, they were prepared if the Authority agreed, to continue with the witnesses today, and prepare fresh figures in time for the next hearing.
Doubt on Legality Agreeing to this, Mr. Williamson said he would also require evidence as to the legality of the contract-A operations, about which there appeared to be con siderable doubt. Also, the C-licence position must be investigated.
After Mr. Dunkerley, cross-examining a trader witness,had asked for the rate quoted by Ulster Ferry when traflic was transferred from Northern Ireland Trailers, Mr. Booth contended that it should be made plain whether the questitm of uneconomic rates was being alleged before such questions were put.
Mr. Dunkerley pointed out that in the 1953 Act the Authority was intended to have regard to rates. It might well he that in order to get evidence for a B licence the applicants were taking goods back to Northern Ireland at completely uneconomic rates.
A representative of Bibbys, Ltd., Liverpool, said that the applicants were the only ferry operators who could compete with the ordinary sliippin companies on rates. Mr. Williamson ruled that the witnesses should write down both companies' rates for comparable services at the time of the change, The hearing was adjourned.