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Can Present
Page 76
Page 77
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MUNICIPAL TRANSPORT RATES
be Justified ?
THERE has been an improvement, of late, in some quarters, in the rates paid for municipal haulage. This is due to a variety of causes. The Commercial Motor has for some years periodically drawn attention to the uneconomic prices at which municipal
haulage is carried out. Associated Road Operators and the Commercial Motor Users Association have also, here and there, been able to improve matters.
There are some outstanding successes due to direct action by the associations. In one case, in particular, a rate of 2s. Id. per hour was increased to 4s_ 8d. In another, 22s. 6d. per day was raised to 27s. 6d,
Haulage contractors themselves are coming to appreciate what rates should be and this is an important factor. Lastly, municipalities are beginning to realize that it is not good policy for them to accept the lowest tender for haulage, without giving any consideration to the question whether the rate quoted is economic.
An outstanding example of this tendency is the attitude of Portsmouth City Council. At this time last year, the council was offered 3-ton tipping lorries at 32s. 6d. per day and 30-cwt.
tippers at 24s. 8d. per day. • Wheii these rates came before the city council, some of the members— c26
those who happened to have some knowledge of road transport and its costs—pointed out that it was impossible for any profit to be made on these rates if fair wages were paid. It was suggested that, in future, only reasonably economic tenders should be considered.
In apportioning the blame for the prevalent tendency to stabilize municipal rates at an uneconomic level, both hauliers and municipalities must take equal shares.
It is the hauliers themselves who have brought prices down to the present low level by a steady process of rate-cutting. Many municipal authorities have taken the short-sighted view that it is their duty to place the work with the haulier whose tender is lowest.
In that policy they have clearly overlooked another essential duty of a modern civic body, namely, that no contracts should be placed unless there is surety that the labour employed will be remunerated at a fair rate. It is, indeed, the case that nearly all cut-rate municipal haulage is possible only be cause the operators pay poor wages and probably break the law in respect of speed and hours of labour.
On this point, an interesting case is reported by the Trades Union Congress General Council. Some time ago. Rutherglen Town Council . approved tenders for a housing scheme, including a particular price for plaster work. Objection was raised by some members of the council on the score that the firm of plasterers had, on a previous contract, violated the fair-wages clause and, moreover, their work had been defective. The town council, nevertheless, decided to accept the tender. The matter was brought to the attention of the Ministry of Health, which withdrew its approval of the tender and investigated the matter direct. The Ministry suggested that where there is some difficulty in ensuring that the fair-wages clause is being observed, it is advisablie to insert in contracts a provision insisting that contractors should keep proper books showing names of workpeople, wages paid and hours of labour. Moreover, the local authorities should be given access to these books.
What is sauce for the goose is sauce for the gander and a condition which can be made to apply to plasterers engaged on municipal work can quite well be applied to haulage contractors.
It is one of the simplest things in the world to calculate a fair rate for this class of work. The basic figures are the time and mileage rates in The Commercial Motor Tables of Operating Costs.
A schedule of rates has been calculated on that basis and appears herewith in Table I. An average mileage of five per hour has been assumed to apply, this having been found from experience to be fairly widely applicable. The rates in Table-I for vehicles engaged in work in urban areas have been arrived at in the following simple manner :
The figure for charge per hour given in The Commercial Motor Tables of Operating Costs has been taken and to it is added five times the amount set down in those Tables for cost per mile. The total thus obtained is further increased by a 10-per-cent, allowance to cover contingencies; to provide, for example, against the probability that there will be many days when the council will have no work for the vehicle on contract and it will, therefore, have to stand idle.
Allowance has to be made for the fact that in rural areas wage rates and one or two other items of expense are lower than those which prevail in the larger towns. That is the reason for the second half of Table I, where a set of rates is quoted somewhat lower than those in the upper portion.
To allow for conditions of operation which are likely to involve an average mileage in excess of five, the figure X is provided in Table I. It is the amount to be added to the hourly rate for each mile over 5 m.p.h. To be able to make proper use of this figure requires the haulier who is quoting to have some experience of this class of work.
In this connection another point arises. It is sometimes the case that, whilst the rates per day and per hour are quite reasonable, provided that the service is of the kind normally associated with municipal day work, the operator is sometimes requested to make some long journeys.
Cases have been brought to my notice of haulage contractors on day work of this description being asked to run for 20-30 .miles to some distant
quarry for loads of stone. That is 'manifestly unfair and haulage contractors should see that in the contract there is some provision made for an additional alloWance, in such circum-stances, on the basis of the figure X in Table I.
Tables II and III give examples of actual rates which are being paid for municipal haulage in various parts of the country. The most astonishing
thing about these rates is the wide variation, although this is more evident in the case of daily rates (Table III) than hourly charges. That any man should be expected to operate a 1-ton lorry for 16s. per day or a 2-tonner for
18s. 6d. per day, which is the rate pt by Yarmouth Council, seems to beyond belief.
The two sets of figures relating Bexhill, which appear in Table II, a interesting as showing a tendency I rates in some districts to be still ft ther depressed. In the case of 2-to 4-ton and 3-ton vehicles, the rat paid in 1935 (the upper line Of figure were 6d. higher than those of 1936 (t lower line), notwithstanding the fa that the cost of operation of all typ of commercial vehicle has, during t past three years, shown a tendency increase. It is curious to note tha on the contrary, Bexhill had to pay 3 more for its 4-tonners in 1936 than : 1935.
The absurdity of the whole situatic is shown in relation to the figures fro. Dewsbury, where tenders from haulie have been accepted at rates varyir from 3s. 2d. to 3s. 7d. per hour for 30-cwt. lorry. Actually, the ra should be not less than 4s. 6d.
The figures in Table IV are high: interesting. They are actual costs f■ a haulage contractor in a large city i the Midlands. It will be noted that 1 regards a fair charge as being 5s. Id.
Actually, on his figures, 58. Id. pi hour is insufficient, because 10 pi cent, profit on work of this kind is in enough. It ought to be at least I per cent., which would bring the rai up to 5s. 4d. It is worth while to con pare this sum with the figure in Tab I for the hourly rate for a 2-tonne which is there set down as 4s. 10d.
In making the comparison, howeve: regard should be had to the fact thE this Midlands owner covers an averaf of 7 m.p.h., which means that, so fa as the figures in Table I are concernec 8d. (for the two extra miles) should h added to the 45. 10d., .bringing th rate to 5s. 6cl.
The problem as a whole is compi cated by the fact that there is a ter dency for municipalities to purchas their own vehicles. This is an evei present fear in the minds of man haulage contractors, who might othet wise be inclined to stiffen their rateE I find it difficult to appreciate th attitude of mind of a man who i willing to work for no profit.
It should be realized that neithe municipalities nor ancillary users ca: go beyond a certain fairly well define limit in operating their own fleets There is bound to be at all times . sufficiency of extra work which muni cipal authorities or ancillary users LIMB
hand over to hauliers, S.T.R.