Productivity and profits key questions
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THE Brains Trust session covered a wide range of topical problems. With the new chairman of the RHA, Mr. Noel-Wynn, in the chair supported by such well-known personalities as 'Mr. S. C. Robbins (chief marketing manager British Railways Board), Mr. R. H. Farmer (chairman and managing director Atlas Express Ltd.), Mr. Charles Klepper (editor, Modern Transport) and Mr. H. E. Osborn (comptroller to the Transport Holding Company) in support, a lively session was guaranteed.
Productivity aspects were stressed and a number of questions referred to the declining profitability of the industry in the past year.
Some questions were concerned with the effect of the quantity licensing proposals with particular reference to the heavier vehicles subject to special authorizations and the increasing competition professional hauliers would face from newcomers driving vehicles not exceeding 30cwt.
The presence of two representatives from State transport ensured a number of questions relating to the efficiency and profitability of ultra-large transport organizations, • and such old chestnuts as the need for demurrage to be generally applied were dealt with.
Mr. R. J. Carpenter (Western area) asked whether the objections voiced by many lorry drivers to the fitting of tachographs were tenable.
Mr. Farmer said there was considerable sympathy for the attitudes of drivers but they were wrong in thinking other industries had no comparable supervision and controls. Certain operators, particularly long-distance hauliers, believed that the fitting of tachographs would be fair to the drivers as well as the employers. A new approach to productivity was necessary although tachographs might not assist firms like Atlas very much. The striking drivers who said their action was directed against the Government's support for tachographs were protesting in a funny way by standing their employers' vehicles against the wall.
Mr. V. J. Pike (West Midlands) queried the value of A and B licences under quantity licensing.
Mr. Osborn said no one knew the answer but both licences had a limited life, for operators' licences would probably be introduced within a year and A, B and C licences would disappear. Restrictions on the use of bigger vehicles would only operate if and when quantity licensing came in so old licence values would vanish. The value of businesses would depend on the field of operations. and potential for development.
Mr. Wynn stressed that B licence restrictions would disappear and A licence hauliers must expect much greater competition.
Asked by Mr. D. G. Undery (South Wales) about the justification for demurrage on vehicles suffering unduly slow turn-round, Mr. Robbins said the BRB was taking this up with its main customers. Mr. Farmer said the road haulage industry should be consistent. It had cried "wolf" too often and only if all concerned applied demurrage would industry realize that action to improve turn-round was essential. Mr. Klepper said a financial penalty on offending firms was essential. The industry needed "strong nerves and no one to rat on the demurrage proposal".
Mr. E. B. R. Smith (Eastern area) queried the advisability of long-distance operators continuing to build up their fleets of large articulated vehicles subject to quantity licensing as opposed to the 16-ton gross weight rigids not subject to special authorizations. Mr. Robbins said the impact of quantity licensing would be small. "I would go for vehicles offering the best economies. The efficiency of large vehicles would serve operators better than any attempt to beat licensing by operating smaller vehicles."
The next annual conference of the RHA will be held at Aviemore, Scotland, October 1315,1969.