Compensatton for Bad Debts
Page 39
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AS from August 1 the National Conference of Road Transport Clearing Houses will provide cover for all its haulier members in the unlikely event of any clearing house member being unable to meet his liabilities, and a compensation fund has been set up for that purpose.
In making this announcement Mr. Boyd Bowman, national secretary, claims that for over 30 years the road transport subcontracting industry has been bedevilled by succeeding Crops of short-lived firms who disappear leaving debts behind them. This has damaged the reputation of reliable clearing houses, and hauliers who have been caught do not always know where to turn for security.
To promote good relations the Conference tackled the problem of delays in payment and in April, 1960, imposed an obligatory time limit for payment on those clearing houses who are member of the N.C.R.T.C.H.
This step has now been followed by the removal of a fear of a possible default by the setting up of the Conference compensation fund which, it is claimed, is completely new in the road transport industry. Because confidence is the kernel of good relations between clearing houses and hauliers, the Conference believes that this step makes possible the realization of sub-contracting with security.