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M.O.W.T. Concedes Higher Rates for Hired Vehicles

21st January 1944
Page 24
Page 24, 21st January 1944 — M.O.W.T. Concedes Higher Rates for Hired Vehicles
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Which of the following most accurately describes the problem?

THE M.O.W,T. and the S.J.C. have issued a joint statement regarding rates for vehicles hired under the Government Road Haulage Organize

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tion. These rates have been under review by the Ministry and the Finance Panel of the S.J.C., in the light of• general, experience. gained in the operation of the scheme and, particularly,

of the effect of working conditions under the _recent exceptionally heavy demands on haulage which, incidentally, are likely to continue, and probably increase.

It has been obvious for some time, as has been shown by the large number of letters of complaint that we have received and details that have been sent to the S.J.C., that the rates which have been in force up to the end of 1943 were too low, in view of the change in the circumstances as regards operation, and especially the effect on the life of the tyres of the modifications rendered necessary in them by the shortage -of natural rubber.

In some cases, in order to meet local transport requirements, it has been necessary to take vehicles away from their normal routes and even to change their bases. The result has been that the average cost of maintenance, apart from increases in the cost of materials and the dilution of labour, has been raised,

The discussions on this matter were advantageous, because they afforded opportunity to make other adjustments which have shown themselves to be necessary. • Our readers will find all the details in the accompanying tables and their footnotes, and they can compare the schedules with the rates which they have hitherto been receiving.

The revised payments will operate retrospectively from January 1, which is an additional concession. The agreed modifications put in brief are as follow:—The mileage payments have been substantially increase& the weekly payments have been raised, and will in future be based on a 46-week year, i.e., a full 'year's standing charges will be paid for 46 weeks of

" availability." If the vehicle he available for more than 46 weeks the additional weeks will be paid for pro rata. On the other hand, no payment will be made during any period of non. availability from whatever cause this

may arise. It is believed, that this arrangement will prove an incentive to operators to maintain their vehicles in roadworthy condition.

Instead of being treated as an element in the weekly and mileage payments, the actual cost of new and retreaded tyres will be reimbursed, the operator also retaining any credit for covers returned in good condition.

Where a hired vehicle is purchased new after January 1, 1944; at more than 50 in excess of the price allowed for when the original rates were fixed, an addition will be made for the extra depreciation involved and for interest on the added increased capital expenditure.

The allowance in respect of employers' liability and workmen's compensation will be raised from 30s. to 40s. per cent, of the wages paid to drivers and statutory attendants.

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