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n How can we assess the likely savings 'ha• to

21st June 1968, Page 159
21st June 1968
Page 159
Page 159, 21st June 1968 — n How can we assess the likely savings 'ha• to
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Which of the following most accurately describes the problem?

be derived by a reduction in unladen weight resulting from the fitting of tubeless tyres?

AFirst, as regards any savings in the

amount of annual excise duty you would have to pay as a result of reduced unladen weight, the amount of duty payable increases in gradations of 5cwt. So it could be that although the unladen weight was reduced by fitting tubeless tyres, it might not be sufficient to bring the vehicle into the next lower category. Alternatively, if it did the saving could be £13 10s a year.

As regards revenue-earning capacity if. as a purely notional figure the maximum legal payload could be increased by 2cwt as a result of fitting tubeless tyres, then the potential increase in revenue could be calculated by multiplying the previous average revenue per ton-mile for that particular vehicle before conversion by the notional 2cwt.

This, of course, would only be a potential saving. The extra revenue would, in practice, only accrue if the operator could load to the maximum on every journey in order to take advantage of the extra 2cwt which could then be legally carried after the vehicle has been converted to tubeless tyres—which would be an unlikely level of efficiency. There would, of course, be no saving on any load which was 2cwt or less than the maximum because such a load could have been legally carried by the same vehicle before it was converted.

However, with the advent of stringent regulations now being implemented to limit vehicles to plated gross weight, operators will be examining all means of ensuring that they do not break the law and so incur heavy penalties. Therefore any saving in unladen weight will be welcome on this score alone apart from the additional possible increase in revenue-earning capacity.