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Haulage rate structure falsely based, say RHA

23rd April 1971, Page 20
23rd April 1971
Page 20
Page 20, 23rd April 1971 — Haulage rate structure falsely based, say RHA
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Which of the following most accurately describes the problem?

• In a notable admission, the Road Haulage Association's annual report for 1970-71 says that the road haulage rate structure has been falsely based for the past 50 years and the transport of trade and industry has been subsidized by its providers. Inflation had increased road haulage costs by about 15 per cent in the past year, highlighting the need for higher rates to increase an abnormally low return on a high capital investment.

Government statistics show that the haulier's productivity is notably high and he is entitled to take pride in his achievement. say Mr William McMillan, chairman, and Mr G. K. Newman, director-general, in the report. "Pride, -however, does not pay bills, and at a time of declining traffic hauliers are under the painful necessity of raising their charges substantially, but in the knowledge that before long they will have to return to their customers for still more. They are the victims of circumstances over which they have no control."

The report suggests that sooner or later, and in any event if Britain joins the Common Market, the maximum permitted weights of vehicles will have to be raised to Continental standards. "This will involve virtually no increase in dimension—a widely misunderstood fact. The interests of the national economy can be served and the quality of life can be improved by the obvious expedient of building roads that will enable lorries to carry maximum payloads but to avoid places where they might create intolerable nuisance. The answer lies in the hands of the Government."

The report urges amendment of the operators' licensing provisions of the Act to require Licensing .Authorities to be satisfied "beyond reasonable doubt" of an applicant's financial resources, which are crucial to the maintenance of satisfactory operating standards. And a drafting error in the legislation preventing a Licensing Authority from taking into account a misdemeanor of a newcomer who begins to operate before his licence is granted, although an existing haulier, on transition from carriers' to operators' licensing could be punished for doing so, should be amended.

A welcome is given to the action of the RTITB in excluding 34,000 businesses (including 8000 hauliers), with payrolls not exceeding £5000 a year, from the. compulsory levy scheme. "Only 3000 of them have been able to undertake grant-worthy training", says the RHA. "These small firms have been a liability, rather than an asset, to the RTITB and their exclusion (unless they wish to pay levy voluntarily) will save the Board £250.000 a year. This constructive attitude augurs well for a better relationship between the RHA and the board in the future."

The commercial standing committee is to arrange a meeting with the Freighi Transport Association to discuss the receni FTA memorandum on the turnround ol vehicles and the possibility of charging ir terms of running time and waiting time. Thi: committee also "took a highly critical vieu of the threat of the petroleum companies tc withdraw supplies unless hauliers signed ar agreement whereby their agency account! were paid by the direct debit system, ant told the companies so".

More than 300 senior managers hay( now attended RHA sponsored residentia courses annd there are to be "follow up' courses at Ashridge College, with stress or personnel management (including industria relations and productivity bargaining) finance, marketing and modern manageria techniques. A working party, on which thc education and training committee i! represented, is considering the possibility 01 running industrial relations seminars al Loughborough University.


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