Q We are trying to interpret the Prices and Incomes Board
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report on road haulage charges. In one section it seems to suggest that an increase of 5 per cent is justified—but in another 712per cent seems to be the agreed figure Which is correct?
A The original criticism of the PIS in its
very first report on haulage charges was directed against "blanket" increases as recommended by the R HA at that time. It is therefore not the intention of the Board that any figures such as the 5 per cent or 7+ per cent you took from its report should be applied as general increases in individual cases.
It is the Board's contention that any proposed increases should be justified by comparing actual costs of individual operators over whatever period is under review, after every effort has been made to absorb at least some of the increased cost by increased efficiency.
A further reason why blanket increases are inappropriate is that in most haulage businesses it is inevitable that there will be traffic being carried at rates -recently negotiated alongside traffic of long standing, with rates agreed at a correspondingly earlier level. Here again only individual evaluation can provide a satisfactory solution when a revision of rates is being undertaken.