Road and Rail Rates Problems
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Our Contributor Analyses Statements by Me Railway Chairmen and Gives His on the Suggestions Made in Them
By "Tantalus ))
THE speeches made by the font chairmen of the respective railway companies at the recent annual meetings reveal something of the plans and hopes for the future.. There would appear to be little doubt in the minds of these gentlemen that the " square-deal " conditions will be imposed on road transport as soon as circumstances permit. In this connection it may be remembered that the thief claim was for the enjoyment al freedom from statutory control of freight charges, by which means the financial position wOuld be„. stabilized, In October, 1943, Lord L.eathets stated that a more drastic approach to the matter was necessary, and it is interesting to note that, coincident with this statement, more severe restrictions were imposed on road transport.
One of the most serious postwar problems facing the railway companies is the question of costs and charges. It is stated by the companies that costs have increased more than 50 per cent, above pre-war level and that charges have been raised by 16/ per cent. Post-war earnings are not likely to equal war-time levels, as traffics .probably will be less. The present intensity of traffics cannot persist when new auditions prevail at the termination of the European war_ Nevertheless, the question of relating costs to freight Idiarges may dominate Government policy regarding both rail and road; for the matter is one which concerns the whole community and cannot, therefore, be shelved, On Me surface, it appears that some increase in charges will he necessary if the gap between costs and charges is to 1.-e ,7.overed. Yet any increase in the future must, necessarily, _ De kept within the narrowest limits, otherwise there will De placed upon trade and industry a burden too heavy to peborne, particularly in respect of the export trade.
How Will Higher Costs Be met?
• That this question of rates directly affects the road trans?ort industry is beyond queAion. The future Operating -,:otiditions. however, remain obscure. If railway rates he 'aired to meet increased costs, could not a similar claim be nude for road transport? Operators have to bear increased werhead costs in wages, fuel, tyres, repairs, etc. Whilst ,oad ratek have been increased a:: regards specified traffic iarried by controlled undertakings, the qUeStion of costs Ind charges for the industry as a whole—in relation to post-war operation—reinains untouched. Even the Road ind Rail Conference is still, in the main, busying itself with rates structure and is not concerned with pot-war costs sod charges. Until these be altered, the weal problem -emains unlaced a mere change in methods at costing :annot alone bridge the impending gap between revenue. indexpenditure.
In considering the means by which this object might be iecomplished, it is necessary to know when, and to what :pitent; freedom will be restored to road transport. The ;Overnment agreement With the railways provides for the
.ontinuante centrollOr a riiinittium of one year after the :essation of hostilities: It was`.statedlast December by he Parliamentary Secretary to the Minister 'ofWar Transtort thatcontrol is more likely to last two years than one. He also pointed out that a de-Enit. meaning has yet to he given to the phrase cessation of hostilities.– It may be assumed, therefore, that control of road transport may continue for a similar period. It is possible, of course, that events may prove ton strong for the maintenance of the present severe control. 'For example, the demands cf industry for increased road-transport facilities may be such that, in spite of Government desires or railway ambitions, these demands will have to be met. Serious inconveniences which the trading community and, the travelling public have suffered during war-time will not be endured later_
So far as the railways are concerned, it is apparent that the companies must, of necessity, undertake a renewal and reconditioning programme in the matter of locomotives, rolling stock, and track as soon as circumstances permit. Surely,, then, at the conclusion of the war in Europe, there should be some relaxation of the severe restrictions at present imposed on road transport. Failure to grant sueh relaxation must have a prejudicial effect on industry as a whole.
. Is Road Transport -Kept Informed?
Regarding the future of the railways—a matter in which road-transport operators are vitally interested—it was suggested by Sir Charles Hambro that the four main-tine companies should continue as separate entities and that transport co-ordination should leave. room for competition, as well as for choice of alternative facilities. He also stated that earnings should be higher than they were in the years immediately preceding the war, because, among other reasons, road transport will be regulated. Doe this mean that an indication of future policy has' been given already by the Government to the railway companies? If so, has the road-transport industry be-en provided with similar information? In such .event, surely it is incumbent upon the National Road Transport Federation to inform the members of the industry, accordingly. Further, the N.R.T.F, might diselose whether negotiations or discussions are taking place between tlie Government, the railway. companieS, and road-transport interests concerning co-ordination and future policy.
Co-ordination is a word which is freely used by the road and rail parties, but few persons will venture to give a precise definition of what it means. It can refer only to something of an abstract nature. What is required, so tar as the road-transport industry is concerned, is something concrete and realistic; something which. can be understood readily by the most humble operator. Are not many in the industry still obsessed with ideas of an old vintage which may be entirely out of date as applied to post-war conditions? It would seem, rather, that the future position of road transport, in. relation to the railways, should be approached afresh, and in the process there should be discarded all attempts to correlate road and rail rates. , If it be the -considered opinion .of. the road-transport mill Ft ry that a rates schecluIe-would be .beneficial and, moreover, necessary, then let there be one. It -is pot, however, expedient that such a schedule be, tied to railway rates.