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SINCE THE introduction of operators' licensing there has no longer been any legal distinction between the haulier and the own-account operator.
Frank Woodward, transport services executive of Plessey Ltd, has long held the belief that the own-account operator is as professional as the professional haulier. This point of view is contested by Ken Rogers, national vice-chairman of the RHA.
First, Mr Woodward asks: Does the service given meet the needs of the customer?
In many cases the answer is an unqualified "No." This can be said of both sides of the
transport industry and .both are equally responsible for the less
than 100 per cent service to which the customer is entitled. Too often the "needs of the transport operation" are related to the "problems of the transport operator," not to the customer.
I think we are all as guilty of falling into the trap of looking at the needs and convenience of our own business. Decisions are far too often made, which have no relation to the needs of the
customer. "Haulageand "own-account" are both "guil
ty" of this, and, in this respect, I would treat them as equally "unprofessional".
The own-account operator, however, has a more difficult task, in that he cannot always walk away from the problems of his "customer". In such cases, the "customer" is his own company — the source of his capital for investment, the source of his working capital. Unlike the haulier, difficult transport problems within his own company are left to him to solve, The haulier can be asked to quote for the job to be done, but he (the haulier) has a choice of accepting, or not accepting, the work involved.
Is the "own-account" operator protected from "incompetence"?
The answer to such a question, if asked a decade ago may have been "Yes". Today, the pressures of cash flow, lack of capital for investment and, above all, the keen competition in product markets, has put the spotlight on distribution and transport costs to such an extent, that, no longer can that function be allowed to have an "uncontrolled purse".
Many large industrial companies who have their own transport and distribution functions, have established such functions as autonomous self-account units, with budgetary controls over capital and revenue accounts exercised in the same way as by the independent haulier.
It is still far from perfect, in that, although the objective is to establish a minimum distribution cost per unit product price. should the function fail to meel its costs v revenue targets, it does not normally have the same repercussions as the haulier — it would not in itseh go into liquidation. It could be the cause of the product division of that company going into liquidation.
Any haulier who fails to meel his costs has little alternative bui to shut shop and go intc liquidation.
Should an own-accoun. transport operation be found tc be costly and inefficient, thE company would have the alter. native of dispensing with thE function and contracting thE distribution activity to a haulier.
For this reason, the owr account operator must remair "professional" in his approaclto the transport needs of hi company. The alternative always in the background and am sure everyone involved ir this debate will have experienc
ed the "threat" of the alternative at some time.
Is the level of professional training of the own-account operator different to that of the haulier?
I would answer, an unqualified "Yes-. Although the Road Transport Industry Training Board is constituted to provide the training needs of the haulier, transport training programmes available outside MOTEC and outside any group scheme under the umbrella of the RTITB, are readily available and attended by all levels of manpower from the own-account field.
It is only recently that the Chartered Institute of Transport opened freely its doors to a wider field of transport management from the own-account sector, and I am sure this respected establishment has benefited.
The Institute of Road Transport Engineers, has always accepted candidates for corporate membership from all fields of transport. The examinations set by these two institutes are open to both sides and the pass lists will show an equal mixture of own-account and haulage taking top honours.
It has been my privilege to present papers and to lecture at the National Materials Handling Centre, Cranfield; to the seminars of the Chartered Institute of Transport; to the British Institute of Management; and more recently, to the British Transport Staff College. The content of most of these courses has been predominantly own-account, and the level of professional experience of the delegates has been high.
It is also interesting that the doors of the British Transport Staff College, in the past closed to anyone outside the haulage industry, have recently been opened to own-account transport operations, surely an indication of the acceptance of the professionalism of the management of industrial transport.
Does legislation see a difference between the two sectors of the transport industry? The White Paper makes no criticism of the present licensing system where, for almost 10 years, own-account and haulage applications for licences have been dealt with on exactly the same terms. The historical difference of the A, B and C licences have long since been forgotten and, today, I give a resounding "Yes" to a statement that the professional ability of the own-account user has been improved by the introduction of the single 0 licence for all transport operations.
Unfortunately, there are those who would like to see a return to the A, B and C system. The TML, or to give it its full title "Admission to the Occupation" is being seen, by some, as another way of building that Berlin Wall between the two sectors of transport.
Other legislation covering Construction and Use, Drivers' Hours and Records, Hazardous Goods, Driving Licences, etc, shows no difference between haulage and own-account; every operator of transport must discipline his operation and himself, to operate within the criteria set in their regulations.
In presenting the case for own-account, only one thing worries me. It is that, in the latter half of the 70s, here we are — responsible transport management — debating the disciplines, competence, and professionalism of two sides of an extremely important function, a function upon which the future prosperity of our nation depends. As long as such debates go on, the arguments for and against will be forthcoming.