" Heavy " Makers Want Five Freedoms, says Mr. Reeve
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FIVE freedoms for hea'vy-vehiele manufacturers were demanded by Mr. C. W. Reeve, C,B.E., chairman of Associated Commercial Vehicles, Ltd.. in his annual speech to the shareholders. last week. They were:
(1) To manage their own affairs; (2) to consult and co-operate with those who served them, and to reward them adequately; (3) to serve buyers; (4) to continue to serve purchasers long after sales had been effected: (5) to take risks, and to adapt industrial production instantaneously to changing needs,
TB one of the pungent speeches for which he has become famous, Mr. Reeve said that more than 67 per cent. of the company's so-called profits were payable to the Government in taxation. Over 18 per cent. was retained in the business for development, and only just over 14 per cent was distributed to the shareholders.
The position would probably be worse this year. The increase of 5 per cent, in profits tax was a further penalty on initiative and a „restriction on the company's capacity to modernize its plant, "The only result." he said, "will be a smaller addition to our reserves and, if continued, in the long run it will be destructive of the ability' of industry to keep itself strong in the competitive warfare throughout the world upon which we are now entered."
Mr. Reeve added: "The capitalists' who own your undertaking are about 16,000 in number, and of these, approximately 12,000 own £100 stock or less, and a farther 21 per cent. own Over IWO and under £500."
Experience of the A.C.V. group proved that the only effeCtive inducement . to increased output was the promise of greater earnings, and that increase in output was found to be in direct ratio to the size and quality of the incentive offered.
Recently the group had had to discharge employees, not because of a lack of orders, but because overseas customers could not obtain sterling, municipalities at home could not secure Government permission to borrow money, and nationalization had made buyers here reluctant :to take delivery.
Referring to the Minister of Transport's decision to allow four-Wheeled public service vehicles to be built with a length of 30 ft., Mr. Reeve said: "Let us, then, be grateful for this sadly belated recognition of the national interest, for it will certainly equip us better to standardize the needs of home and export production. It is another step forward; there are many more still to be taken. Our efforts to achieve them will be tireless and continuous,"