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Competition Essential in Transport

24th October 1952
Page 26
Page 26, 24th October 1952 — Competition Essential in Transport
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Which of the following most accurately describes the problem?

WHILE introducing the new Humber Super Snipe car a few days ago, Sir William Rootes, K.B.E., made some interesting and emphatic observations which are pertinent to the commercial motor industry. He pointed out that far too many people, including governments, seemed to think that the industry's export trade was a flash-in-the-pan affair, here to-day and gone to-morrow, and to be tax.ed heavily while the going was good. Instead, as Britain's largest single exporting industry, it expected to be treated with the consideration it deserved, to enable it to continue as such. Everything depended upon freedom of action, holding of costs and a stiffer backbone by the Government in trade negotiations with those overseas.

As an industrialist, Sir William was not dismayed by the changes to be brought about by the passing of the Transport Bill. The motor manufacturing industry had a vital interest in the transport system of the country. It was a complex organization, requiring the services of thousands of concerns engaged in providing raw materials and semi-manufactured and manufactured components, which were ultimately brought together on the vehicle assembly lines.

Consequently, the efficiency of the transport service on which the manufacturers depended was a major factor in their ability to meet the fierce competition in overseas markets.

Enterprise flourished best under the stimulus of healthy competition and Sir William viewed with pleasure the proposal to bring a large measure of competition into road haulage. For the same reason, he welcomed the projects to decentralize our railways and free steel.

The need for creating conditions whereby the proper balance between road and rail could be achieved was recognized by the motor industry, but he did not believe that a levy on road transport to bolster the railways against the effects of road competition was the right solution. It was putting a tax on enterprise, efficiency and competitive ability.

He believed that the solution lay instead in improving the railways' position. They should be given substantial freedom to fix their rates and charges and earn full revenue as commercial undertakings. These moves would enable trade and industry ultimately to obtain cheaper and faster transport.

It was high time that transport Was taken out of politics and a lasting solution found whereby road and rail could each be self-reliant in a climate of healthy competition Essentials now were freedom from purchase tax, relaxation of credit restrictions, and decreasing Government control.

No doubt many people in our industry think with Sir William, but few can view the position from every aspect as he can, being one of the most important manufacturers of both commercial vehicles and cars. Consequently he has been able to indicate how interdependent are the two sides of the industry—production and operation.

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