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THOSE VITAL STATISTICS

25th December 1959
Page 44
Page 45
Page 44, 25th December 1959 — THOSE VITAL STATISTICS
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INTERPRETATION of the regulations governing the permitted width of articulated vehicles is requested by a reader. He .names, a popular make of 10-ton semi-trailer with automatic coUpling, ,and' asks whether it is correct that the semi-trailer must not exceed 7 ft. 6 in. in width unless the tractor unit itself exceeds that dimension. He also inquires whether it is permissible to increase the 'overall Width at the tractor unit by the simple expedient of extending ancillary fittings.

Before dealing with the legal aspects of this query, it will first be assumed that the semi-trailer specified by the reader will be drawn by a tractor unit of comparable popular manufacture. In that event, the unladen weight of the tractor unit would probably be around 21 tons, and certainly well below 4 tons. This is an important factor. Regulation 37 (b) (iv) of the Motor Vehicles (Construction and Use) Regulations, 1955, states that a vehicle with an unladen weight of 4 tons or more may exceed the standard permitted width of 7 ft. 6 in. by not more than 6 in., and this -is equally applicable to goods vehicles or tractor units.

Therefore, unless this particular semi-trailer were drawn by an exceptionally heavy tractor unit relative to its carrying capacity, it would be limited to a maximum width of 7 ft. 6 in.

In other circumstances, where a tractor unit of 4 tons unladen or more is employed, Regulation 37 requires that, in addition to being over 4 tons, the tractor unit must also exceed 7 ft. 6 in. in width before it is permitted to tow a semi-trailer wider than 7 ft. 6 in.

In determining the overall width of a vehicle, the projection of any driving mirror, direction indicator or tyre distortion must be ignored.

ABUILDING contractor operates two personnel carriers, one with 12 fixed seats and the other with adjustable seats to provide accommodation for the carriage of goods. He fully realizes that when he does, in fact, transport goods in the second vehicle a carrier's licence is necessary, as it comes within the category of dual purpose.

He wishes, however, to license the vehicle with fixed seats in the same manner as a private car, as only workmen and their tools are carried. But he is puzzled by apparent variations in the ruling of various local taxation officers on this matter, and asks for advice on the legality or otherwise of this form of licensing.

The classification of motor vehicles for taxation purposes is governed by the Vehicles (Excise) Act, 1949. Section 5 provides that a vehicle constructed or adapted for the carriage of goods shall be taxed by its unladen weight. This section, however, is modified by Section 7 (2) of the Finance Act, 1952, under which such a vehicle exceeding 12 cwt. unladen is taxed as a goods vehicle only if it is used to convey goods for hire or reward, or in connection with any trade or business.

e 1 0 If, therefore, such a vehicle is used for the carriage of articles or goods in connection with a trade or business, it would properly be classifiable as a goods vehicle. For example, if workmen's tools, as in this case, are conveyed in connection with a, building contractor's business, the vehicle would be taxable at the goods rate.

The question appears to be, therefore, whether the vehicle in this case can be regarded as constructed or adapted for the carriage of goods. It would seem that, for taxation purposes, some personnel carriers .could reasonably be held .to be .constructed to carry goods, particularly where there is an area of clear space available for goods, or may be made available by tip-up or folding seats. These factors, together with the amount of stowage provided for passengers' luggage, the position of doors, the removal' or unbolting of parts of seats and so on are all taken into consideration by local taxation officers before deciding in what particular classification a vehicle shall be licensed.

D ECOM MENDED rates for the supply of a 30-cwt. van on

C-hire contract are requested by another reader. He asks that they should be based on a 44-hour week and expressed as a rate per hour plus mileage charge, with an additional rate for any Saturday work.

With the customer supplying the driver and paying his wages, the remaining four items of weekly standing costs (as distinct from charges) are estimated as follows: Licences, 9s., rent and rates, 8s. 6d., insurance, 8s. 10d., interest, 9s. 4d.; total, El 15s. 8d. Allowing an increase of 20 per cent, for both overhead costs and profit would give a recommended standing charge per week of £2 10s., or Is. lid. per hour on the basis of a 44-hour week.

Assuming the van has a petrol engine, the five items of running costs per mile are reckoned to be: Fuel, 2.91d., lubricants, 0.19d., tyres, 0.56d., maintenance, 1.87d., depreciation, 1.61d.; total, 7.14d. With a 20 per cent, addition for overheads and profit, the recommended charge per mile would be 10d.

The charge for any work done outside the standard 44 hours, whether on a weekday, Saturday or Sunday, will be limited to the mileage rate only (10d.), because all standing costs will presumably have been met during the first 44 hours of hire. Any variation in the rates payable to the driver will, of course, be met by the customer.

HIRING from the customer's angle is the subject of another inquiry. A firm of engineers state that they are considering expanding their transport facilities and ask for details of the running costs of a popular 5-tanner with a view to comparing the merits of alternatively operating their own vehicles or hiring.

Dealing first with the operating costs of a petrol-engined 5-ton platform vehicle, the five standing costs per week are: Licences, I3s., wages, £9 4s. 3d., rent and rates, 10s. 6d., insurince, 12s. 5d., interest, 12s. 7d.; total, £11 12s. 9d. Assuming a Neekly average of 600 miles, running costs per mile would be: Fuel, 3.75d., lubricants, 0.244., tyres, 1.27d., maintenance, 2.28d., depreciation, 1.21d.; total, 8.75d.

Licences for the oil-engined version, with a slightly heavier anladen weight, would amount to the equivalent of 14s. per week. Wages would remain at 19 4s. 3d. and rent and rates at 10s. 6d. per week. Because of the higher initial outlay, insurance will now amount to 13s. 2d, and interest to 15s.= id. per week, making the total standing cost £11 17s.

Fuel costs per mile will be reduced to 2.56d. for the oiler, with lubricants and tyres again being estimated at 0.24d. and 1.27d. per mile respectively. Maintenance, however, is now assessed at 2d. per mile and depreciation at 1.50d., making a total running cost per mile of 7.57d.

In comparing the merits of operating one's own vehicle or hiring, allowance should be made for variations in individual contracts. Such variations stem naturally from the fact that contract hiring is, or should be, designed specifically to meet the requirements of one customer. Nevertheless, it is important to ensure that all 10 items of operating costs have been accounted for when the final contract is drawn up, even though some may be the responsibility of one party and the remainder met by the other,

For example, one customer's premises may be so far from the hirer's garage as to make it more convenient for the customer to provide his own fuel, washing and minor servicing facilities, leaving major repairs as the responsibility of the contract-hire specialist. In that event, the total hire charge would be reduced not only by the omission of fuel costs, but also by the deduction of some proportion of maintenance costs.

In other circumstances, the reverse may apply, with the contractor being responsible for all fuelling and maintenance. Another alternative is provided by the licensing arrangements whereby the contract& can employ, the driver (under contract A licence), which would naturally affect the responsibility of payment of wages.

Whilst a direct comparison can be made between the probable cost of operating one's own vehicles and hiring, provided that consideration is limited to the 10 items of cost already specified, it is more difficult, if not impossible, to assess in terms of actual cost the diversion of administrative _ability from the trade or industry in which the customer may be engaged to the operation of an ancillary transport fleet. Another factor to be considered is the cumulative effect of

the use of capital for more profitable purposes. If, for example, the customer wishes to extend his main activities, the release of capital for this purpose by hiring transport may bring long-term benefit. If the initial expansion achieves its ultimate objective of increased profit, further expansion. may then be possible on the collateral security that the overall increased turnover may then provide. Conversely, even if capital had been available for both the initial extension of the business and the provision of a transport fleet, still further capital would eventually be required for the additional ancillary transport necessitated when production had been increased.

EEVEN though the owner-driver J—..ior small operator may not ba in a position to provide his own maintenance facilities until he has become well established, it is both advisable and 'profitable for him' to install bulk fuel storage as soon as possible. With every gallon used, the substantial difference between retail and bulk prices will soon offset the initial outlay and subsequently assist in limiting operating costs. As an example of what can be achieved in this direction, and based on a nominal price difference per gallon of 3d., a vehicle averaging 15 m.p.g. would return a fuel cost per mile of 3d. at 3s. 9d. per gallon and 3.20d. at 4s. per gallon.

There are, however, regulations governing the storage of motor fuels. Operators must either comply with the terms of a local authority licence or with the Petroleum Spirit (Motor Vehicles, etc.) Regulations (Stationery Office, 4d.). A fire extinguisher or supply of sand must be readily available, and unless the storage place is in the open, it must be effectively ventilated and have a direct entrance from the open air. Except where the fuel is kept in containers of two gallons capacity or less, a storage space must be more than 20 ft. from any building, highway or public footpath, unless provision has been made to prevent the fuel flowing out of the storage space in the event of fire. Additionally, the local authority must be notified each January when it is proposed to keep petrol in containers of more than two gallons each.

The Heavy Oils (Road Fuel) Regulations, No. 717/35, provide that heavy oils (derv) must be stored in tanks or other containers bearing appropriate identification marks as required by the local Customs and Excise officer. S.13.