Fleet Discounts Now Deduct
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om Hauliers' Compensation
Cairns for Better4t-ent Value on Vehicles • Being Reduced
TT is understood that the Road• Haulage Executive has initiated a_ sliding 'scale of discounts to be deducted from compensation paid to hauliers whose fleets are taken over. At least one accountant has refused to accept this new principle.
A legal authority to whom "The Commercial Motor" submitted the question for opinion, described it as inequitable, because different replacement values might be reached for identical 'vehicles owned by different operators.
It is also alleged that hauliers are being denied a substantial measure of compensation for betterment, as a result of a change in interpretation of the term " normal " condition in the Transport Act.
HIGHER PAY FOR DRIVERS IN "SOFT' DRINKS"
A N order made by the_ Minister of tALabour provides for the following rates of pay for drivers in the aeratedwater industry:—£6 4s. (drivers of any age), vehicles over 12-ton capacity; £6, 8-12-ton vehicles; £5 16s., 5-8-ton vehicles; £5 10s., 2-5-ton vehicles, and £5 4s., 1-2-ton vehicles. Delivery workers on vehicles of less than 1 ton and driver-salesmen also receive £5 4$ a week.
In most cases, the new rates are substantially higher than the minimumrc agreed scale, says the Transport and General Workers' Union. Formerly, replacement value has been
assessed as the maker's price, plus delivery and other extra charges. Now, "The Commercial Motor " is informed. 2i per cent, fleet discount is being deducted from compensation where a fleet numbers more than 10 vehicles, 5 per cent. for more than 50 velaieles, and 10 per cent. for over 100 vehicles.
What the Act Says
Section 47 (1) of the Transport Act. 1947, specifies that the compensation payable in respect of vehicles shall be an amount equal to the cost, at the date of transfer, of a new vehicle of similar type. Provision is made for wniting down the value by one-fifth for each year since the date of first registration. An addition or deduction is to be made from the valuation if the vehicle be materially better or worse in condition than " normal " for a vehicle of the sane type and age.
No reference is made in the section to question of discount, or to the particular circumstances of any individual operator. Up to now, voluntary and compulsory atquisitions have been negotiated without regard to the question of fleet discounts..
A spokesman of the Road Haulage Association said this week that the problem n had -not yet come before the Association, although the possibility had been exercising the minds of members.
Other complaints about the alleged arbitrary. attitnde of R.H.E, valuers continue to reach "The Commercial Motor." In one instance, a haulier's adviser protested against the delay in reaching provisional ascertainment and disputed the valuation of certain items.
Assessment Raised by £10,000 As a result, the compensation to be paid on provisional . ascertainment on one item alone was increased by £10,000, but the haulier's representative was given to understand that, because of his protest, the Executive would not discuss the matter, further on the provisional ascertainment. All outstanding.points would have to be taken up vvhen compensation was finally agreed.
A. well-known accountant informed "The Commercial Motor," a fen, days . 'ago; Of adispute that-is in progress over the definition of the word " normal" in Section 47 (1) (e). He said
that as a result of a new interpretation of the word as meaning a vehicle in good condition, hauliers were automatically losing a large amount of their claims for betterment value.
The new meaning ascribed to the term was, he said, practically the opposite of the definition apparently used in the case of several voluntary acquisitions, in which the Executive appeared to have regarded the word as implying " practically scrap condition."
'In practice," the accountant declared, " the new definition means that the most one can expect for a 1939 oilengined vehicle in good condition is about £200-30Q."
• Care Not Repaid Operators who had taken the advice of the Road Haulage Association and others to keep their fleets in good condition, in the belief that they would be repaid for their efforts, were now being penalized. The Executive, it was added, denied that any official statement to the effect that.careful maintenance would be to the ultimate benefit of the haulier. had been made.
The "Bournemouth Times' reports that delay in the payment of compensation continues. Messrs. Newlands Transport, of Boscombe, who were taken over last March, are stated still to be waiting for compensation, as a figure had not yet been agreed. Messrs. Green Line Transport, of Christchurch, who operated 20 vehicles, have also been taken over, and await compensation. According to Mr. L. W. Frampton, a director, nobody in the firm had been offered the position of manager.
Mr. G. F. Goodwin, secretary of the West Midland Area of the R.H.A., is reported by the "Birmingham Gazette" to have stated that many ex-owners, directors and managers of haulage businesses had been compelled to take less remunerative posts with the Executive until compensation for loss of office was paid. • Dispute Over Freehold Values
Dissatisfaction is also being expressed regarding the Executive's attitude towards compensation payable for freehold premises. Under Section 47 (2) of the Act, all property, other than goods vehicles,is to be paid for at what it would fetch if sold in the open market, estimated as at the date of transfer, and as if the Act had not been passed.
"The Commercial Motor" is informed that premises are being assessed at a figure that represents their value to the operator as a going concern, without regard to what they would fetch in the open market.
On the brighter side of the picture of nationalization comes the news that Miers Transport, Ltd., Wolverhampton, has forced the Executive to withdraw a notice of acquisition. As reported in "Tile Commercial Motor" on May 13, the company was served with a notice of acquisition on April 1, although it had already completed a questionnaire which showed that practically all its work was concerned with the collection of milk from farms within a radius of 20 miles, or the bulk transport of milk in tankers.
It is reported that the transfer of haulage businesses to the R.H.E. will be suspended during September, although a few acquisitions which have been delayed may be completed during that month. A spokesman of the Executive said that, he knewnothing of such a .proposal.
• . 'The Week's Transfers Thirty more haulage businesses were taken over between August 14 and August 20, bringing the total of acquisitions made so far this month to 99. The latest transfers are:—
The • business of David Callender, Ltd., Forfar, was started about'8Q years ago with a horse and cart, and the fleet has grown to 64 lorries and four trailers. The partners opened Conmont quarry in 1928, and Mr. Alexander and Mr. William Callender, the former directors of the haulage business, are to concentrate on the development of the Conmont Contracting and Quarrying Co., Ltd.
Works Truck Show Again Next Year
FOLLOWING its debut in London, in July, 1948, the Mechanical Handling. Exhibition is to be held at Olympia, London, again next year. This time two of the halls are to be used, and the exhibition will last 11 days (from June 6 to 17). The inclusion of two Saturdays in its run Will enable an even greater number of visitors to attend.
Exhibits will cover the full range of equipment for the handling, lifting, stacking and short-distance transport of goods, including trucks, conveyor and elevator systems. Electronic control of lifting gear will also be demonstrated, The exhibition is organized by "Mechanical Handling" and is supported by various trade associations.
NEW FERRY SERVICE
rONIMERCIAL-VEHICLE opera tors '-'have been invited to advise, in advance, their needs and views on a Granton-Burntisland ferry service. This will reopen about May. 1950, with landing craft running at halfhourly intervals from 6.30 a.m. until 11.30 p.m., and with a night service in prospect.
An average unit will take 50 vehicles and 400 passengers Mr. John Hall, Middle Pier, Granton, Edinburgh, 6, is responsible for the scheme to revive the ferry.