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The Wheel Turns

26th December 1952
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Page 25, 26th December 1952 — The Wheel Turns
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Which of the following most accurately describes the problem?

AMOMENTOUS year for road transport is ending as it began—in a blaze of political controversy. There is, however, this difference; a year ago, the industry did not know how far or how soon the Government would honour its pledges to denationalize road transport, whereas now the plan to extend free enterprise is not only known but is well on the way to operation.

The Transport Bill has passed through the committee stage of the House of Commons with not altogether commendable speed. The guillotine has had the effect of weighting the debate in favour of the Opposition, and some constructive observations by back-bench Conservatives may have been lost. A concession is likely to be granted in the levy, but no other important change has been made in the Bill. It is possible that the first practical steps towards denationalization will be taken soon after Easter, and in a year's time, long-distance road haulage may well be largely in the hands of private enterprise.

• Licensing Inquiry On the passenger side, an important event has been the appointment of the Thesiger Committee to inquire into licensing under the Road Traffic Act, 1930. Generally, the system has worked well in the past 23 years, but certain aspects of its administration are capable of improvement, and further consideration of the conditions of operation of contract carriages is overdue. Apart from producing recommendations on these matters, the committee will afford the Minister valuable information on which to base a decision whether or not to extend free enterprise in road passenger transport. Present indications are, however, that he will not do so.

There is no sign of stability in fares, which have shown a general upward trend throughout the year, as taxation and wages have risen. The Minister's decision to expedite adjustments in fares by statutory operators will be of great assistance to municipalities, most of which are incurring or expecting losses on their transport.

The year has seen the introduction of about 20 new chassis and several new standard designs of bus body. The Commercial Motor Show, which was an outstanding success, revealed an accelerated tendency towards the reduction of unladen weight and the increase of payload capacity, particularly in public service vehicles, and the extension of chassisless construction. Skill in the use of light metals in bodybuilding has developed and has enabled heavier loads than ever before to be carried. The year has witnessed also the widening of the field of application of the oil engine.

Output Lower Shortages of materials are reflected in a lower rate of Vehicle output than in 1951. Production has declined in all branches of the commercialvehicle industry, but most noticeably in the electric market, in which the number of vehicles manufactured has been almost halved.

In the first nine months of this year, 178,005 goods and passenger vehicles were manufactured, compared with 193,726 in the corresponding period of 1951. The indications are that output for the year will be about 22,000 lower than that of 1951.

During the year, public service vehicle body builders have found what will probably be the future level of annual output. The post-war boom has ended and the buyer commands the market. Some small bodybuilders have gone to the wall and those remaining have had to adjust their outlook and facilities to the new conditions.

Although the number of commercial vehicles exported during the first nine months of the year was lower than that of the corresponding period of last year, the value of shipments was nearly Dm. greater. From January to September exports, including trailers, totalled 101,150 units (60.1m.), whereas, last year's figure was 104,922 units (£53.4m.). When the figures for the full year are known, it will probably be found that the number of vehicles exported is about 8,500 fewer than last year, but that some £9m. more of foreign currency has been gained. Even better results could have been obtained had manufae turers been permitted to give more extended credit.

The New Year promises to be interesting and lively. For hauliers, it presages competition of an intensity unknown for the past 13 years. They hope that they will succeed in inducing traders to hand back to them the traffic which they formerly carried, but on nationalization was diverted to C-licence vehicles. The growth of C-licence transport has been one of the outstanding characteristics of the post-war era, and the latest figures show that between September, 1951, and September, 1952, 44,817 additional ancillary users' vehicles were placed on the roads. This is the measure of the task which faces hauliers. With more generous steel supplies, it should be possible to increase the output of commercial vehicles, although the volume of home sales is governed as much by the Chancellor of the Exchequer as by the physical capacity of manufacturers to produce vehicles. Purchase tax on goods vehicles and limited hire-purchase facilities have militated against the replacement of obsolescent stock, and a radical change in fiscal policy will be necessary before road transport can adjust itself freely to the public need. In particular, relief from the onerous burden of the fuel tax, and the improvement of the roads are essential to the economic conduct of trade.

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