New Cost Tables
Page 81
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THE new edition of The Commercial Motor Tables of Operating Costs has been published this week. It is available through newsagents, price 4s., or from the ,ondon office of this journal, price 4s, 6d. postage paid. ks an indication of the cost data contained in this publicaion three extracts are given here of the total nine tables: Fable 1 (Goods Vehicles—Rigid-5-cwt. to 2-ton Loads), Cable .7 (Passenger Vehicles—Buses) and Table 9 (Cars-lire—Staff—Private). The tables not shown here detail he cost of operating both rigid and articulated goods 'ehicles from 3-ton to 16-ton carrying capacity, electric rehicles and coaches. The complete Tables contain cost lata of 60 representative commercial vehicles consisting of Ii goods vehicles, 15 public service vehicles and four staff ars.
In addition to the basic cost data this publication conains useful information for ready reference, such as the iddresses and telephone numbers of Licensing Authorities, irganizations concerned with road transport, and an extract if the new R.H.(78) Road Haulage Wage Rates, including Yvertime working applicable to 50-, 55-, 60and 66-hour veeks. There is also a ready reckoner to facilitate the :alculation of fuel costs per mile at varying prices per ;anon and rates of consumption. A 10-year comparison )f vehicle prices, wage rates and fuel prices is. also ;iven.
Apart from this reference data two articles are included m a recommended system of cost accounting, including i specimen vehicle costing sheet and advice on the recordng of tyre costs.
The Commercial Motor Tables of Operating Casts were irst published in 1911 and have appeared regularly ever ince, apart from the war years, this edition being the 48th. Throughout that period they have been widely recognized 'or their comprehensiveness, accuracy and impartiality. They have contributed a valuable influence over the years
n introducing the subject of vehicle costing to many operaors; as well as providing a yardstick by which to measure heir own costing and operating experience.
Over this long period sound principles have been evolved vhich have stood the test of time, and these still apply. nevitably, however, the several changes over the past 2 months since the issue of the previous edition have tecessitated a complete revision of the contents. Whilst a 'ew items of costs, including licence duty and fuel, have .emained unchanged in the Tables, the majority of the .emaining items have either been changed basically or lave been subject to some adjustment.
This new edition, therefore, has been brought completely lp to date with changes which have taken place up to and ncluding May 4, and should once again prove an invaluible reference book for both professional and ancillary Terators, distributors, insurance companies, and others :oncerned with the cost of operating vehicles. In contrast vith the upward trend of vehicle operating cost the price af this publication remains the same. Despite increased )rint orders for the previous two editions of the Tables hey have been sold out before the new edition was availtble and readers are therefore advised to place their orders arly.
As in previous years a major item in the increase in :osts has been the adoption of new wage rates. In the prepious edition the goods vehicle driver's wages were based on the then current Regulations R.H.(74). Since that date R.H.(76), concerned with night payment and subsistence allowance, has been issued and more recently R.H.(78)„ operative as from May 4, by which the whole basic wages were increased by approximately 4 per cent. In addition to the actual payment to drivers, the item of " wages " as included in the Tables also allows for the expenditure incurred by the employer in respect of the graduated pension and National Insurance contributions relative to the wages paid.
Some of the other increases or adjustments, however, are not so clear cut. The reason for this is that the revision of successive editions of the Tables is not simply a matter of percentage additions or subtractions from existing costs. In compiling standard cost tables, as distinct from the costing of a specific type of vehicle on a specific type of operation, a wider view of the impact of changes has to be taken.
An example of this is contained in the Tables themselves. In the 10-year comparison of costs relative to vehicle prices a specific vehicle is used as an example. But in the Tables proper an average price is derived from a number of vehicles which, after careful consideration, are deemed to be representative of their group, including, of course, a prior decision as to what is to be accepted as standard equipment.
Extras become Standard In the averaging of vehicle prices, therefore, it follows that adjustments in prices alone are not the only changes that have to be accounted for. A particular manufacturer may add or drop some models, or specifications may change so that previous extras become standard equipment. If the models added or deleted happen to be at the top or bottom of their particular price range then the average price will be affected, although prices of models in the middle of the range may have remained the same. The same remark applies to tyre specifications, where again prices alone are not the only criterion.
Whilst the continuing increase in many of the items which go to make up the total cost of operating commercial vehicles is to be deplored, on the other hand some recognition must be given from time to time for improvements in vehicle design and construction, including tyres, which advantageously affect operating costs. But because any such process tends to be gradual and accumulative in effect the resulting changes in costs can only be effectively made at appropriate intervals. Meanwhile it could be contended that any such improvements may offset, or partly offset, increases in other directions.
The first objective in revising successive editions of the Tables is to keep them up to date not only with current prices and wage rates, but with current trends as just outlined. Therefore, whilst the understandable practice of making comparison with the costs of previous editions is recognized, due regard, when so doing, should be paid to the possible effect of such variations in addition to the more obvious changes relatke to prices and wages.
The revision of average prices of vehicles just referred to can affect the items of insurance, interest and depreciation whether or not there has been an increase in the particular item itself, which applies in the case of insurance.