They Missed the Bus
Page 11
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says K. Firth Butterfield, Who Thinks That Many Operators Will Regret NO Having Negotiated Voluntary Acquisitions
With the ET .C.
LTHOUGH the Transport Act was passed in August, 1947, from my experience it was not until July, 1948, that the haulage contractor took steps to find out his position under it. Even as late as September last year the director of a large haulage concern stated in a letter to me that he was of the opinion "that nationalization would never come."
The fact that many hauliers appeared to have heard nothing about voluntary acquisition until it was ton late was, I think, the tragedy of 1948. Those who did know of it refused, in many cases, to offer their concerns, and others had to be almost bullied into opening negotiations with the British Transport Commission. It was extremely difficult to convince them of the many advantages, which included a cash settlement and the saving of balancing charges.
Doubts and Fears
The general feeling was that these advantages were some form of subterfuge to make hauliers sell their businesses to the Commission. These benefits, they felt, were something of a mirage; after the sale had been negotiated they would vanish into thin air.
It was not until some of the big concerns, like Dutfield's and Holdsworth's, had added the letters B.T.C. to their titles that many hauliers were jolted into realizing that -not only was there such a thing as the Transport Act, but that nationalization had actually started, Because of general apathy and ,some misguidance from many who should have known better, this jolt was received too late. A few concerns saw the red light and started negotiations, but too many were inclined to emulate the ostrich and may now, I fear, be considering themselves unfortunate.
By June, when the majority of the larger concerns had been, or was, in the process of being taken over, the BT C. closed the doors on voluntary acquisitions. It was then that the rank and file realized that they had missed the bus.
Notices of compulsory acquisition were first issued in October. Even then the average haulier did little or nothing about his personal position. He merely changed his attitude from one of "do nothing—it may never happen," to that of "wait and see:' The Road Haulage Association startedvarious schemes for the guidance and assistance of its members, but even a large Association such. as the R.H.A. found it .difficult to break down the general apathy of its members.
Of all the voluntary acquisitions in which I was concerned, I did not meet one " volunteer " who was 'dissatisfied with his. settlement. Some of them had inflated ideas about the value of their concerns, but these were 'soon dispersed when it was found that the .B.T.0 could not be bluffed. into paying: inflated
prices. • In most cases, 'compensation for cessation of business was paid on three years' profits. Some of the smaller concerns received only two or 24 years, and there were the odd cases of four or five years' profits being paid, but these were the exception rather than the rule.
1%;Iot Over-generous
Compensation for pro perty• has not been over-genercius. Where the property has been 'owned by the director and not the concern itself, the B.T.0 has often refused to purchase, .merely offering to take it on a Short-term lease. ,
The Commission has made exceptions only where the site was of some use in the future. Its attitude towards the valuation of property has been that it must, of necessity, acquire many premises which, because of mergers and regrouping, will be of no use in the future. The tendency, therefore, has been to purchase at as low a figure as possible, as the Commission may have to re-sell at an early date.
The Town and Country Planning
Act, too, is having the effect of lowering the expected purchase price for undeveloped land. The application of this Act has given many concerns quite .a shock.
In connection with vehicles, the application of the word " betterment " is being interpreted in so many ways that its accurate definition is almost impossible. It is varying not only from fleet to fleet, but from vehicle to vehicle.
There is no doubt, however, that the settlements have been fair throughout. The vehicle-inspection department justly deserves the many kind comments which have been made about the thoroughness of the examinations and the impartial reports submitted by the inspectors.
Prices offered and accepted for equipment, stocks, office furniture and other assets have been reasonable, although difficulties have sometimes arisen through the drop in"scarcity value." Principal items which have been affected by this are the larger items of garage equipment and service engine units.
Pleasant Surprise' I have been amazed to .find that the average small haulier seems unable to assess the total value of his stocks to within 35 per cent. Many concerns have been pleasantly surprised when the final figure has been shown to them.
The lack of efficient store-keeping has to be seen to be believed. One wOuld have thought that theaecurate compilation of stock lists would have fully repaid the effort spent in
this work. Where there is inefficiency in the stores,, however, it is extremely difficult to be accurate
So much for the voluntary acquisitions. •What will happen under compulsory acquisitions remains to be seen In the former either side could withdraw from the negotiations at any time. Moreover, there was no right of appeal on either side, should one of them decide to break off the negotiations.
Under compulsory acquisitions, neither side can discontinue, but— and it is a very large " but "—a dissatisfied party has the right, of appeal. Just how much this right will be exercised depends largely on the B.T.C. and the Road Transport Ekecutive. It is my belief, however, that if the B.T.C.. continueS its negotiations in the reasonable .manner exhibited during the .past year. few. appeals will be .submitted.