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FRENCH BREAD, BRITISH CRUSTS

28th September 1995
Page 7
Page 7, 28th September 1995 — FRENCH BREAD, BRITISH CRUSTS
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Which of the following most accurately describes the problem?

ow do they do that?" Fans of the popular BBC program might well ask that very question following the news that French hauliers are to push up their prices by 10%. Of course the French can get away with it. They operate a minimum haulage rate which is fixed by an agreement between the four main haulage associations and the Government. It could never happen here. of course—not in little old Thatcherite, free-market, dog-eat-dog entrepreneurial Britain. What French hauliers have is close to a cartel. "Zat's zer rate for zer job—and zat's what you'll pay..." To the average UK haulier faced with no rate increase over the past three years and none on the horizon, it must sound like a fairytale. But the trouble with a minimum rate is that it does nothing for service. If the lazy operator gets the same rate as a conscientious one, why make any kind of effort when it comes to service? Right now any British haulier who does offer a good service is fighting an uphill battle when it comes to competing against the rate cutters but we all voted for a free market and that's exactly what we've got. 1905-1995

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