Continental competition
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We run an overland transport service from England to Turkey and the Middle East. Six months ago we were asked to tender for a movement of Albion parts from Glasgow to the South of Turkey, having a target of about 600 tons for 1968 and 1,300 tons for 1969. Seventeen hauliers from four different countries put in tenders for this contract.
Due to very heavy transport taxes—£80 per trailer one way to Yugoslavia and £80 to Austria and Bulgaria—we knew that we as a British transporter could not compete with European hauliers since all of them have reciprocal road tax exemptions with each other.
By having the most efficient service, the contracting parties, much to our surprise, insisted that we had the contract at a rate which was 20 per cent higher than the highest tender. Even so, we still find it very difficult to compete owing to the circumstances that prevail in this country.
We have permits to operate at 38-ton gross vehicle weight from all European countries, including Iron Curtain countries, with the exception of the UK which limits us to 32-ton gross vehicle weight. Our specialized vehicles weigh 15-16 tons when empty, and with the limits imposed here it means that we would only be able to take 16 tons payload to Turkey whereas a Continental haulier having 38 tons limit Would be able to carry a payload of 22 tons.
Since the British haulier runs the risk of losing his licence to operate if he operates above 32 tons even when his vehicles . are built to operate 42 tons gross vehicle weight, the Continental haulier is not worried about his licence, since he is licensed to operate at 38 tons and over in his own country. Therefore, a Continental haulier has a considerable advantage over his British counterpart on two counts: (1) exemption of taxes along his route on the Continent; (2) more than 30 per cent more payload.
Low-loader-type vehicles can travel in this country above the permitted 32-ton gross vehicle weight and we have approached the Ministry of Transport to be allowed to operate under the same conditions at the moment, since we understand that the gross vehicle weight is likely to .be raised in 1969. Would it not therefore be reasonable for the Ministry of Transport to allow special dispensation for export traffic now rather than lose it to the Continental operators? A loss that might never be regained! These arguments have been put to the Ministry of Transport and to the Board of Trade along with the fact that should these movements be carried out by a British haulier it would mean invisible earnings of foreign exchange.
Until the British haulier is allowed to operate and compete on the same terms as the Continental hauliers we will be at a great disadvantage and valuable foreign exchange will be lost.
We therefore would like to draw your attention to the facts and ask your assistance in any way you can to get the authorities to treat these problems as a matter of urgency.
M. SHERIF Director, Turkish Trading and Transport Co. Ltd., London, El .