R.H.E. Accounts "Alarming," Says R.H.A. Chairman
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A N alarming state oi affairs in the ri administration of nationalized road transport was disclosed by the second annual report of the British Transport Commission, said Mr. Frank F. Fowler, national chairman of the Road Haulage Association, at the Association's annual conference at Scarborough, last week. Although the Road Haulage Executive's fleet had increased more than four times from 8,000 to 35,000 vehicles, the gross receipts for 1949 weie less than three times the 1948 figure.
In 1948, when the acquired undertakings were operating much on the lines followed before nationalization, net traffic receipts were about 10 per cent. of gross receipts, which compared favourably with the results of normal commercial operations. In 1949, net traffic receipts were less than 4 per cent. of the gross revenue. It was highly significant, Mr. Fowler added, that between 1948and 1949 net receipts advanced only from £1,131,219 to £1,431,721.
UNECONOMIC OPERATION
Unless restrictions on the activities of free hauliers were lifted immediately. many operators would be forced to offer their businesses for acquisition and. consequently, for operation by the R.H.E. on lines which, Mr. Fowler submitted, were clearly shown to be uneconomic. Figures now issued by the Commission gave added force to the Association's demand that steps should be taken by the Government to hold an immediate investigation into the operation of the railways and that the road haulage industry should be handed back to free enterpese.
Discussion at the conference showed that there was not unanimity of opinion on the subject of grouping. This principle was supported by Mr. J.M.Horrocks. but Mr. H. Walker thought that hauliers should hesitate in doing anything which would tend to extinguish individuality.
Other speakers suggested that any trend towards amalgamation would make it easier for the Government to extend nationalization. Mr. R. II Farmer stressed the need for evolving some common system, so that, under interworking, customers would enjoy the same conditions as those granted by hauliers operating individually.
The conference agreed that:—
(I) The 'Government should be asked to direct nationalized industries to refrain from replacing hauliers' services by C-licensed vehicles (2) The granting of permits should be the duty of Licensing Authorities.
(3) The Minister of Transport and all political part:es should be asked to ensure that original permits were automatically continued at the end of the first I2-month period. (4) The radius of operation of free hauliers should be extended, but no specific distance was laid down.
(5) Before approaching the Minister of Transport on the question of unfair competition with hauliers by farmers holding C licences, the National Farmers' Union should be consulted, (6) No action should be taken on the proposal that all applications for contract A licences should be subject to pubic inquiry.
(7) Vehicles should be added to the fleet of the R.H.E. only on proof of need, and if additional vehicles were to be placed on the road by the Executive without licences, they should be limited to operation outside 25 miles.
(8) Insurance premiums for Aand B-licence vehicles should be reduced to the level applied to C-licence vehicles.
(9) The Association of Municipal Corporations should be approached with a view to the incorporation of a rise-and-fall clause in all haulage contracts.