R.H.A. Denationalization Scheme
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Priority for Those Compulsorily Taken Over Limit on Tonnage to be Bought
THE Road Haulage Association this week published its plan for A the denationalization of road haulage. It has already been submitted to the Government. It provides for the return of acquired undertakings to free enterprise in four stages. Those whose businesses were compulsorily acquired would be given the first chance of re-entering road haulage.
The plan provides that the total tonnage of vehicles purchased by a haulier shall not exceed the licensed tonnage operated by him at the date when his business was transferred to the Road Haulage Executive.
The Association's memorandum with existing hauliers whose businesses declares that the 25-mile limit should be had not been acquired, should, says the
abolished forthwith, and that, as from R.H.A., be allowed to buy the a date to be specified, all goods vehicles operated by the British Transport Commission should be deemed to carry .A licences in the areas in which they are based. All vehicles, equipment and premises embraced in the R.H.E.'s undertaking should be sold to free enterprise. Non-operational vehicles (estimated to number about 3,000) owned by the Commission, should not automatically qualify for A licences.
No Proof of Need
Every purchaser of vehicles .would receive a separate licence, and would be entitled to its renewal, without proof of need, for such a period as would ensure its continuity for at least five yeafs from the date of physical transfer to the purchaser.
The first stage of disposal of the R.H.E.'s assets would be the sale of vehicles, premises and equipment to former owners of compulsorily acquired undertakings, and to those whose businesses had been partially or totally acquired as a consequence of the refusal, variation or revocation of permits.
Businesses formerly owned or controlled by the main-line railways, which were automatically transferred to the B.T.C., would, the memorandum declares, appear to be entitled to be considered as having been compulsorily acquired, [This includes Pickfords.] Where an acquired business had more than one proprietor, those persons should have the right, collectively or individually, to apply for re-entry into the haulage industry,
No Extra Tonnage
Throughout the memorandum, the Association insists that no one buying back vehicles and plant should acquire a total tonnage exceeding that operated by him on the date when his business was transferred to the R.H.E.
The aggregate tonnage available to the several former owners of businesses should not exceed the tonnage previously authorized, and the ratio of the interest of any individual should be approximately equal to that formerly enjoyed. If any person did not wish to take up his quota, the other interested parties in the concern should have the right to acquire up to the maximum tonnage previously operated.
In the second stage, former owners Pe-established at stage one, together A28 remainder of the vehicles, premises and equipment held by the R.H.E.
"The object at this stage should be to ensure that all the vehicles operated by the R.H.E. are disposed of within the existing industry," says the memorandum. It also states that maximum efficiency and economy could be obtained only in businesses of medium size, and this should be remembered in allocating vehicles.
If, after the fitst and second stages had been completed, assets still remained, those who sold out voluntarily to the B.T.C. should be allowed to apply for them.
Anything remaining after these three stages had been passed should be offered for sale by public auction at the earliest possible date. Vehicles should be sold individually, without licence.
In the first three stages, the vehicles purchased would have to be those based in the traffic area in which the A licence was issued to the B.T.C. If the number of vehicles applied for in any area exceeded the tonnage available, applicants could be offered vehicles based in other areas.
The memorandum recommends that a disposals board should be set up to sell the R.H.E.'s assets. Free-enterprise road haulage, including the Road Haulage Association, should be adequately represented on it.
Land, buildings, machinery, plant and equipment should be valued as at the date of transfer. Stock should be sold at cost. price or maiket value, whichever was the lower.
New vehicles purchased by the B.T.C. should be valued at cost, less depreciation at 25 per cent, per annum. Vehicles taken over by the B.T.C,on acquisition 'should be valued on the basis ot cost to the B.T.C., less depreciation at 25 per cent, a year, subject to an addition or deduction if the vehicles were better or worse than normal.
The R.H.A.'s plan provides for continuing operation without disturbance to trade and industry. .
Employees, of the R.H.E. will be given every oppOrtunity to return to free enterprise under the protection of the existing statutory machinery cover ing wages and conditions. .
"It is intended; moreover," says the memorandum, "that consultation should take place with the appropriate unions, so that management and workers may together take pride in rebuilding their industry and providing the most efficient possible service its the public." .
Not in Danger
Answering questions at a Press conference, in London, Mr. Frank F. Fowler, national chairman of the Association, said that he did not think the new Government's small majority would jeopardize the denationalization of road haulage. He thought that the Association's plan could be completed
in 12-18 months. The Conservative Party. before the election, had promised that a short Bill would be introduced at an early stage to give power to sell the R.H.E.'s assets.
In answer to another question, he said he was led to believe that the acquisition of businesses due to take place this month would be stopped.
In buying back the R.H.E.'s assets, no payment was proposed for goodwill, because none existed. Mr. Fowler said, however, that purchase should be on the fairest possible basis.
Benefit to Exchequer
Mr. tt Winterbottom, a vice-, chairman, replying to a question on the public money that would be lost in selling back vehicles and plant to free hauliers, said that if the Government felt that the Exchequer would benefit by taxation on the profits of freeenterprise hauliers, it would probably be pleased to wipe out the expenditure of the B.T.C. on "goodwill."
Explaining why the Association's plan discriminated against those who had sold out voluntarily, Mr. Fowler said that if they had held out against nationalization, the appointed day might have been deferred.
Mr. R. B. Brittain, chairman of the public relations committee, said he hoped that when haulage was restored to free enterprise, C-licence operation would diminish.
[Janus, political correspondent of "The Commercial Motor," will deal more fully with the scheme next week.]