ADVICE ON TRANSPORT PROBLEMS
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Persistence
1 Systematic tyre maintenance can save you money TYRE costs constitute an appreciable proportion of the total expenditure incurred in operating a commercial vehicle. For example, the new edition of "The Commercial Motor." Tables of Operating Costs shows that the tyre cost per mile for a 7-tonner is 1.54d. With the total operating cost per mile of this vehicle being 16.04d. (at an average of 800 miles a week), tyre costs are thus shown to account for almost 10 per cent of the total expenditure. On this score alone, therefore, tyres warrant close attention both in selection, usage and maintenance if a vehicle is to be operated to the best advantage at the minimum cost.
Justifiably it could be claimed that this contention applies to all aspects of vehicle operation and equipment. But there is this distinction where tyre costs are concerned. Real savings can be achieved by regular and systematic tyre maintenance at relatively low capital outlay which is of special advantage to small operators who, in aggregate, comprise such A large proportion of the road transport industry.
In compiling estimates of the life of vehicles and equipment in connection with successive revisions of the tables, conservative estimates are employed on the assumption
that small or medium-sized operators would not normally have had the comprehensive maintenance facilities and skilled staff that the larger operator could afford to install and employ. But in the matter of tyre maintenance, although some equipment is naturally necessary, it is persistence which is the prime asset in achieving maximum life and economies from tyre equipment. Moreover, the extent of the potential improvements possible through persistent tyre maintenance in terms of increased mileage life can be 100 per cent or more, which could be as great, if not greater, than the potential for improvement in the efficient use of any other item of vehicle equipment.
Tyres Much Improved
An added reason for giving detailed attention to tyre equipment is the substantial improvement in tyres generally in recent years. But full advantage of such improvement can be taken only if maintenance is adequate. Where this is obtained it usually implies that not only is the physical tyre maintenance competently undertaken, but also that such work is done on a systematic basis.
As is commonly known, many of the large passenger transport undertakings actually hire their tyres on a mileage basis, with the manufacturers being responsible for not only the tyre maintenance but also the supply of skilled tyre fitters. Obviously, under such a system, the tyre manufacturer will take every course open to him to extend mileage life backed by his specialized knowledge in this field. Accordingly the system adopted by such manufacturers could be of value to smaller operators even though because of their type of operation, they would not be able to obtain their tyre equipment under such an arrangement.
Provision for Replacement
In addition to carrying out the actual maintenance and any allied record system, provision should also be made for the ultimate replacement of tyre equipment, however long extended the interval may be. As with other items of equipment, and indeed vehicle replacement itself, expenditure on tyres is being accumulated with every mile run. Consequently, it is a worthwhile procedure to set up a sinking fund to which appropriate amounts of estimated tyre costs can be allocated each week. In this context it is significant that the cost of replacing a set of tyres on even a small van can be around £50, whilst for a multi-wheeler this can rise to £400 or more. Undoubtedly the main reason for many operators not setting up art adequate tyre maintenance and record system is the initial work entailed at the outset. Assuming nothing previously has been provided, then admittedly the inauguration of such a system does entail some routine and detailed work varying according to the size of the fleet. This arises because it is first necessary to obtain an inventory of every tyre in the fleet. Moreover, because of the possibility of transfer of tyres during any one day, it is necessary to arrange for this initial inventory to be taken at a time when all vehicles are back in the depot. With many hauliers this would make it necessary for the work to be done at the week-end.
Interchanging of Tyres Such an exercise, though admittedly necessitating staff being specially detailed for the purpose, has only to be undertaken once when the system is started. All subsequent work is both limited and routine—namely, the recording each day of any tyre transfers or replacements. Even where a large fleet is operated these would be relatively few on any one day.
Those familiar with the recommended vehicles cost sheet set out and explained in the tables will be aware that it is recommended that costing should be 'related to individual vehicles. Therefore it might seem logical that tyre costing and any record system related to tyre equip
merit should also deal with each vehicle as a whole. In practice, however, it is not possible to deal with tyre records in this manner because the initial set of tyres are soon separated in even a relatively small fleet. For a variety of good reasons tyres are soon interchanged between the several vehicles in the fleet, new and old.
Because of these several changes it might be considered that the individual costs would level themselves out as between one vehicle and another. But in practice it would not necessarily be the case and, more important still, any particular fault in a vehicle affecting tyre life may not be revealed in such a system of averaging.
In a fleet of vehicles of varying age the total tyre stock could be roughly divided into three categories—namely, new or relatively new, part worn and finally retreaded if such a policy applies. Whether or not it was the company's policy for its vehicles to carry a spare wheel, in any case it would be normal practice for a defective tyre to be handed back to the depot should damage occur on the road. In such an eventuality the actual replacement. the driver receives could, for a variety of reasons, come from any one of the three groups. But the actual cost of a tyre from any one of those groups obviously would vary substantially. If this total amount were charged to the particular vehicle concerned, purely on the basis of chance, there could be substantial underor over-charging, bearing in mind that a further change might be necessary at a later date. But apart from this disparity in the varying costs of replacement tyres, it would in any case be impossible to record the lives of an initial set of tyres of a particular vehicle on one record sheet because of the inevitable interchange between vehicles.
The Tyre Record Form Accordingly the whole basis of the recommended tyre record system is for the basic record—namely, the tyre record form—to relate to an individual tyre. It is for this reason that the initial step involves the taking of a complete tyre inventory. Regarding the actual layout of the form, as this particular one is required for internal use only there is no occasion for an elaborate heading as to the name of the company concerned. Therefore, the initial will suffice, together with an appropriate reference number, such as TR/T/1 indicating "Transport Record, Tyre, Form No. 1." Where several record forms are used such simple initials will facilitate both internal use and re-ordering of stationery.
With one form being used for each tyre, the distinguishing feature between one form and another will be the serial number moulded on to each cover, which could be entered in the right-hand top corner where it is more readily available. Incidentally, it should be noted that while it is common practice to refer to a tyre record system, strictly speaking such systems almost invariably record the mileage and cost of covers rather than complete tyres—that is, cover, tube and flap, assuming, of course, that tubeless tyres are not fitted. Accordingly the expression " tyre " is here intended to refer to a cover unless it is specifically stated otherwise. After the serial number has been recorded the size, ply rating, make and type of tyre will then be entered.
Having determined on a system of separate records for individual tyres the prime purpose of that form is to make possible the recording of each tyre transfer either from one vehicle to another or as between one position to another
on the same vehicle. When noting such transfers the accumulated mileage will also be recorded. This then makes possible the apportionment of costs on an equitable basis.
With this in mind the main section of the tyre record form is divided into eight vertical columns. In the first the fleet numbers of the vehicles concerned are entered. Then follows a note as to the wheel position. In the third and fourth columns are recorded the date and milometer reading when the cover was fitted and likewise the same details when it is removed to another vehicle or transferred to another position on the same vehicle.
From the entries so far made it is then a simple matter to determine the mileage operated whilst the cover has been in use in any particular position and this is then recorded in the next column. A further column alongside permits the entry of details as to the reason for its removal or possible disposal.
Total Cost of Cover
As distinct from the details relating to actual dates and mileages as to the transfer of a tyre, the final section of the tyre record form is devoted to the total cost of a cover throughout its life. Such total would include not only the initial price when new, or equivalent price if fitted as original equipment to a new vehicle, but any expenditure incurred on subsequent repairs or possibly retreading. Should the tyre be disposed of any amount then received
would be deducted from the total. As the total mileage run for each tyre is recorded until the time it is disposed of it is therefore possible to obtain the cost per mile for each cover by division of the total cost by the total mileage. The operator is then able to determine a fair allocation of the total cost of each cover as between the two or more vehicles to which it has been fitted, based on the actual mileage run. This final allocation, which is the prime purpose of the form, provides an equitable division of tyre costs in contrast with charging the whole of the cost of a new cover to whichever vehicle it happens to be fitted initially.
Where operators make use of retreaded tyres two methods are available for recording their use. With the serial number remaining the same after retreading the original tyre record form can still be used. In that event, as already stated, the cost of such retreading would be added in the appropriate column. The other method is to make out another form and so treat a retread in the same manner as a new tyre. It would then be advisable to prefix the tyre serial number with the letters RM to indicate remould and to avoid confusion with the previous record. Consideration of tyre recording will be continued next week.
FROM THE POSTBAG
Following recent discussions on track or system costs, much play has litetz made on whether or nut road transport is paying its proper share as regards taxation. A reader asks for comments on the present tax position and a breakdown of the total amount now being paid. * *
The three major constituents of total motor taxation revenue are motor fuel tax, motor vehicle and driving licence receipts and purchase tax, in that order of priority. For the year ended March 31, 1965, the estimated motor fuel tax amounted to £560 m.. whilst licence duties added £187 m. Purchase tax (which does not now apply on commercial vehicles) is now reckoned at £140 m.
Motor fuel tax was introduced as long ago as April. 1909, at the rate of 3d. per gallon. Though varying. it remained at less than is. until 1950 when it was raised to Is. 6d., whilst the current rate of 3s. 3d. has applied since November, 1964.
Purchase tax on commercial vehicles was introduced on July 1. 1950 and abolished on April 8, 1959.
MONEY MATTERS
BETs Distribution
HAD it not been for the penal rate of taxation it is quite probable that the "directors of BRITISH ELECTRIC TRACTION CO. would have declared a higher dividend in respect of the past financial year. Speaking at the annual meeting, the chairman, Mr. Harold Drayton, made this quite clear. After stating that because of amendments to Clause 78 of the Finance Bill it seemed unlikely that the company would be penalized to the tune of double taxation in respect of the dividend they did declare. Mr. Drayton added: "What an impossible position this is. It all arises under Clause 78 of the Finance Bill, and if I may my so, as bad a bit of drafting as ever I have come across."
In a reference to the recent wage claims and awards for bus workers Mr. Drayton commented: "In a full year the wage increases, which were introduced on May 10, add 61% to our labour costs, and the 40-hour week next April will add close on another 6%. making a total of nearly 121% ", which, as he pointed out, was in addition to the 61% increase a year ago. As he so rightly stated, all this makes nonsense of the Government's prices and incomes 31% "norm ".
On prospects of the current trading year Mr. Drayton is not prepared to make a forecast at this stage, but he will he disappointed if profits are not as good as last year's. Nevertheless, he believes that the dividend is safe enough. At around their present price of 47s. 9d.—they have been a firmer market in recent days—these 5S. "A" Deferred Shares yield a useful 61% based on the latest dividend of 621%, a dividend covered 1-7 times by earnings. In my opinion they should be retained.
Hopes that were founded upon the interim statement put out by DOWTY GROUP last January were not fully met by the results just announced for the year ended March 31 last. There was an effective increase in the interim dividend from 1.35% to 1-95%, but the final distribution has not been held at the equivalent rate. Nevertheless, the total for the year is stepped up from the equivalent of 4,8% to 5-2% tax free. This comes out of group profits. pre-tax, of 141 m. compared with £3-9 m. the previous year.
IN YOUR OPINION
The editor is always pleased to receive letters on all aspects of the road transport industry. Contributors must include their names and addresses, though the published letter may appear under a nom de plume where specifically requested. Views expressed in letters published are not necessarily those of the editor.
Mendip Tippers—the RHA View I FEEL sure that the letter from the managing director of Hobbs (Quarries) Ltd., published in your issue of July 23, was intended to set out his company's position and agreement clearly. Unfortunately, a very important part of the final agreement between the haulage contractors and the quarry was omitted.
On behalf of the Mendip Tipper Operators' Committee I am asked to correct what might be a wrong impression or assumption by pointing out that the agreement reached between Hobbs (Quarries) Ltd. representatives and the delegates of the Committee on July 14, 1965 contains an undertaking by that quarry to the effect that as from July 14, not only would the hauliers' rates schedule apply for all work over 60 miles, and for rates below 60 miles to be increased, but in addition all new business undertaken for distances below the 60 miles after July 14 would be paid at the hauliers' interim rates schedule or at any rate agreed after consultation with the Mendip Tipper Operators' Committee.
This, of course, was the most important concession which allowed for agreement to be reached, and was therefore an acceptance of the hauliers' rates schedule in principle with certain exceptions, rather than as might be read from the letter, a complete concurrence with the company's original offer.
Bristol, 1. J. F. CON Secretary, RHA, ‘Vestem Area Vehicle Ferries—Wrong Information I REGRET that wrong information was supplied to you for your feature "Guide to Vehicle Ferries (July 16) and hope that you will publish this correction respecting the method of charging, which should have read: Loaded Vehicles: 5s. 6d. per sq. ft. Vehicles with widths between 7 ft. 6 in. and 8 ft. 6 in. are charged at a width of 7 ft. 6 in. Returned Empty Vehicles: 4s. 3d. per sq. ft., based on the square footage of the outward journey.
The words "Ss. for empty vehicles, 6s. 8d. for exceptional vehicles** are erroneous and should never have been given you.
R. E SINFIELD,
Chief Shipping and Continental Manager, British Railways (Southern Region).
London, SW1,
Abolish Road Fund Licences • DO the Chancellor of the Exchequer and the Minister of Transport read your magazine? I hope they do and that they have not yet decided upon differential taxation.
I understand that the Geddes Report favours the abolition of A, 13 and C licences. I favour the abolition of all road fund licences for both cars and commercial vehicles. Thus the operator would cut down on overheads and the Chancellor could eliminate a vast department. As fuel consumption is related to performance, load and distance a little extra fuel tax would .be a more logical means of extracting the tax. Would this be disastrous from the operator's point of view? I should think that 3d. per gallon would more than satisfy the Chancellor's purse. This method would. if anything, promote the sale of vehicles on the home and export markets without increasing the traffic. Furthermore, the disc on the windscreen would be far better employed if it showed the third-party insurance certificate.
Eccleshall. Staffs. I. M. CLARKE.