TRANSPORT TIPS FOR TRADESMEN.
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Particularly Addressed to Those Who are Replacing Horsed Vehicles by Motors, oi Contemplating So Doing.
THE HOUSE OF COMMONS, having now definitely decided in favour of the new scheme of motor taxation, it is necessary for prospective as well as existing users of trade vehicles to consider how far the iutroduction of the new scheme is likely to affect their costs.
Consequences of New Taxation.
The great majority of users would have much preferred the retention of the petrol duty coupled with a moderate scheme of licence duties, because this would have more nearly reflected the use made of the road by each vehicle. However, it will be of DO use to cry over spilt milk if the Minister of Transport refuses to give u.p the new method of taxation, and it would be absurd to form exaggerated ideas of the injurious effects of the new schedule. I have heard people state recently that this would mean an addition of 10d., or a is., a mile to their operating costs. Such remarks, if credited, might well drive many prospective users out of the market, but, in point of fact, they are absolutely absurd. The tax for the largest type of petrol motor vehicle—namely, the five-tonner—is to be £30 per annum. Were this to represent is. a mile, it follows that the mileage covered during the year would be no more than 600; whiCh.corresponds to about 12 miles a week or two miles a day. Nobody in his senses would purchase a motor vehicle for the sake of covering such an in finitesimal 'mileage. Alternatively, if anyone has ever thought of doing So, it is all to the good that his decision should be disturbed, because; in any ca-se, his costs of operation would be exorbitant, and the commercial failure of his motor transport would be certain.
If we consider the lighter class of vehicle, the absurdity Of these wild estimates is all the more apparent. The tax on a van, weighing more than one ton, but not more than two tons unladen, is to be 221. At is. a mile, this would mean about eight or nine miles a week.
Some Typical Examples.
We shall be better occupied in considering the "actual effect of the tax in reasonable instances. First, . take the case of the light van weighing something between 12 and 20 cwt. unladen. The tax is to be £16. The standing charges for such a vehicle, including the wages ii.f.the driver, at well as depreciation, interest on capital, insurance, and rent, would probably amount to about 22s. a day. The running costs, including petrol, repairs and maintenance, lubrication, and the maintenance of pneumatic tyres, might be about 7d. a mile, of which petrol at 12 miles to the gallon might be responsible for about 3d. a mile. Suppose that the delivery work involves a. mileage of 30 per day, this gives a total running cost of 17s. 6d., or a total of standing and running charges approximating £2 for the day or Is. 4d. per mile. Now, if the mileage were increased to 70 miles per day, the total of running costs would be just over £2, and the total of running and standing chargestogether Would he 'about 63s. The cost per mile would then be somewhere between 1 c.d. and lid.
We may assume BOO working days in the year. If we take first. the small mileage-30 per day—we MS have a total of 9,000 miles per annum, in respect of which we pay a tax of £16, which amounts to about .4 of a penny per mile. Even if .the mileage were somewhat lower, the incidence of the tax would be not more than Id. a mile. Meanwhile, the remoral of the petrol tax ought to result in some saving, but if we assume that the price of petrol is raised, so that the petrol importer, and not the motor owner, gets the benefit, it still remains evident that, at the worst, the new tax is putting up the cost of operation from is. 4d. to is. 41d. a mile. With the larger mileage of about 70 per day, the tax, which is still the same amount, would correspond to less than id. a mile, raising the total cost from, say, 10d. to 100., and increasing our costs by certainly not more than 2i per cent. Next, take the case of a large van, carrying two to three tons, and paying £21 per annum in tax. There are few cases in which' such a van would average less than 20 miles a day. On that basis the standing charges might be about 32s. a day and the running costs about 9d. a mile, or a total of 15s. Standing and running costs together wculd be about 47s.' or about 2s. 4d. a mile. If tile Mileage were sanallein the costs per mile would be higher, and itwould seldom be worth while to use a, motor at all. Now, 20 miles a day for 300 days gives an annual mileage of 6,000, which works out af something between id. and, id. per mile for tax. Otir total costs, if we run a very small mileage, might, therefore, be increased by not more than id, a mile' say, from 2s. 4d. to 2s. 5d., or roughly 4 percent. Were we to run 50 miles per day, our total annual mileagewould be 15,000, and our total daily running costs would be between 37s. and 38s. Taking the latter figure, our daily-standing and running charges together would be 70s., so that the cost per mile would be rather less than is. 6d. The incidence of the tax, spread over this larger mileage, would be about id. per mile, and, if we add this to a total cost of about. Is. ficl. per mile, we see that our costs per inile are increased to approximately 2 Per cent. There cannot be many eases in which this .would make the, difference between profit and -loss.
The Return for Taxation.
Naturally, we do not, any of us, want increased taxation, but, if we have got to have it, then the main point is to see that the money is so spent as to benefit us. It is quite conceivable that, if the proceeds of the tax are wisely spent upon the raatis, the resulting improvement in road surfaces and foundations will mean -a very substantial saving in the operating costa of vehicles. On the other band, if the money is frittered away, it will mean no saving at all. It is in matters of this kind that the individual motor owner is powerless, but the big organization of owners may be able to do good work. People are inclined to wonder why they should pay their two or three guineas a year per vehicle to belong to some association. Here we have what should be a _conclusive :reply. Provided only that the motorist take,s:::sufficient trouble to see that his association really representS him, as distinct from merely representing the few people who serve on its Committees, it is certainly worth his while to contribute to a body which is able, in a sense, to supervise the expenditure of his money, bringing pressure to bear .throu0 Parliament and other means, if that expenditure is upon wrong lines.