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Hauliers
By R. Morton Mitchell, D.P.A., S.S.C.,
Chief Executive Officer and Secretary, Road Haulage Association
AT the beginning of 1957 one would have thought that the moderate or conciliatory policy of the Conservative Government with regard to denationalization of road haulage would have ensured the industry's freedom from further political inteference.
In looking ahead at the present time it is all the more exasperating to find that once again the country must take into account a possible attempt to nationalize or socialize road haulage, iron and steel, water, cement, sugar. engineering, shipbuilding and other national industries operating efficiently under private enterprise. So far as road haulage is concerned, such a policy must also involve restrictions on the operations of all road goods operators, whether they be professional carriers or C-licensees.
There is, perhaps, some slight solace in the fact that any attempt to carry out a policy of extending public ownership can hardly start until three years from now, even assuming a general election before the autumn of 1959. The lack of information as to the manner of carrying out the Socialist plans helps to avoid electoral hostility to nationalization; it also leaves any future Socialist Government free to implement its policy in any way it thinks fit within broad terms of reference, dependent upon the Parliamentary majority. .
The public and trade and industry have suffered severely from the high charges, waste and inefficiency of State-owned monopolies or near monopolies, and they do not want more of them.
Vindictive Politicians
Extreme elements in a Socialist Government might introduce legislation that would eliminate free enterprise entirely from road haulage and thereby deny traders the freedom of choice of transport. In any event, the prospect of road haulage and the road transport of goods generally becoming a political question again at the next General Election must fill all transport men with feelings of disgust for those individuals whose attitude towards the industry is incorrigibly doctrinaire, and whose intentions towards it are politically vindictive.
Fortunately, the future of road haulage during 1958 does not depend onfurther battles over public ownership. Of course, the industry must be ready for attacks upon it, but it is gratifying to find that the leaders of nationalized road haulage are no more anxious than are independent hauliers to become embroiled in politics. They appreciate the advantages of a competitive system, and may even concede that the stimulus of competition can help to bring a State-owned organization to a certain level of efficiency.
When an industry is passing through a period of stress, there is usually strong advocacy for co-operative action. Naturally, the Road Haulage Association have taken, and are taking, steps to protect all sections of the industry for the future. Soon after the publication of the Socialist Party booklets " Public Enterprise" and " Industry and Society," contacts were made with the leading organizations representing trade and industry, with politicians of all shades of opinion, and with the workers in the industry.
Probably most of the drivers of independently owned haulage vehicles are no more anxious to come under State control than are the hauliers themselves. Such drivers prefer the return for effort more readily available under private enterprise than under State ownership.
No advantage could be gained by rising to the Socialist bait of threatening to restore long-distance road haulage to public ownership. The need is to maintain the road haulage industry as a commercial success. That can be done only 'by being prepared to meet all the demands of trade and industry. This is not to say that the railways have not a part to play and, of course, this role is more necessary than ever in view of the money being spent on the railways by the Government.
Selling Service
The main object of every haulier is to sell his services in the best market. To do so he must bring his services to the attention of prospective customers and, having obtained the traffic, must show that he can carry it efficiently and economically.
For a period during 1955 and 1956 the R.H.A. embarked on a short campaign of prestige advertising. To the average haulier such a campaign could not be said to influence traffic towards his particular business. Nevertheless such high-level advertising did, in fact, have some effect on higher managements, and as a result a number of independent road hauliers received traffic which would have been carried by some other means.
Fuel rationing diverted traffic from road to rail, but so far as can be ascertained this was merely a temporary transfer. Since the R.H.A. campaign, British Road Services— no doubt backed by the great financial resources (borrowed or subsidized) of the British Transport Commission—have resorted to advertising on a grand scale.
The average businessman may question the policy of the B.T.C. of paying the cost of advertising B.R.S. to compete with British Railways. Of course, it may just be to stimulate efficiency by competition. The great Unilever empire encourages competition between its subsidiary companies to ensure effective competition with companies outside the Unilever group.
To combat competition from a State-owned organization exercising complete freedom as to charges, independent hauliers must work together. This does not eliminate competition, but enables a comprehensive service to be provided -in respect of a variety of traffic, distances and destinations.
The long-distance operators within the R.H.A.—many of whom were formerly with B.R.S.--are determined that the industry will extend interworking among hauliers, and they have prepared a code of conduct mainly to cover their own problem of sub-contracting.
Provided adequate powers of enforcement can be exercised, this code could bring about an entirely new outlook on the part of the road haulage industry. It will not get rid of Tate-cutting entirely, but it will give to the bona fidc haulier and to industrialists a standard of operation which will remove some of the present criticisms.
In order to have effective co-ordination, road haulage requires well-established undertakings in every main centre throughout the country. The R.H.A. Clearing House Group went a long way towards achieving, such a position, but several centres were still not covered satisfactorily. It is not enough to have a large haulier or clearing house in a town. The undertaking must be reliable in meeting its obligations in accordance with recognized standards.
The Clearing House Group of the R.H.A. has maintained a code of conduct which was intended Jo safeguard hauliers from the less reputable firms engaged in the clearing-house business, and to a large extent this aim was achieved. Any code of conduct for hauliers can be complementary to that of R.H.A. clearing houses.
Hauliers and Clearing Houses Combine
Joint activities by long-distance hauliers and clearing houses can provide complete coverage of the country on a reliable basis, and this will enable traders and industrialists to place any traffic with any R.H.A. member for delivery anywhere at the time required.
It is expected that during 1958 the co-operation between long-distance hauliers and clearing houses will make independent road haulage a more extensive national network than it has been in the past. It can give the best coordinated transport service while preserving all the benefits of a competitive system and the personal attention of individual hauliers.
The increase in scope for road haulage, as for industry generally, depends upon the prosperity of the country. Prospatity is affected largely by international trade. Now that the Government have tackled the financial position by strengthening the value of the pound abroad, by endeavouring to stabilize prices in this country and by entering the free-trade area in Europe, road transport of every kind will be involved to a greater extent than ever in international traffic.
Over a period, hauliers have been increasingly engaged in the interchange of traffic by road between this country and the Continent. Now that interest in this traffic is growing still further, many questions arise for settlement. The Economic Commission for Europe set up an International Transport Committee some years ago, and a Working Party of this committee has been trying to deal with the cornolex questions of licensing, insurance and Customs arrangements. Some progress has been made to enable a comprehensive insurance cover to be effective through various countries in which goods are carried.
Greater freedom of licensing necessary for the passage of vehicles through the whole of the free trade area is an ob;ective which may take some time to attain, but it is hoped that the Government in this country will soon be able to join in the arrangement for passing goods through Customs without specific examination at every international border.
If the challenge of the free trade area is met by traders and industrialists in this country, hauliers are ready to supply the transport required. There are difficulties regarding sizes of trailer, different authorized axle weights and conditions of the roads. But through the various international organizations which are tackling these problems it is likely that many of them will be overcome this year, and there should be •a beginning to more regular passage of road vehicles between this country. and Western Europe.
Such traffic may well be extended to countries beyond the Iron Curtain, because at international meetings one finds not only road transport interests of Western Europe represented, but also those of such countries as Yugoslavia and the German Republic. Poland has also indicated its interest in this matter, so that the free trade area and the passage of vehicles between this country and the countries of Europe may not only be a healthy industrial sign, but should encourage a more peaceful outlook for the future through a closer knowledge of each other.
Apart from the great problems of ownership of the industry, co-operation and international transport, hauliers will have to meet during 1958 the problems arising from renewal of special A licences, and even those arising from renewal of ordinary A licences. In recent times the Transport Tribunal and Licensing Authorities have tended to use Section 9(4) of the Transport Act, 1953, in a way which could alter the confidence that has previously existed in the continuity of an A licence.
-This section was introduced into the Act of 1953 much against the wishes of hauliers. When the Bill was being considered in Parliament it was pointed out that to give a Licensing Authority power to suspend or revoke a licence merely because the full purposes for which the licence was originally granted had not continued to apply, would make it extremely difficult for any operator to carry on his business in the general way intended by the Road and Rail Traffic Act, 1933.
The Bogy of Normal User
The tendency has apparently grown to look upon the normal user, upon which the issue of a licence is based, as if it were a condition of a licence. That was never intended. It was apparent that a haulier with a public carrier's licence could not be expected to be restricted to carrying entirely in terms of his original "normal user" over a period of 5, 10, 15 or 20 years. Experience has proved this to be so; changes must inevitably take place when variations occur in the volume and nature of industrial production.
No normal user was applicable to special A licences. When vehicles were purchased under the Transport Act, 1953, the B.T.C. saw that no traffic was available specifically for the vehicles purchased. The Commission were naturally concerned to retain the traffic themselves and the purchaser of denationalized vehicles had to build up his business over a period of years.
It is hoped, therefore, that no attempt will be made by Licensing Authorities or by the Transport Tribunal to try to tie the renewal. of special A licences to any particular traffic carried by B.R.S. immediately before they were granted, supposing it to be possible to trace a record of such traffic. A policy of this nature would make it impossible for practically every holder of a special A licence to justify a renewal.
Despite the problems which always affect road haulage, by its nature, :thereis every reason to expect that during 1958 trade and industry will improve, international transport will develop, the threat of renationalization will not have any depressing effect and that at the end of the year hauliers will be able to look back on 12 months of 5011-.3 prosperity.
Of course, hauliers will find competition, and whether traffic is gained by independent operators or B.R.S. viII depend upon efficiency, economy and personal service. In these, free enterprise has always been able to succeed, and there is no reason why it should not succeed again to an even greater extent