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JANUS

3rd January 1964, Page 62
3rd January 1964
Page 62
Page 62, 3rd January 1964 — JANUS
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Which of the following most accurately describes the problem?

WRITES

MAKERS of electrical equipment cannot imagine that they have been shown up to advantage in the latest report from the Monopolies Commission. The impression which it leaves is the more damaging in that in some cases the report reinforces the opinions freely expressed by operators for many years that they are paying too much for components. They usually make the complaint when they have other faults to find, and this may help to account for the criticisms which are made about price, since anger at a breakdown and consequent loss of earnings could easily sway other feelings.

The Commission do not have a great deal to say about quality. This is natural in that prices and profits were their main consideration. For reasons which I have suggested, operators will not bother to keep the points separate in their own reaction to the report. They will note that there is a complete monopoly for certain classes of equipment, and restrictions on competition for others. They will see that substantial profits are made, and that the cost of the original equipment to the vehicle manufacturer is only a fraction of the price at the garage. They can hardly have failed to notice the headlines drawing attention to the Commission's recommendation that resale price maintenance should be terminated.

LESS PATIENT NEXT Time

With these and other damaging facts and comments firmly planted in their minds, operators will be less patient than ever the next time something goes wrong with the electrical components on their vehicles. The report coincides with an unusually sustained volume of criticism at the present time about commercial vehicle equipment in general. Operators are complaining at the frequency with which batteries and starters fail to work even when new. As might be expected, electrical equipment is not the only target In a slightly different context, operators allege that handbrakes are ineffective for many of the purposes for which they ought to be designed, which include their use as an emergency braking system.

The relationship between vehicle manufacturer and user is bound to be difficult on occasions. There is always the danger that it will deteriorate into open hostility. It would be particularly regrettable if this should happen within the commercial vehicle industry at this juncture. Both sides of the industry have other problems of their own, and in ]964 there will be the added complication of a general election, as a result of which a Labour Government might be returned. In such an event, there is a direct threat to hauliers, a possible threat to C licence holders, an indirect threat to manufacturers if the steel industry is renationalized, and a more remote but not negligible threat that the Socialists will also take over sections of the motor industry.

Vehicle manufacturers are justly proud of their production and export record. Commercial operators are equally convinced that they provide a vital service to the community, and that the value of this service is increasing as R28 the power of the railways wanes. A proper balance between each element in the road transport industry is essential for the greatest efficiency. It would be useful therefore for manufacturers and operators to have a general discussion of their problems, and make a concerted effort to ensure that the producer is kept informed of the precise needs of the consumer.

There is abundant evidence that both sides of the industry are properly appreciated. Professor Buchanan's praise of the goods vehicle and of its role in modern society has not been disputed. Operators such as Mr. D. 0. Good, chairman of the Road Haulage Association, have expressed their confidence in the ability of the manufacturers to produce the new vehicles yvhich will be required in the motorway age. The Ministry of Transport is considering raising the maximum dimensions of orthodox goods vehicles, and is also discussing a more rational system for fixing maximum weights.

A CONVENIENT TOUCHSTONE Plating will provide a convenient touchstone for assessing the extent to which manufacturers and users are prepared to co-operate. Both have an interest in urging that the permitted laden weights should be as high as possible; it gives the manufacturer a strong selling point and it increase.s the operator's payload, On the other hand, neither of them would want the maxima to be fixed at too high a level. The manufacturer would be reluctant to guarantee a performance better than that of which he knows his vehicle to be reasonably capable. Operators dislike loading vehicles beyond their strength, on grounds of efficient operation as well as road safety, and dislike just as much seeing the opportunity made available to their competitors.

The proper treatment of existing vehicles will be an even more delicate issue. The user will expect his vehicles to be plated in accordance with a general agreement on types. If the agreement is on the whole more generous than the present limits recommended by the manufacturers, they will be tempted to propose lower figures for existing vehicles. This will provide an inducement for earlier replacement than usual, a point which one may be certain has not escaped the notice of both the manufacturers and the users.

It would be pleasant to think that the two sides could come to their own decision on this point, instead of leaving the Ministry of Transport to act as arbiter.. Co-operation is in the fashion in many fields of transport, and can nowhere be more appropriate than between the tool-maker and the artisan. Although not entirely unexpected, the report of the Monopolies Commission must have perturbed the manufacturers of vehicles as well as of components. They should actively seek opportunities to prove their willingness and ability to act in the public interest, which in this instance presumably means the interest of vehicle users.


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