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Hotorway Contractors Paid Rates Said to be Completely Uneconomic

3rd June 1960, Page 45
3rd June 1960
Page 45
Page 45, 3rd June 1960 — Hotorway Contractors Paid Rates Said to be Completely Uneconomic
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Keywords : Business / Finance

ALLEGATIONS that completely uneconomic rates were being paid to tipper operators, by the contractors for the Ross Spur motorway, were made to Mr. S. W. Nelson, Western Licensing Authority, on behalf

of the Road Haulage Association, at Bristol on Tuesday, when 14 members opposed the grant of a short-term B licence to Messrs. Price Bros., Swansea.

For the applicants, Mr. A. L. Lowth ;aid that they sought eight 7-ton tippers o carry gravel from South Cerney to the notorway for the contractors, Robert VI. Douglas (Contractors), Ltd.

Questioned by the Authority, Mr. W. T. ?rice said that the vehicles were new -nodels on hire purchase to Price Brothers. The vehicles had been working pn the project since May 12, although they were unlicensed because he had it sinterpreted a letter from the Authority. The contract rate was 8s. per ton less 5 per cent. Drivers were paid 14s. per load of about 10 tons, for a haul averaging 72 miles. •

Mr. R. B. Williams, chief buyer for Robert M. Douglas, said that the rate was one originally quoted by a South Wales haulier, which they considered satisfactory. Although advised by the Licensing Authority to contact the R.H.A. they had not done so because they already had enough offers of transport. Some 150,000 tons of gravel had to be moved by the end of July, at approximately 3,000 tons a day.

Questioned by Mr. T. D. Corpe, for the R.H.A.. Mr. W. Eyre, project manager for Robert H. Douglas, said that a rate of 14s. 6d. a ton delivered was agreed with independent gravel pits. This had now risen to 15s. 3d. He did not agree that, at 2s. a ton for getting the gravel, which left 12s. 6d, for haulage, they were making a very nice profit. They were charged 4s. 6d.-5s. a ton. The cost to operate their own lorries was 8s. 6d, a ton. He considered that receipts of Is. ld. per 'mile were reasonable.

Mr. J. F. Cox, assistant secretary, Western Area. R.H.A., for the 14 members, said that they were prepared to put at least 20 vehicles a day, at a rate of 12s. 6d. a ton, at the disposal of the contractor. He said that 7s. 6d. a ton

for a 7-tonner would not meet actual operating costs and even if 10 tons were carried it would not be a fair return for three journeys a day. Many vehicles were only making two trips.

They estimated la. 9d. a mile as a reasonable rate, with Is. 6d. as the absolute minimum for guaranteed work. The Bristol operators considered 15s. a ton as fair for this work, but they were prepared to accept 12s. 6d. If the proposed rates were allowed the effects would be disastrous.

Mr. L. R. Beattie, senior traffic examiner, said that on May 25, when investigations were made between South

Cerney and Ross Spur, 42 vehicles passed

through check points. Of 33 hired vehicles examined, 10 were breaking B-licence conditions, two were contravening C and one contract-A conditions.

It did not appear that drivers were working excessive hours, but there was evi dence of high speeds on return journeys, he said. Vehicles passed a car driven by the witness at speeds of up to 60 m.p.h. Of another 65 vehicles checked

silently, 33 were not displaying licences. Mr. S. J. Pedlar, secretary of Robert M. Douglas, said that the disclosures would

be conveyed to his directors. An immediate investigation would be held, but the next two months were crucial.

Mr. Nelson said that he proposed to grant the Price application, but the evi dence had disclosed a disturbing situ ation. The question of rates had raised an important point of principle. He accepted the evidence of Mr. Pedlar, but his company must realize that they could have been charged with aiding and abet ting. Be was not satisfied they were paying a proper rate, but too much time would be needed to collect detailed evidence. Steps would be taken to deal with the irregularities, he added.


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