Nation's Transport Costs
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Purchase Tax Affects Compensation for Hauliers: Isle of Man to Evade Extra 9d.
IT is estimated that the extra 9d. a gallon duty on fuel, the 331. per cent.
• purchase tax on goods vehicles and the I63per cent, increase in railway freight rates wilt raise the cost or transport by at least £105,000,000 a year. The Minister of Transport, who announced the increase in railway charges after the divisions on the Budget, denied that it would have a substantial effect on the cost of living.
He said that the new railway charges, which will come into force on May 15, were estimated to yield another £27,000,000 a year. This sum was half of I per cent, on the country's output of manufactured products.
The price of steel is expected to rise by from 9s. 2d. to 10s, a ton.
The imposition of purchase tax on goods vehicles as from May I affects the compensation to be paid to hauliers whose businesses are taken over on or after that date. Section 47 41) of the Transport Act specifies that compensation shall be "equal to the cost, as at the.date of 'transfer, of replacing the vehicle by a new vehicle of a similar type," less an amount for depreciation and with an adjustment in cases where vehicles are in a substantially better or worse condition than the average.
The matter is one for consideration by the British Transport Commission and it seems unlikely that the -Road Haulage Executive' will act on the Budget Resolution; under, which 'purchase tax was imposed: It is probable that the R.H.E_ will waif until the
Finance. Bill is passed. • Hauliers whose businesses were taken over before May 1 will not, of course, receive the benefit of increased com pensation. . • The Measham Sales Organization told Mr. K. Firth Butterfield, of Ashby de la Zouch, a leading valuer, that prices of used commercial vehicle's were not expected to rise materially. Therefore, the question of additional payment for betterment is not likely to be affected.
Sir Geoffrey Bromet, the LieutenantGovernor of the Isle of Man, is, considering how a seherne can be devised whereby a rebate 'on the inereased petrol tax can be given in respect of commercial vehicles in the island.
There were 'protests against the imposition of the extra duty when the proposal was put before the Tynwald Court. One member said it was done for a specific object in England which did not apply in the Isle of Man. The Lieutenant-Governor said he did not wish to impose a burden on industry • which might add to the cost of living, and he was considering the question of a rebate for inclusion in his Budget in June. He pointed out that heavy oils were not taxed in the Isle of Man and he did not propose to introduce that tax.
The additional tax of 9d. per gallon on light hydro-carbon oils was then agreed to.
Users of transport continue to point out the serious effect on the general cost of living of the Budget provisions affecting road transport.
A resolution passed last week by the National Council of the Traders Road Transport Association declared that "the effect clearly is in fundamental conflict with the Government's declared policy of increasing production, decreasing costs, of production, the avoidance of an increase in the cost of living and the continued expansion of the nation's export efforts."
An emergency meeting of the committee of the Dumfries and Galloway Centre of the Scottish Motor Trade Association drew attention to the importance of adequate transport of all kinds in agrfcultural districts. Italso stressed the fact that the motor industry was already working below capacity.
An emergency resolutja,nprotesting against the Budget proposals affecting commercial vehicles was passed by the National Chamber of Trade at its annual conference at Llandudno last week. Mr. Stanley Perring, who proposed the resolution, said that retailers were prevented by maximum-price Orders from passing on increased costs to the public.
Drawing attention to the folly of trying to direct exports by means of purchase tax on home sales, the Society of Motor Manufacturers and Traders said that the London dock strike was holding up exports of lorries. "That avenue of export being blocked." the S.M.M.T. stated. "the vehicles affected can only go to the home market, which should act as a buffer to absorb export fluctuations."
In a message to the company's employees, Sir Graham Cunningham, chairman of the Triplex Safety Glass Co., Ltd., said that the higher price of