Confiscation or Strangulation
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A Drastic Socialist Proposition to Legalize the Plundering of Efficient Business Enterprises
THE introduction of the Transport Bill to Parliament came unexpectedly early, and it belies most prophecies. Many thought that whatever radius of operation was arranged for long-distance hauliers would apply also to ancillary users and those holding B licences while carrying their own goods, and that; consequently, it would be reasonably high. Others considered that the limit might be low, but that the C-licensee would not be affected.
The position is, that if the Bill be passed no haulier, unless he obtains a probably rarely given permit, will remain free to operate beyond a radius of 25 miles, whilst traders and others carrying their own goods in their vehicles, and Blicensees while carrying such goods, will be limited to a 40-mile radius. This does not, however, apply to certain classes of work, such as ordinary furniture removals, the carriage of liquids in bulk in tanks, and the transport of meat, livestock and heavy indivisible loads, upon which there will be no limit.
It is 'important to note that there will be no restrictions upon the actual mileage performed within the 'aforesaid respective areas.
Passenger Transport's Turn to Come For the time being, no particular limitations have been imposed upon passenger transport (except the London Passenger Transport Board) beyond the statement that the Commission , is to arrange for the provision of adequate services and may prepare for any approved areas schemes of co-ordination. Other bodies may also be concerned, and this appears to indicate that certain of these, such as Joint Boards, may continue to function under the xgis of the British Transport Commission.
, This Commission is to acquire all road-haulage undertakings which, during 1946, were predominantly engaged in ordinary long-distance transport for hire or reward under A or B licences, long-distance carriage being defined as the carriage of goods for 40 miles or more in one or a succession of goods vehicles, if at any time during this carriage the vehicle or vehicles are more than 25 miles from their operating centre. Whilst the appointed day for transference to the Commission of railways and canal undertakings, including the L.P.T.B., is January , I, 1948, no dates are stipulated in connection with road haulage and public passenger transport. The latter dates need not, however, await the compensation arrangements, so that it will not do to be too optimistic regarding the possibility of delays in respect of the Commission's activities.
All compensation for the larger concerns is to be in British Transport Stock, but in the case of concerns the compensation value of which does not exceed £2,000, they may, if the recipients desire, be paid in cash. This appears to be to enable small owners to employ such capital in fields other than transport.
No Compensation Estimate for Road Transport The total amount to be paid to the railways and the L.P.T.B., is computed at £1,065,000,000, but no estimate is given of the cost of acquiring road haulage and road-passenger transport.
Compensation for the taking over of goods vehicles is to be based on the cost, at the date of transfer, of replacing such vehicles by new ones of similar type, with adjustments for age and condition. in addition, the value of businesses is to be calculated on the average net annual profit, and will not be less than twice nor more than five times such profit.
In general, the profit of any undertaking will be ascertained in relation to each of the past three financial years preceding the date of transfer, with suitable deductions for wear and tear and provision for replacement of the property concerned. The profits and any losses will each be aggregated, and if the total for the profits does not exceed that for the losses, the average net annual profit will be considered as nil. On the other hand, where a profit is shown, it will be divided by three. One year's interest at a rate determined by theTreasury on the net compensation payable for the property vested in the Commission will then be ascertained, and if this be equal to, or exceed, the estimated annual profit, that of the undertaking shall also be considered to be nil. If the interest be less than the annual profit, the difference will be taken as the average net annual profit of the undertaking. There are other and even more involved financial clauses governing the relationship of the compensation to the annual profit.
The British Transport Commission will be comprised of a chairman and four other members, all of whom must appear to the Minister of Transport to be persons of wide experience and shown capacity in transport, industrial, commercial or financial matters, in administration or in the organization of workers. The Commission will be given general powers to carry goods and passengers by rail, road and inland waterways, and to provide port facilities within Great Britain. In addition, it will be empowered to carry on any other activities previously performed by the various transport undertakings to be acquired.
The Five Executive Bodies Five bodies, known as the Road Transport Executive, the London Transport Executive, the Railway Executive, the Docks and Inland Waterways Executive, and, as from an appointed date, the Hotels Executive, will assist the Commission. Each Executive will be comprised of a chairman and not fewer than four nor more than eight other members. These Executives will act as agents for the Commission.
One proposal is that for Great Britain there will be a Central Transport Consultative Committee; and for such areas as the Minister may direct, Transport Users' Consultative Committees to consider matters affecting the services and facilities provided by the Commission. Separate Committees will be set up for Scotland and Wales.
• British Transport Stock issued in compensation is to be guaranteed by the Treasury, and the Commission will be able to issue further stock in order to borrow money for capital purposes. Such borrowing will be limited to £250,000,000. In addition, it may raise temporary loans not exceeding £25,000,000. A general reserve is also to be established, one purpose being to prevent frequent fluctuations in charges.
The Commission is to conduct its undertaking so that the revenue will not be less than sufficient to meet charges on revenue, taking one year with another, and a copy of its Report is to be laid annually before each House of Parliament. Apparently, however, the Minister will be permitted to suppress certain details.
Wild statements have appeared in certain sections of the Press regarding the number of vehicles and operators to be absorbed, although many others in the ancillary field, including B-licensees in part, will have their activities restricted by the limits on their radii of use.
At the end of 1945 there were nearly 200,000 licence holders operating about 450,000 vehicles, but of the former nearly 150,000 held C licences and owned over 300,000 vehicles. B licences numbered about 28,000 with 54,000 vehicles, whilst there were some 20,000 A and A-Contract licences representing some 87,000 vehicles. Of those concerned in haulage, a large proportion must already be operating within the stipulated radius. In vehicles, therefore, probably something like one-sixth would be taken, but it must be remembered that some of those undertakings which would be acquired have important interests in short-distance haulage.
It is impossible to ascertain as yet how the passenger-transport field would be affected. There were in this, before the war, nearly 5,000 operators of coaches, buses, and trofleybuses, and last year the total number of vehicles was some 53,000.
There is no doubt that the Bill is intended to impose drastic restrictions upon all private enterprise in the transport field. There is also great danger that it might be followed by other measures. but, presumably, it would take a considerable time before the full transference occurred and longer before the real effects were felt.
Competition in Short-haulage Field?
The bill, with its 13 Schedules, runs to 136 pages and is extremely involved. It seems, however, that the Transport Commission may find itself in possession of a considerable number of vehicles at present engaged in short-distance haulage, i.e., within the 25-mile radius. If it continues to operate these, it will become a strong competitor of " legitimate " hauliers who are already in this field—a situation, the effects of which would be terrible to contemplate. If our assumption be correct, this is one of the points which should be opposed with the utmost vigour.
The battle is on, and it must be carried to the last ditch. There must be no quibbling or sectional interests, no quislings hoping for lucrative positions at the expense of their fellows. goad transport, together with its hundreds of thousands of operators and employees; is fighting for its freedom and life.