RHA to Consider Request to Delay Rates Increase

7th May 1965, Page 56

7th May 1965

Page 56

Page 56, 7th May 1965 — RHA to Consider Request to Delay Rates Increase

Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Keywords : Inflation, Road Haulage Association, Politics

IMEXT Wednesday the national council IN of the Road Haulage Association will consider the Government's reference to the National Board for Prices and Incomes of the recent recommendation on road haulage rates: it will also discuss a request by the Minister of Transport that the effective date of the recommended increase (5 per cent from June 1) should be delayed for a period not exceeding four weeks. The RHA's decision to consider these matters next week followed discussions with the Minister.

A BRS spokesman said on Wednesday that, as contract members, they would await the RBA/ national council's decision before making any decision about their own proposed rates increase (see p. 55).

That road haulage rates had been singled out, together with bread, flour, soap and detergents, for reference to the prices board was first made known on Tuesday. Answering a question in the House of Commons, Mr. George Brown, , Minister for Economic Affairs, said that the Government had decided to make these the first items to be considered by the new board as they were all cases "of special significance for the cost of living or for industrial costs and give rise to special concern ". The board's decisions could be expected within six weeks to two months, he said.

Mr. Brown said three increases in rates had been recommended in nine months; the RHA had been asked to postpone the latest one. Representatives of the industries concerned had been told of the Government's intention and he was confident that they would co-operate to the best of their ability in the board's inquiries.

Mr. George Jeger (Lab, Goole) asked whether reference of these cases meant that Mr. Brown considered these increases unjust. Mr. Brown: "That would be quite wrong." The cases were picked solely for the reason's given; the right place to begin to try to break the inflationary spiral was prices, but he was also considering cases of incomes.

Liberal leader Mr. Jo Grimond pointed out that the RHA contended that part of the increases in its prices was due to Government action. If this was true, would the Government appear and give evidence in the matter when it was examined?

Mr. Brown: "1 am very clear that increases in prices are being passed on by a number of people without it being plain whether the increased charges reflect the reasons which are given for it. One of the reasons for having this inquiry is to see how much justification there is for the increases."

From Mr. Julian Ridsdale came the first sign of the Opposition's growing annoyance that nationalized industries have not been referred to the Board. Could Mr. Brown say why some of the recent wage increases in publicly controlled industries, particularly the Post Office, had not been sent to the board?

The place to try to begin to break the inflationary spiral was at the point of prices, replied Mr. Brown.

Mr. Robert Maxwell (Lab, Buckingham) asked whether the Minister intended that the industry should be forced to rescind price increases which the board found had been unfairly passed on to the public.

"Shall we at least wait and see whether that is the point we have reached ", said Mr. Brown.

When Lord Champion announced the inquiry in the Lords, the Earl of Dundee noted the heavy increase in the price of petrol last November and in the motor vehicle duty in April. These are bound to raise the cost of road haulage, said the Earl.

RHA to Consider Request to Delay Rates Increase

Page 56

Tags