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THOSE UNNECESSARY COSTS

7th October 1966, Page 67
7th October 1966
Page 67
Page 67, 7th October 1966 — THOSE UNNECESSARY COSTS
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Which of the following most accurately describes the problem?

Inevitably the railways were represented at the London conference. So far as can be judged from reports of the discussions road transport was ignored although it is by far the most important element in British transport. The significance of the omission is all the greater when seen against the background of Mr. Powell's suggestion that what trade and industry should really seek is an increase in profits. Possibly the most glaring examples of unnecessary costs and therefore diminished profits are to be found in the transport arrangements of firms which are in other respects considered highly efficient.

Road operators have taken what opportunities there are of making the point. The campaign for quicker turnround has been conducted enthusiastically. There is a strong .body of evidence of delays at docks, factories, warehouses and shops. News of a forthcoming conference on productivity in agricultural transport—although once again the title would cause Mr. Powell to shake his head sadly—leads one to suppose that farms, granaries and mills will soon be added to the list. There are even examples of one or two firms that have included adequate arrangements for dealing with vehicles in their plans for development.

Apathy remains the prevailing state of mind. The clue may lie in Mr. Powell's reminder that profits are the real spur rather than productivity. Except where his own vehicles are concerned the average trader or manufacturer still needs persuading of the advantage to him of spending money and providing space to augment the profits of the carriers who serve him. The argument that he has to meet the extra costs himself in the long run has a long way to penetrate.

Inadequate arrangements at terminal

Tags

People: Powell
Locations: London

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