THE C-LICENCE PROBLEM—
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No Easy Solu tion
WHAT would happen if the present system of C-licensing were drastically altered to allow traders and manufacturers to carry each other's goods? According to some critics of the existing law, this would solve the problem of empty running and provide a more efficient road transport network for the country. This may appear sound reasoning on paper, but a closer look at the problems facing both hauliers and C-licence operators reveals many flaws in the theory.
One point which must not be overlooked is that the economy of the country is geared tor inflation, so it is difficult for manufacturers and traders to lock up large sums of money in stocks. In fact, some manufacturers are having to work on a 36-hour stock, which means that unless they run their own vehicles their supplies cannot be maintained. Certainly hauliers cannot be expected to have lorries hanging on a peg" for calls at such short notice.
Hoist by Their Own Petard
It must also be remembered that a C-licence operator values the independence which allows him to send vehicles when and where required without consideration for anyone else. Possibly, then, the only outcome of amending the law would be to increase the number of C-licence vehicles on the road—the very thing the reformers are trying to avoid.
At the moment, C-licensees are being used as a scapegoat by the British Transport Commission to excuse the sorry financial mess in which British Railways find themselves through losing traffic. But it is unfair to blame this failure on the C-licensee, for many other factors have contributed to it.
Mr. Harold Watkinson, Minister of Transport, has already rejected any idea of controlling C licences to protect the railways, pointing to other matters which should be remedied. He has stressed the need for an all-out drive by the railways to improve their service—and to sell it.
The railways were aiming, he said, at better traction, improved braking and less marshalling. The amount of transhipment should be cut to a minimum and the use of pallets and special containers should be increased. There was no doubt that the railways could solve their problems in time, but the future of the undertaking would be settled in the next few years, which meant that there should be no undue delays.
Although the number of C licences issued in 1957 exceeded lm. for the first time, he did not think the answer lay in controlling this form of transport. The dbrrect remedy was to revitalize the railways so that traffic more suited to rail could be carried cheaply and efficiently. This object would be helped by the modernization plan, which should attract a large share of the traffic now being carried under C licence.
It is a pity Mr. Watkinson did not mention that the average loading of the standard 13-ton railway wagon for general merchandise is about 3 tons, and that about 60 per cent. of rail freight traffic consists of coal carried in trucks which are returned empty to the collieries.
However, this might have lent weight to Socialist arguments that too much emphasis is laid on corn 820 petition, which prejudices the prosperity of the Commission. These reformers would like to see C-licensees restricted to a 25-40-mile radius and the B.T.C. given a . free hand to expand their facilities without hindrance.
Any move to stop the C-licensee creaming the traffic would require a great deal of new legislation and would revolutionize the whole goods licensing system which has been carefully built up over the past 25 years. Before considering steps in this direction, it might be a good idea for an all-party delegation to visit West Germafiy and study conditions there.
West Germany's population of 48m. is only 1 m. less than that of Great Britain, and the railway network is very similar to that of British Railways—we have 19,276 miles, whilst German Railways, after 75 years of State ownership, . have19,000 miles. Almost sufrounded by land frontiers, German Railways have never tackled road transport on a large scale, although they have about 1,000 lorries which are used for a variety of purposes including some longdistance work.
Collection and delivery are almost entirely in the hands of contractors, and it seems there is no such thing as road– rail co-ordination involving through rates. For the most part, long-distance road transport in West Germany has to operate at rail rates. About 11.5 per cent. of the country's ton-mileage is operated by professional long-distance hauliers, and 4.2 per cent. is done by the long-distance equivalent of the British C-licensee.
West German Licensing For shorter distances, professional hauliers need only formal registration if they keep within 50 km. of their base. The C-licence operator cannot carry traffic for third parties. West Germany's road haulage businesses are small, with 80 per cent, of the operators owning only one or two vehicles. However, nearly three-quarters of the vehicles travelling long distances have trailers, which is a far higher percentage than in Britain.
By an Act passed in 1952, the number of long-distance licences is limited to 15,856, of which the railways are allowed to hold 31 per cent. About 29,000 C-licence vehicles are used on long-distance work by 11,500 concerns, which means each owner averages 2.5 vehicles. At present, West Germany has 3,900,000 vehicles on the road, of which 473,000 are lorries, compared. with Britain's 1,070,000 lorries out of 5,600,000 vehicles (excluding mo.torcycles).
Although there' are, few restrictions on short-distance wOrk, where long distances are concerned the control is tighter. The licence issued to a haulier is governed by his capacity to do the work, maintenance of his vehicles, traffic requirements and other matters. Rates are controlled by the Federal Institute of Long Distance Road Haulage, who are able to -keep a close check on charges beeause they receive copies of documents for every transaction.
A tax amounting to 6.5 per cent. of the gross rate has to be paid, and there is compulsory goods-in-transit insurance. About 20 per cent. of the total hauliers' licences in force are limited to a radius of around 150 km.
The works traffic (C-licence) operator may carry his own long-distance traffic on his own vehicles and,
although he does not require a special licence, he must notify the controlling authority of all vehicles with more than 4 tons' carrying capacity. Taxation is reckoned on a basic ton per kilometre scale, and copies of all documents relating to work done by vehicles capable of carrying a ton of more have to be sent to the controlling authority. This body operates in Conjunction with the police in the same way as a Licensing Authority in this country. Among its responsibilities are confortnity with licensing conditions, hours of work, vehicle maintenance and proper
documentation. .
Each licensed lorry carries a plate about 2 ft. by 1 ft., which indicates the vehicle's base, its registered number and other details. It also has a bold stripe—red for a longdistance licence, blue for a limitation of I 50 km., and yellow for furniture removals.
Licence applications are heard by a Government authority in the presence of such bodies as chambers of commerce, the railway, trade unions and trade associations. The licences of a complete concern, but not of an individual vehicle, are transferable. Trailers do not have to be licensed.
It seems that German Railways, with their vital position in' the structure of the nation's economy, are being protected by rigid control and drastic taxation of long-distance goods transport by road. With only 50,000 long-distance vehicles operating against them, they have suffered far less from competition than British Railways.
Certainly many German industrialists are far more conscious than their British counterparts of the undesirability of undermining the railways' position. There is also strong public feeling about congestion on the roads.
Germany is within easy reach of the so-called experts at Westminster, and as the Germans are struggling with a problem similar to our own, joint consultations could probably be valuable. We should not take a line of our own and continue to vivisect the transport industry for political purposes.