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ECC forces rates cut

8th February 1990
Page 25
Page 25, 8th February 1990 — ECC forces rates cut
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Which of the following most accurately describes the problem?

• ellundreds of tipper operators have had haulage rate cuts forced upon them by industry giant English China Clays.

Operators around the country have received letters from ECC, saying that difficult trading conditions have made a 2.5% reduction in rates "regrettably necessary".

Hauliers have told Commer cial Motor that the St Austellbased firm has hinted at further cuts if economic conditions continue to deteriorate.

A downturn in tipping work over the past year has left many operators unable to increase rates to keep pace with inflation, vehicle taxation and diesel prices. But this is one of the first moves by a major customer to cut its haulage rates. ECC sub-contracts work to hauliers throughout Britain through its operating subsidiaries. ECC International is the firm's industrial minerals specialist; last year more than six million tonnes of white industrial minerals were moved on its behalf. ECC Construction Materials includes the firm's quarrying division, which is the country's fifth largest producer of aggregates; last year it produced more than 17 million tonnes in the South, the South West and the Midlands. The building division is the UK's largest producer of dense concrete products, and Associated Asphalt is a leading road surfacing contractor.

ECC says it does not know how many operators are affected by the cuts, but a spokesman estimated it would be well into the hundreds." However, director Martin Pearce has told CM that the cuts will not necessarily apply to all ECC divisions.