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RHA members urged to look at rate structure
Page 33
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• Members of the RHA have received this week a letter from the chairman, Mr John Wells, recommending an immediate investigation into their rates structure. The letter urges members to look at the terms of the Counter-inflation (Price and Pay Code) Order 1973.
It stresses that the first important point for hauliers to note is that where a business is incurring a loss prices may be increased to cover costs.
Mr Wells points out that the calculation of other price increases is complicated but generally speaking road haulage charges will be raised only in accordance with increases in certain costs which have occurred since September 30 1972.
The chairman says that although road haulage costs have undoubtedly increased since September 30, the extent of the allowable cost increase will vary between members. In these circumstances a flat rate across-the-board increase by all hauliers is not possible.
Mr Wells advises hauliers to act immediately in negotiating appropriate increases and reiterates his view expressed at the RHA annual dinner last month, "As the demand for transport is now increasing you should not delay in making your approach which I am sure will be successful".