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The Price of Courage

9th January 1953, Page 107
9th January 1953
Page 107
Page 107, 9th January 1953 — The Price of Courage
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Which of the following most accurately describes the problem?

ALTHOUGH the process Balancing Charges Levied on of denationalizing longHauliers Who Resisted Nationdistance road haulage is likely to begin within a few alization Others Escape months, payment, for the undertakings acquired under the Transport Act, 1947, has not yet been completed. In some instances, the amounts to be paid are in dispute and, in others, settlements await ratification. Meanwhile, a number of hauliers who have already been paid for their businesses have found that their compensation is unsatisfactory.

In cases where the sums given by the British Transport Commission for vehicles exceeded their written-down value for tax purposes, balancing charges have been incurred. The Road Haulage Association, last year, took the matter to appeal before the Special Commissioners, but failed to obtain a favourable decision. Now, the operators concerned are being called upon to refund to the taxation authorities the " profits " on the tax allowances made in the enforced sale of their vehicles to the B.T.C.

Payment Now Inevitable These payments were held in abeyance while the appeal was pending, but under the Income Tax Act, 1952, they can no longer be delayed. The total amount involved is believed to be extremely large. and it thoroughly justified the expensive appeal proceedings. It is understood that a further appeal to the High Court from the decision of the Special Commissioners is not out of the question. and if the Court ruled in favour of the appellant, the taxation authorities would have to repay the balancing charges. Meanwhile, confusion and hardship have been caused—a' particularly undesirable situation at a time when the Government is asking former hauliers to come back into the industry.

The Act under which the balancing charges were incurred was passed before practical steps towards the nationalization of any industry had been undertaken. Those who supported the measure could hardly have foreseen the inequity which• would be created when businesses were annexed by the State. In practice, balancing charges have borne heavily upon some hauliers, whilst others have escaped them.

It is believed that those who sold their businesses voluntarily to form the nucleus of the organization of the Road Haulage Executive did so on the basis of share values. The vendors demanded a certain price for their shares and the businesses were sold as entities. Thus they escaped balancing charges. Compulsory acquisitions took a rather different form. Payment was made for what was, in effect, goodwill, calculatedon _average profits, and for assets at market valuation, on which balancing charges have, in many instances, been levied. Those who refused to capitulate without a fight are, therefore, now being called upon to pay the price of their courage.

The Gift-horse Kicks Under the 1947 Act, provision was made for extra payment for vehicles which were in appreciably better condition than others of comparable age and type. Rightly, the operator who had taken care of his equipment reaped the benefit. Everyone agreed that this was fair. Careful operators are, however, now being penalized for their good husbandry by having to refund to the taxation authorities at least part of the fruits of their wisdom. That is one of the R.H.A.'s complaints.

So far, the Association has not succeeded in securing amendments to the Finance Acts to ensure equitable treatment of operators whose businesses were compulsorily acquired. It is believed, however, that the Association has not lost heart and that the matter is to be pursued. It should be encouraged in every possible way in its endeavours to right this injustice.

Conflicting actions by Government departments, by which an advantage conferred by one is negatived by another, are by no means unknown. The levying of balancing charges in the circumstances in question is a flagrant example. A Government that prides itself on its practical approach to national problems should give urgent attention to this injustice.


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