MR. BROWN APPROVES 4 PER CENT ON BRS PARCELS
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FROM A SPECIAL CORRESPONDENT
ispilLE the Road Haulage Association and their heart-searching took most of the VI' limelight following the report of the National Board for Prices and (monies last week, British Road Services played out a little drama of their own. Quietly, just as the RHA executive were holding their meeting in London, BRS Parcels Ltd. let it be known that they would be putting up their tariffs next day. Not only that, but the charges were going up by between 2 and 20 per cent.
The eventual result was a statement costs as well as improvements in on Wednesday by Mr. George Brown, efficiency and other considerations set Minister for Economic Affairs, that a out in the White Paper on Prices and 4 per cent increase in revenue has been Incomes Policy. Moreover, added Mr.
approved. The Transport Holding CornBrown. it Att..; inevitable that a propor pany seemed to have succeeded quietly tionately higher increase should be where the RHA had enjoyed less success applied to the charges for small parcels in more spectacular fashion last week. --which were relatively dearer to handle This was Mr. BrOwn's statement:— --.--than to larger consignments. A FTER discussions with the GovernThe THE. nevertheless recognized the
ment, British Road Services Parcels importance both of working in accord
Ltd. have agreed to reduce their proposed ance with the prices and incomes policy
tariff increases for parcels and small conand of paying full regard to the con signments by about one-third. siderations set out in the recent report of
.The new charges will come into force the National Board for Prices and
towards the end of this month—and in incomes.
view of this move Mr. George Brown, They had undertaken after discussion Minister for Economic Affairs, has to arrange that FIRS Parcels should pre
decided not to refer the matter to the pare for introduction towards the end Prices and Incomes Board, of the month a revised tariff reducing the He announced this in Parliament on increase in charges originally proposed Wednesday after Mr. Geoffrey Rhodes by about one-third. This, said Mr.
(Labour, Newcastle East) had asked Brown. would have the effect of increas whether he would refer the proposed ing revenue by about 4 per cent instead increases to the Board. of about 6 per cent.
In his reply Mr. Brown noted that at In these circumstances, he was not
his request the Transport Holding Corm proposing to refer the case to the
pany, .Which owned the parcels. service, National Hoard for Prices and Incomes,
had agreed to ask. BRS to postpone the Last week could hardly have been a introduction of their new tariff for more tactless time for the State-owned parcels and small consignments in order firm to announce a decision so directly in
that the matter might be considered. conflict with Government policyand of
He -had now had an opportunity, with the Prices Board's report. BRS tried to the Minister of Transport, to discuss the defend their action by pointing out that matter with the Holding Company, went the report dealt not with parcels but on Mr. Brown. The current scale of with road haulage rates, which were the charges was introduced in May, 1964. concern of the road haulage company
and there had been no increase since then which had already announced that it
--a period of 14 months during which would hold individual discussions.
road haulage charges generally had risen Furthermore, Mr. P. W. Swindells, more than once. managing director of the parcels corn Mr. Fraser and he were satisfied that parry, pointed out that the charges had some increase in charges was now justibeen due to come into force early in fied, taking into account increases in June and had been postponed for four -weeks at the request of the Government. There had been 14 months without an increase in rates and they were no longer able to absorb the higher costs.
As to the high percentage increase, it was pointed out that the highest rates were confined to small parcels of 3 Pb, which took just as much handling as bigger parcels but were hardly remunerative. Since Post Office charges went up, this type of traffic had increased and the idea of the higher charges was to discourage this,
At first ?vIr. Brown seemed not to be aware of the implications of the FIRS announcement. But later that evening he phoned leaders of the Transport Holding Company and demanded an explanation. Dissatisfied with the answer, he got them to put off the start of the new tariffs for a week so that further talks could he held to see whether the increases were really justified.