12 p.c. rates increase advised
Page 17
If you've noticed an error in this article please click here to report it so we can fix it.
• All 1900 members of the RHA North Western (Eastern) area are being advised to increase their haulage rates by 12 per cent—the amount by which the area committee estimate operating costs rose in the six months since September 1970.
Although it is recognized that the present economic climate is a difficult one in which to make such a decision, the committee says it cannot avoid emphasizing to road hauliers in their area that increases in productivity are no longer able to absorb extra costs "thrust unavoidably and with such rapidity" on the industry.
Mr W. Farnorth, area secretary, told CM: "So far the haulier has tried to absorb cost increases but it is now obvious that he cannot go on doing so without impairing the efficiency and continuation of his services."
A system of realistic rates. says Mr Farnorth, is therefore the only manner by which a haulier can maintain his standard of service. Willingness to negotiate higher and mutually agreeable rate schedules, he feels, will go a long way towards ensuring the viability of both industry and the haulier in the difficult days ahead.
A schedule sent to members shows increases, expressed as a percentage of total operating costs in the sphere of general haulage since last September, to be: fuel and lubricants, 2 per cent; tyres and tubes, 0.5; repairs and maintenance, 2.5; drivers' wages, 4.0; depreciation, 2.5; and other costs. 0.5—a total of 12 per cent.