S M. M.T. Tells the Government
Page 55
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Leave Makers to Manage Their Own Affairs and Give the Nation an Efficient Road Transport System
ACOMPLETE indictment of the Government's policy of restricting the home market in commercial vehicles, in the fallacious belief that exports would thereby increase, was issued last week by Mr. F. I. Connolly, president of the Society of Motor Manufacturers and Traders.
Speaking at a Press conference in London. he said that if the Government persisted 41 its decisiOn to reduce the home quota by about 27 per cent., compared with that of last year. the effects on the motor industry and its many ancillaries, trade and industry in general, employment, prosperity, public amenities and national security would be serious.
Mr. Connolly contrasted that "arbitrary and illogical reduction" with a cut of 6.6 per cent., which the Government was making in the overall capital investment programme to counterbalance devaluation. This, he said, was evidence of discrimination .against road : transport. although the existing fleet was far below requirements.
68,450 Vehicles Short The S.M.M.T. estimated that about 150.000 new commercial vehicles a year were needed, compared with 81.550 (72,750 goods vehicles and 8,800 public service vehicles) .to, be allocated this. year to. British users. There were, Mr, Connolly aid. more than 425,000 orders on hand for home -delivery, mostly for the lighter type of vehicle.
"The vital importance of maintaining the road transport services of the country at the highest degree of efficiency is ngt generally realized," he declared. Depleted or inefficient fleets increase transport costs, and place a burden upon the community as a whole, a burden which is directly borne by the purchaser, whether at home or abroad. in the form of increased prices both for goods and services.
"Commercial vehicles are essentially a form of industrial equipment. They are the conveyor belt by which personnel, supplies and services are moved to the proper place at the required time. Without an adequate supply of vehicles, the whole process of manufacture and distribution is slowed down. he productive capacity of the country is lowered, and costs and prices are increased."
Mr. Connolly said that road transport costs had been assessed at about 8 per cent, of the national income, and any increase in this already high figure Would fall directly on the consumer, and adversely affect the standard of living of the whole country.
Between 1938 and 1948, America's commercial-vehicle fleet had increased by 80 per cent., but Great Britain's expanded by only 53 per cent. During the same period, registrations of new commercial vehicles in the U.S.A. had advanced by 143 per cent., whereas the increase in Great Britain was only 63 per cent.
"A modern industrial economy cannot be based on an early 10th-century transport system and mentality,Mr. Connolly declared.
Long Past Their Prime
The result of the 'restricted input of new vehicles was that the average age of goods vehicles was now 13iyears. compared with an average of seven years before the war. Public service vehicles, the average age of which before the war was 10 years, were now even older.
At the same time, industrial output had increased by 25 percent., and each vehicle was, therefore, doi,ng more work than before the ,War. •Ninetyper cent, more passenger journeys were .being made on public service vehicles, although the population had. increased by only 5 per cent.
It had also to be remembered. said Mr. Connolly, that nearly 10 per cent. of the goods vehicles on the road were ex-W.D. stock, much of which was uneconomic and would presumably shortly fall out of use.
"The operation of over-age transport fleets," • he continued, "quite apart from losses resultant from breakdowns and delays, has directly and greatly increased the number of skilled manhours needed for maintenance, an unnecessary waste of skilled labour that should be applied to more productive work. The maintenance of an overage fleet reduces the degree of standardization that can be obtained in the motor industry, causing unnecessary wastage in the manufacture and supply of spares and components for out-ofdate vehicles."
Government Supported
Mr. Connolly was strengthened in his case for greater freedom in supplying the home market by pointing out that the commercial vehicle industry had given unqualified support to the Government's export programme. Targets set by the Chancellor of the Exchequer had been exceeded, and in 1949 the motor industry as a whole was responsible fort 10 per cent, of the national total of exports and was the country's biggest exporter. Last month this figure rose to 12.8 per cent. Commercial-vehicle manufacturers had a big share in this achievement.
The proportion of commercial vehicles exported was much higher in this country than in any other of the main producing countries. In the first nine months of 1949, 42.3 per cent, of the United Kingdom's output of commercial vehicles was shipped overseas. In January of this year the percentage rose to 53, and last month it was 51.
France was a bad second with 23.5 per cent., followed by Canada with 13.4 per cent., and the U.S.A. with 11.7 per cent.
Any arbitrary reduction of the home market. unless it could be entirely replaced by an increase in exports, would, said Mt. Connolly, reduce the total volume of production, thereby increasing costs anctexport prices. This was at a time when competition from Continental manufacturers was becoming keener.
"It is not, perhaps, sufficiently appreciated that a sound and continuing export trade can only be built up upon a wide and flexible home market," he added. "The integration of home and export demands, under the constantly changing conditions of the present time, is a`highly technical problem that can only be solved efficiently by those men who are, from day, to day, in the closest possible touch with the conditions in our overseas markets
Fallacious Argument
"To argue that restrictions at home will automatically lead to an expansion of-expoitsr is entirely fallacious. la porn' t of fact.' Mr. Connolly continued, the borne market should act as a buffer, absorbing temporary falls in overseas demands, sustaining sudden export cancellations, and alloWing that degree of flexibility essential to the many specialized problems of export, such as exchange and quota restrictions, shortage of shipping space and dock strikes.
"Economic manufacture is dependent upon a steady volume of production planned to capacity. This, in turn, is dependent upon the availability of an adequate and reliable home market."
• Mr. Connolly stressed the labour problems that would be caused by any major variation in output. The repercussions would, he said, be felt in a wide range of trades and industries.
Emphasizing the contribution that road transport made to national security, Mr. Connolly said: "In the event of war, the re-deployment of industry, and in particular the degree of defensive dispersal required, can only be met by the flexibility afforded by road transport. The proposed cuts will lead to a contraction of the industry's potential, which will. render it less able to meet these requirements, should the necessity arise."
This statement should have been issued on January 11, but was hastily withdrawn because the Government that day announced its plans for a General Election. The S.M.M.T. feared that it might be accused of dabbling in politics if the statement were made at that time. As there has been no change in Government policy, the S.M,M.T. considers that the indictment is fully applicable to present conditions.