Rates Up 5 per cent
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ON Wednesday the Road Haulage Association recommended members to increase road haulage rates by 5 per cent with effect from June I. This decision of the RHA rates committee took into account the many increases in the cost of operating commercial vehicles which have occurred since the last basic increase of 5 per cent on September 1 last year, in addition to the effeds of Tuesday's Budget, when licence duties were increased 50 per cent.
These increases include the recent 6 per cent road haulage wages award, the confirmation of which is expected shortly. National Health flat-rate contributions payable by the employer were increased on March 29 to 12s. lid. Overhead costs which have increased include administrative salaries and postal charges. Also,, maintenance costs have risen approximately 5 per cent, resulting from the effect of a reduction in the working week from 42 to 40 hours this month. The prices of spares show an overall increase of around 2 per cent. Rates on premises have increased, too. After the basic rates increase of 5 per cent last September the RHA recommended an additional and immediate increase of 24 per cent resulting from the unexpected imposition of an extra 6d. on the fuel tax in the autumn Budget.
An RI-IA spokesman said this week that many members had endeavoured to absorb this substantial rise in a major item of operating costs in the belief that this autumn increase in fuel tax from 2s. 9d. to 3s. 3d. a gallon was a temporary imposition. As this belief had proved unfounded, the RHA gave such members the opportunity to restore their economic position by implementing fully the increase of 5 per cent recommended at Wednesday's meeting. Those members, however, who had already applied the 24 per cent recommended last November would now make the appropriate adjustment.
A spokesman for BRS said on Wednesday that, as they were now contract members of the RHA, the latest 5 per cent recommendations would presumably be applied by them also.