(c) crown copyright Catalogue Reference:CAB/24/232 Image Reference:0004 C A B I N E T. SECRET. CP. 286 (52) TRANSPORT POLICY. MEMORANDUM BY THE MINISTER OF TRANSPORT. -In C P . 5 2 ( 3 2 ) I drew the attention of the Cabinet to certain questions raised by the railway companies in representations which they had recently made to me. It may be convenient if I now indicate the general directions in which we are likely to he called upon to frame and apply a definite transport policy. RECENT DEVELOPMENTS. During the last few years several important legislative and other steps have been taken in the field of transport which may be summarised as follows:­ (l) Highway administration was largely reformed under the provisions of the Local Government Act, 1929c The changes were brought smoothly into operation. (2) A progressive and continuous policy of road and bridge improvement and construction has been pursued. The drastic retrenchment recently necessitated by the financial crisis, has involved the cancellation or postponement of works to the amount of about £ 3 5 millions and haw brought the progress of improvements for the time being to a standstill. But in spite of this, facilities for transport by road have been greatly improved and increased. One result of the strengthening and widening of the main routes has been to encourage heavy end fast moving commercial traffic, both goods and passenger, over long distances, thus no doubt to some extent aggravating and accelerating the diversion of valuable traffic from the railways. (3) On the other hand, the inclusion of the railway companies in the derating scheme of I929 was Intended to encourage the movement of the heavy coal and iron and steel traffics and also of agricultural traffics "by rail. It will he remembered that the railway companies are not permitted to retain any part of the "benefit of derating for themselves. They are required under rigid statutory provisions to pass on the whole henefit to specified classes of railway users. The amount of the rebates allowed to traders has "been increased as a result of the smaller volume of traffic, hut the assistance which the scheme might have afforded to the railways by s timulating their traffics has been diminished by the industrial depression. The future operation of the scheme is somewhat uncertain as the assessment of the railways on the new basis of valuation has still to be determined. The railways and their users were assisted by the repeal of railway passenger duty in I 9 2 9 , the capital equivalent of the duty being applied to the provision of new facilities and improvements involving an expenditure equivalent to the capitalised value of the duty. (if) Partly with a view to redressing the balance between rail and road and partly to meet the increasing costs of the highways, taxation on the heavier commercial vehicles was to some extent increased by the Bnadget of 1 9 2 6 , and a new duty on petrol was imposed in 1 9 2 8 . At the same time, a rebate of 3 0 per cent, of the vehicle tax was accorded to the heavier classes of vehicle if fitted with pneumatic tyres, a concession which has been of substantial advantage to the owners of such vehicles. (5) Powers to operate services by road and subsequently by air were granted to the railway companies. The power to operate services by road has been of great importance and the railway companies have taken full advantage of it on the passenger side to secure substantial interests in a large number of omnibus end coach companies. (6*) The Road Traffic Act, 19/?0, in addition to "bringing the law relating to motor vehicles generally up to date, established a comprehensive scheme of regulation of public service passenger vehicles. It also introduced certain new and amended requirements (i e. as to construction and use of e vehicles, the age of drivers and the regulation of drivers' hours of labour in respect of goods vehicles), but stopped short of any effective scheme of regulation of goods traffic by road. (7) The scheme embodied in the London Passenger Transport Bill, including the agreement for a pooling scheme between the proposed Board and four amalgamated railway companies, is designed to settle comprehensively the problem of co-ordination of passenger transport over the wide area embraced within a circle with a radius of approximately 2 5 miles from Charing Cross, FURTHER PROBLEMS. Looking to the future, the ground to be consolidated or marked out for further advance lies in the following main directions: ­ 1. Road Traffic Act, 19^0. Most of the features of the new legislation (including, for example, the introduction of a scheme of compulsory third party insurance.) have given rise to far less trouble in operation than, might have been apprehended. The close contact which my Department maintains with the various road transport road other ant erests concerned, and its practice of consulting with them in regard to the making of regulations, conduce to smooth working. Part IV of the Act, which relates to licensing of public service passenger vehicles, has inevitably given rise to some criticisms, but they are diminishing as the Act comes to be better understood and initial difficulties clepr a w a y . The value of its protective as well as its restrictive provisions is being increasingly realised b y road o p e r a t o r s , . - If - The transfer to 13 bodies of Commissioners of the functions hitherto performed (often most inadequately) by about 1 , 3 0 0 separate local licensing authorities has been effected without undue difficulty, if regard be had to the magnitude of the change. It is, of course, true that certain of the municipal and other bodies, who were themselves interested in trams and other forms of municipal transport, do not altogether like the loss of the power to license their competitors, which under the old system was open to abuse* Apart from the inevitable refusals to license services which were not being satisfactorily or regularly conducted; the Commissioners were required, in giving effect to the directions of Parliament, to have regard "to the extent to which the proposed services were necessary or desirehie in the public interest and "to the needs of the area as a whole in relation to traffic end the co-ordination of all forms of passenger transport including transport by rail". Some of their decisions were bound to involve refusals of licences to unnecessary or unreasonably competitive services, and it is a matter of common knowledge that during the progress of the Bill 3 and in the months immediately after its passage before the new system of licensing could be established, a great many new services were started in the hope of staking out claims for the future. The new Government assumed office at the moment when the decisions of the Commissioners were becoming operative and being made the subject of appeal. It is easy to conduct an agitation in favour of some particular applicant without full knowledge of the circumstances and without reference to the general position and the results of sporadic or uneconomic competition upon regular services, and it is inevitable that in dealing with an enormous number of applications the Commissioners must make some mistakes. It is, therefore, not surprising that I have had to deal with some troublesome- appeals and to answer a good many Parliamentary Questions on the subject. I took steps, however, at the end of last year to issue a general direction to the Traffic Commissioners reminding them of the importance of giving full consideration to the case of the small man and the legitimate demands of the public. Complaints against the operation of the Act are now less frequent. Substantial progress has been made towards a better co-ordination of passenger transport and the responsible organisations of the motoring industry realise the value of the Act in bringing stability and proper conditions of employment into the industry. The smaller men are also beginning to appreciate the protection they derive from the orderly system of licensing which has replaced the competitive chaos prevailing on many routes. In London, special problems arise. The congestion of the streets by motor coaches has been a source of anxiety to the Commissioner of Police for the Metropolis and for the City of London. A Committee of Inquiry, presided over by Lord Amulree, has confirmed the necessity of restricting the use of streets in the central area and has also advised me upon a number of individual appeals from the Traffic Commissioners 1 decisions. I have accepted their advice and, pending the creation of a Passenger Transport Board, no more satisfactory means of handling a difficult position will be open to me. 2. The early passage of the London Passenger Transport Bill is indeed the only satisfactory means of co-ordinating passenger transport in the special and complicated area of Greater London. I need not recapitulate the arguments in favour of this step or the reasons which have led me to the conclusion- that the scheme is the only practicable technical solution of the problem, since they have been laid before the Cabinet on other occasion 5. The investment.of the main line railways in omnibus and coach undertakings under the powers which they senured five years ago, careful administration of Part IV of the Road Traffic Act, 3-95 * d the establishment of the London 0 e n Passenger Transport Board xould carry co-ordination of passenger transport as far as need he contemplated at present. Under the head of careful administration of the Road Traffic Act, I include a proper enforcement of the legal speed limits - a matter to which the Home Secretary is giving special attentions I also include the proper observance of legal requirements as to hours of employment of drivers and conductors and of the Psir Wages Clause, where enforcement is more difficult,, It will be necessary to require all drivers of licensed passenger vehicles to carry way-bills or journey records of an appropriate kind which will show the times of their journeys and duties and will be available for production to authorised persons. Such records are recommended by the Road-Rail Conference in respect of goods vehicles and, if existing powers are found to be inadequate to cover passenger services, I should propose to seek further powers in relation to this class of traffic in any further legislation. Co-ordination of goods transport 0 On assuming office, it was represented to me that at present the legal speed limits for heavy goods vehicles and the legal limitations upon the loads which they may carry were being widely ignored,, Heavy vehicles proceeding at high speeds doubtless cause much general inconvenience through noise and vibration, epart from the question of roed damage or public safety. The Traffic Commissioners have no jurisdiction over goods vehicles and enforcement of the law must rest entirely with the police, including the mobile police, and with the highway authorities, I contemplate some simplification of the existing schedule of speeds, hut no general relaxation. Simplification should make enforcement easier, hut amending regulations will require an affirmative resolution of both Houses of Parliament. - As regards overloading, the railway companies complainec and still complain that this is frequent, gross and notorious There is undoubtedly much ground for t h i s c o m p l a i n t a n d i n conjunction with the Home Office I b a v e been considering vrhat action can be taken for t h e better enforcement of the law 3 There remained more fundamental issues, namely:­ (a) whether the incidence of the total burden of m o t o r (b) whether some system of l i c e n s i n g g o o d s t a x a t i o n a n d of h i g h w a y c o s t s is f a i r l y d i s t r i b u t e d between t h e u s e r s o f t h e r o a d s a n d other i n t e r e s t s , b e t w e e n t h e d i f f e r e n t c l a s s e s of road u s e r s i n t e r s e a n d b e t w e e n t h e h e a v i e r and lighter v e h i o i e s " " i n e a c h c l a s s . vehicles should be established s o t h a t t h e y may b e b r o u g h t u n d e r the same k i n d o f r e q u i r e m e n t a s t o q u o t a t i o n of rates, the a v o i d a n c e o f u n d u e p r e f e r e n c e , e t o * 5 as the railway companies,. Equitable taxation of commercial road transport in relation to the use which it makes of and t h e v a l u e it d e r i v e s from the highway system a p p e a r e d t o me to lie at the r o o t o f the reil-*road problem, and a j u s t a n d speedy settlement o f this question to be on all grounds desirable. In the hope that I should be a b l e to narrow down the area of controversy, I d e c i d e d , a s the Cabinet is a w a r e 3 * to set up as a preliminary step a small Conference c o n s i s t i n g of the General Managers of the four railway companies a n d -four representatives of the goods side of motor t r a n s p o r t (under the i n d e p e n d e n t chairmanship of Sir Arthur Salter, whom I selected after consulting the Prime Minister) to e x p l o r e these questions. It will be within the recollection of seme of my colleagv.es that demands were made by s e v e r a l o t h e r i n t e r e s t s t o be included in the Conference. In the House of Lords L o r d Lcvat p r e s s e d a claim for representation of the highway authorities,. The vaz ious orgsnisations of traders (including t h e F e d e r a t i o n cf B r i t i s h Industries, the Chambers of Commerce, the N a t i o n a l Federation of Iron and Steel Manufacturers and the M i n i n g Association) and ether competitive forms of transport, such as the canals and coastwise shipping, had all raised t h e p o i n t of special representation, but I was b o u n d to a n s w e r t h e & a l l l y pointing out that, if I included one, I should s o enlarge the Conference as to turn it into a kind of Transport Parliament from whose deliberations no practical r e s u l t s were likely to follow. This answer w a 3 a c c e p t e d , by all the i n t e r e s concerned, especially in v i e w o f my assurance that before a n y decision was taken all interests would be given the f u l l e s t opportunity of expressing their views upon any proposals or findings vhich the R o a d - R a i l Conference m i g h t reach,, I met th point of the highway authorities to their satisfaction, w i t h o u t reopening the question of direct representation on the C o m m i t t e by inserting a preamble in the reference in order to d e f i n e ita scope and.object. Regarding the whole matter as urgent, I instructed the Conference to report by the end o f J u l y , so that t h e r e shcu be ample time for any further consultations that may be necessa and for full consideration by the Cabinet o f all the i s s u e s arising well in a d v a n c e o f the next session of Parliament,, The Conference has conformed to this time-table and presented a moot valuable and unanimous report, which I have published and which I have sent t o all the representative associations of l o c a l authorities ? traders, motor users and trade unions concerned, with a request that any observations they may w i s h to make shall reach me not later than the JOth S e p t e m b e r o I annex a s u m m a r y cf the R e p o r t ( A p p e n d i x l ) c I propose to discuss at scheme of r e v i s e d once with the Treasury t a x a t i o n of heavy goods v e h i c l e s unanimously hy t h e Conference principle t h i s recommendation w i l l Chancellor to and assume t h a t corumend i t s e l f to in the of t h e E x c h e q u e r and t o t h e Government a s a w h o l e . As r e g a r d s t h e s c h e m e o f l i c e n s i n g of goods v/hich i s recommended b y t h e C o n f e r e n c e Appendix I I , I s h o u l d be g l a d of i n framing which I should, criticisms recommended as j u s t and necessary e s t a b l i s h a f a i r b a s i s of c o m p e t i t i o n , the and i s s e t authority I think that give c o n s i d e r a t i o n to out of c o u r s e , h a v e r e g a r d to I if a Bill any have t h e Cabinet might f i n d the proposals in to prepare o r s u g g e s t i o n s made b y t h e i n t e r e s t s consulted. vehicles. it easier t h e y saw them i n the c o n c r e t e f o r m of v. a B i l l which could be examined i n d e t a i l t h e Home A f f a i r s Committee. 5* F u r t h e r p o o l i n g of companies. I have already arrangements covering a l l r e c e i p t s between consented to the t r a f f i c London, Midland and S c o t t i s h Railway Companies, Cabinet application for an i m p o r t a n t and t h e London and N o r t h I expect to explained to receive a and t h e G r e a t W e s t e r n R a i l w a y I s h a l l b e b o u n d t o o r d e r an i n q u i r y i n t o as in the p r e v i o u s c a s e , but found acceptable realised, since, any such the Eastern the London, Companiesapplication I hope t h a t t h e p r o p o s a l s w i l l a s t h e Royal Commission on a r r a n g e m e n t s of t h i s k i n d a r e i n e v i t a b l e t h e i r diminished resources for giving be Transport if r a i l w a y c o m p a n i e s a r e t o s e c u r e maximum e c o n o m i e s a n d t h e w a s t e of pooling similar a pooling arrangement between the Midland and S c o t t i s h by railway competitive between in the circumstances i n C P . 264(32). the to the avoid public service,, 64 Highway E x p e n d i t u r e . It is a question whether p o l i c y r e c e n t l y p u r s u e d i n making g r a n t s has had sufficient the from t h e Road Fund r e g a r d to t h e c o - o r d i n a t i o n of r a i l w a y and 294 I road transport and has not in its practical result (though not in intention) gone too far to facilitate and accelerate the transference of heavy long-distance traffic from the railways to the roads. For many years past the highway policy of the Ministry of Transport has unfortunately been deflected by the spectre of unemployment, which has led Government after Government to press for the initiation of such road works as can most readily be put in hand, employ the maximum volume of labour and anticipate, perhaps substantially, traffic needs. V/hile it cannot fairly be said that the Road Fund has been applied to schemes not possessing real traffic justification, immediate or prospective, or that there has been a policy of subsidising mere relief works out of the Fund, there can be little doubt that the trunk road and similar programmes since 1 9 2 4 have been a direct encouragment to long-distance road transport. I propose to review the vairious purposes to which we make grants, and possibly to give them a somewnat different order of priority in relation to a general economic policy. Y/e have created recently a very large volume of capital assets in the form of drastically remodelled and improved main roads. It may be that we shall have to devote a larger portion of our resources to the maintenace of our existing roads and their gradual , reconditioning, with a view to keeping the whole network of our minor roads in the most efficient state for the purpose of local distribution by motor transport conducted in mechanical units of reasonable weight and dimensions. It may be wise to call a halt to the provision of routes largely parallel to the railway lines and adapted to taking the very heaviest types of road vehicle. I propose to consult the highway authorities especially on this aspect of the matter. In this memorandum I have not thought" it ne-cessary " to refer to means of transport other than road and rail. That is not to sas^ that there is nothing to consider except in regard to rail and road traffic. the question of the Canals. There is, for example, But it can hardly he said that either coastwise shipping, or harbours and docks or even the canals, present any equally pressing problems from the point of view of co-ordination. (The position of the tramways - Whether municipal or company - as regards competition is reasonably safeguarded by the Road Traffic Act, 1 9 5 0 ) . 1 Summary To sum up, the possible lines of policy for the further co-ordination of rail and road traffic appear to be as follows:­ passenger Transport. 1. Legislation giving effect to the proposals of the London Passenger Transport Bill. 2. Adherence to the policy of co-ordinating passenger road transport laid down in Part IV of the Road Traffic Act, 19^0* coupled with the efficient enforcement of the provisions of that Act in regard to speed limits and conditions of employment. Goods Transport. 3. 4. Enforcement of the provisions of the Road Traffic Act, I 9 3 O , in respect of the speeds and loading of goods vehicles, and of conditions of employment in connection therewith. ' ' - ' ' y * I ' The institution of a system of licensing goods vehicles in accordance with the unanimous recommendation of the Road-Rail Conference. General. 5. A revision of the incidence of taxation with a view to an adjustment which would more closely relate the share borne by heavy commercial vehicles to the use which they make of the roads. 6. Conservation of highway expenditure by restricting the use of the unclassified roads to mechanical units of suitable size and weight. We cannot afford to follow the principle of making every roac suitable for every vehicle. 7. 3 0 s o o n a s t h e R o a d F u n d i s i n a p o s i t i o n t o make g r a n t s f o r f u r t h e r improvements and development o f t h e highwajr s y s t e m , a d e t e r m i n a t i o n of t h e p r i o r i t j r t o h e a c c o r d e d t o v a r i o u s t y p e s of scheme, w i t h due r e g a r d t o t h e p r o p e r f u n c t i o n s of t h e r a i l w a y s and the r o a d s . 8. The i n s t i t u t i o n of p o o l i n g s c h e m e s "between t h e f o u r amalgamated r a i l w a y companies, t o g e t h e r w i t h the e x p l o r a t i o n o f f u r t h e r o p p o r t u n i t i e s f o r economy i n c l u d i n g t h e i n t r o d u c t i o n of h i g h c a p a c i t y m i n e r a l wagons. In. c o n c l u s i o n , emphasise a whole. V/e s h o u l d , say t h a t attaches p o l i c y and i t s t h e Government of c o n s i s t e n t i s viewing in translation into 1952. practice. P.J.P. its if by we current transport policy i m p o r t a n c e t o t h a t b r a n c h of (Intd) 22nd A u g u s t , assisted a c t i o n o f some k i n d i s r e q u i r e d , problems in the l i g h t it I am s u r e , b e g r e a t l y p r o g r e s s i n t h e many d i r e c t i o n s w h e r e , admission, were a b l e t o that to t h e i m p o r t a n c e of v i e w i n g our t r a n s p o r t p r o b l e m making e f f e c t i v e general I may p e r h a p s h e a l l o w e d and economic as APPENDIX I SUMMARY OP REPORT OP CONFERENCE ON RAIL AND ROAD TRANSPORT. The Report of the Conference on Rail and Road Transport, which received its Terms of Reference from the Minister of Transport on 1 1 t h April, 1 9 3 2 , was signed on 2 9 t h July and published on 1 7 t h August. The Members of the Conference (with the exception of Sir Arthur Salter, K.C.B., the independent Chairman appointed by the MiniBter) represented in equal proportions the interests immediately concerned in the operation of goods transport by rail and by road. The Report makes recommendations which are in all cases unanimous. The questions covered are:­ (a) the incidence of highway costs; (b) licensing and control; (c) certain other matters affecting "division of function betv/een road and rail. PART I; INTRODUCTORY. The first part (Paragraphs ) gives a general description of the recent evolution of motor transport; transformation of the road system; the and the problem of road and rail competition. The Conference considers that the relative contributions of the different classes of motor vehicles need correction and that for certain classes of commercial g:cc.e vehicles n e e d to b e ) f)flO 6 "JO increased. Extravagant entertained this as to the e x p e c t a t i o n s must n o t , effect of he such increased t a x a t i o n , or combined w i t h a d d i t i o n a l r e g u l a t i o n s traffic to the railways. The p r e s e n t the fact that (Paragraph In o t h e r words, essential in the last century, would h e u n d e s i r a b l e r o a d s and d e p r i v e t r a d e transport. due t o t h e g e n e r a l c a u s e s of l o s s , trade offer to the public; losses to d i v e r t these Against (Paragraph the their 28). can o n l y o f f e r an dealing costs t h e p u b l i c and other forms of r o a d t r a f f i c by 29)* INCIDENCE OF HIGHWAY COSTS. The C o n f e r e n c e is in full agreement as to the p r i n c i p l e s which should govern the d e t e r m i n a t i o n of the upon commercial motor t r a n s p o r t . should pay i t s f a i r commercial charges a s k no more t h a n t h a t s h a r e of t h e y u s e a s t h e i r permanent way. main ( P a r a g r a p h j54.). The r a i l w a y r e p r e s e n t a t i v e s not ask that part major i n t h e i n c i d e n c e of highway u s e r s of t h e r o a d a g a i n s t u n d e s i r a b l e transport the themselves c a u s e s of l o s s by and i n a d e q u a c y of t h e r e g u l a t i o n s t o p r o t e c t th^ increasing they can recommendations t h e Conference PART I I : in two and f o r t h e r e s t must d e a l w i t h (Paragraph and and t h e o t h e r t e m p o r a r y , s h a r e of a g e n e r a l l y with any e x i s t i n g u n f a i r n e s s is the convenience of depression. a l l e v i a t i o n of one o f t h e s e p r i n c i p a l to t r a f f i c hack from is alsp a n d t o t h e new f a c i l i t i e s goods v e h i c l e s . due railways, The r a i l w a y s p o s i t i o n in the a p p r o p r i a t e manner. In i t s in part t h e motor v e h i c l e and i n d u s t r y of t h e r a i l w a y s must l o o k t o t h e i r of t r a d e traffic is a r e no l o n g e r i n d i s p e n s a b l e t h e one p e r m a n e n t total 2j). c e r t a i n s e r v i c e s of t h e to attempt of hack and e s s e n t i a l l y more economical t h a n railways. new f o r m o f in forcing s i t u a t i o n of t h e r a i l w a y s f o r many c l a s s e s o f both more c o n v e n i e n t it however, the cost of the roads The r o a d r e p r e s e n t a t i v e s road t r a n s p o r t should pay l e s s this than do its fair s h a r e of t h e c o s t o f t h e r o a d s o r s h o u l d b y so d o i n g any o t h e r d e v e l o p m e n t public interest. than that (Paragraphs which i s economic and i n the 35-36). The C o n f e r e n c e h a d t o r e c o m m e n d , total attain therefore, a n n u a l sum w h i c h i s p r o p e r l y t o b e a l l o t t e d what i s to m e c h a n i c a l l y - p r o p e l l e d v e h i c l e s a s a whole a n d t h e n what i s just incidence a s between the d i f f e r e n t At p r e s e n t classes road u s e r s enjoy the very " l e g a c y of t h e p a s t " work of transformation make a l l o w a n c e for during t h i s that is, of t h e roads. After of existing e x p e n d i t u r e on But i t "community l o n g d i s c u s s i o n t h e s e two f a c t o r s , and r e q u i r e d on o p p o s i t e therefore, that each but include future t h e s e t w o i t e m s of use" the magnitude. on t h e u n d e r s t a n d i n g t h a t annual e x p e n d i t u r e whether out of revenue o r t o e x c l u d e any i t e m i n r e s p e c t by incapable s i d e s of i n o r d e r of to and road expenditure should be calculated as described l a t e r to the is necessary except through r a t e s seemed to a p p r o x i m a t e c l o s e l y I t was a g r e e d , 37). substantial f o r w h a t i s commonly t e r m e d t h e exact calculation account? era. the t h e o t h e r u s e s t o which t h e r o a d s a r e put t h o s e who make n o p a y m e n t t h e r e f o r taxes; (Paragraph i n r e s p e c t of b o t h t h e r o a d s y s t e m b e f o r e t h e motor e r a and of t h e heavy c a p i t a l the (so loans of t h e s e r v i c e of p a s t "community u s e " on t h e o n e h a n d a n d of t h e p a s t " on t h e o t h e r might f a i r l y b e r e g a r d e d a s as loana) "legacy cancelling; j each o t h e r . (Paragraphs After years, c o n s i d e r a t i o n of t h e a c c o u n t s of t h e l a s t the fairest b a s i s of 38-50). figure to represent five annual expenditure as a a scheme of a l l o c a t i o n seems t o t h e C o n f e r e n c e t o b e net figure of £60 m i l l i o n s t o a l l o c a t e of m e c h a n i c a l l y - p r o p e l l e d Seeking c r i t e r i a vehicles. (Paragraphs of a l l o c a t i o n of i n any sense t h e a c t u a l methods of determined, among d i f f e r e n t 51-5^). total costs collecting the sums t h e Conference h a s examined a l t e r n a t i v e proposed for the purpose. (Paragraphs 55-56). classes and n o t so systems a I t was s u g g e s t e d , cent, of t h e total for example, contribution that some 8 0 required should be b y m e a n s o f a s h i l l i n g d u t y a g a l l o n on p e t r o l , being allowed for in reduced licence duties a g g r e g a t e t o p r o d u c e t h e r e m a i n i n g 20 p e r There would be g r e a t came t o it of 20 p e r c e n t , s o l l e c t i o n i n t h e form of a general felt The in the f i n a l of t h e d i f f e r e n t At t h e of v e h i c l e s , determines the appropriate by a s c e r t a i n i n g on a weight conclusions, distribution class of t h e is, "ton-mileage" which t o b e made b y e a c h class of £ 6 0 m i l l i o n of v e h i c l e s . distance run, 65). the mileage o f £6C m i l l i o n agreed without the average These reserve laden agreed vehicles t o work out what would be on a s t r i c t (Paragraph of 63). in each c l a s s . havecenablcd i t was employed a criterion reached conclusions, consumed, ­ consumption c o m b i n e d w i t h t h e e x a c t l y known n u m b e r o f in each c l a s s , for and has been the t o t a l (Paragraph as to the average and p e t r o l this the t h i s by t h e e s t i m a t e d and d i s t r i b u t i n g according to these r e s u l t s . i n any c a s e , measure 62). that contribution multiplying The C o n f e r e n c e of and s y s t e m of a v e r a g e s t h o l a d e n t o n n a g e vehicles in the c l a s s , they cover in a y e a r , of v e h i c l e s , same t i m e p e t r o l c o n s i d e r e d was t h a t classes a defective of t h e t o t a l c o n t r i b u t i o n ( P a r a g r a p h s 59 - A second b a s i s measure vehicles c o r r e c t e d by element in a c r i t e r i o n proposal. Conference, graded licence duties representing road franchise. to be a useful is classes t o an e x t e n t which would n o t b e a d e q u a t e l y reservation the petrol while an e x c e l l e n t t h e same g e n e r a l w e i g h t a n d d e s c r i p t i o n , and wear b y d i f f e r e n t on cent. f o r v a r y i n g u s e and wear of t h e r o a d s by d i f f e r e n t of v a r y i n g u s e factors calculated advantages in taking the conclusion t h a t , obtained other consumption as the main c r i t e r i o n of i n c i d e n c e . however, per ton-mile basis for the eaoh Off 1 X - 5 The C o n f e r e n c e - consider, however, that a ton-mile c r i t e r i o n w o u l d g i v e r e s u l t s w h i c h w o u l d n e e d some a t b o t h ends of t h e s c a l e allocation based equally and concluded t h a t on t o n - m i l e a g e would be t h e most a d e q u a t e g e n e r a l T h e mean o f t h e r e s u l t s consumption" c r i t e r i o n c r i t e r i o n was t h e r e f o r e made f o r and t h a t than for heavier vehicles, of t h i s "ton-mileage" of t h i s combination combined goods the the some f u r t h e r a somewhat g r e a t e r correction allowance should of t h e r o a d s t e x t r a wear and t e a r (Paragraphs 73 - agreement, that the b u t by no the other 74). the final t h e £60 m i l l i o n t h e f o l l o w i n g p r o p o r t i o n s among c o n c l u s i o n was reached, should be a l l o c a t e d in mechanically-propelled vehicles:­ (a) £23^ m i l l i o n t o commercial goods (b) £36^ m i l l i o n t o a l l other propelled vehicles. vehicles: mechanically­ (Paragraph 75). T h i s sum - a b o u t £2-g- m i l l i o n m o r e t h a n t h e y i e l d of l i c e n c e vehicles - and p e t r o l d u t i e s from commercial involves considerable t o b e made b y c e r t a i n c l a s s e s . class is to bear i t s (Paragraph 77). fair be one caused by a r e t o b e f o u n d among t h e g o o d s v e h i c l e s a t In the circumstances, in full 69 "petrol of w h i c h a c o n s i d e r a b l e p r o p o r t i o n , end of t h e s c a l e . 68 - mechanically-propelled speed and u n l i m i t e d f r a n c h i s e end of t h e s o a l e means a l l , other came t o t h e c o n c l u s i o n t h a t the (Paragraphs 72). On c l o s e e x a m i n a t i o n seemed r e q u i r e d , consumption £23,847,544 t o commercial ( P a r a g r a p h s 70 - Conference formula. The e f f e c t and £36,152,446 t o a l l vehicleso and p e t r o l and t h o s e g i v e n by t h e c r i t e r i o n would be t o a l l o t vehicles, a s y s t e m of g i v e n by t h e taken. correction increasesin This i s s h a r e of r o a d the present goods contributions inevitable expenditure. is each The C o n f e r e n c e consider, however, that a ton-mile c r i t e r i o n v / o u l d g i v e r e s u l t s w h i c h w o u l d n e e d some a t "both e n d s o f t h e s c a l e a n d c o n c l u d e d t h a t allocation based equally on t o n - m i l e a g e a s y s t e m of and p e t r o l would b e t h e most a d e q u a t e g e n e r a l f o r m u l a . T h e mean o f t h e r e s u l t s consumption" c r i t e r i o n v/ould b e t o a l l o t vehicles, The e f f e c t (Paragraphs 70 - the e n d of t h e and t h a t than for heavier vehicles, combined the some f u r t h e r correction a somewhat g r e a t e r a l l o w a n c e t h e e x t r a wear and t e a r end of t h e scale. agreement, that the the final among other 74). c o n c l u s i o n was reached,, t h e £60 m i l l i o n should be a l l o c a t e d the following proportions the but by no a r e t o b e f o u n d among t h e g o o d s v e h i c l e s a t In the circumstances, in mechanically-propelled vehicles:­ (a) £23-g- m i l l i o n t o c o m m e r c i a l g o o d s (b) £36^ m i l l i o n t o a l l other propelled vehicles. T h i s sum - a b o u t £24 y i e l d of l i c e n c e vehicles - and p e t r o l is to bear i t s (Paragraph 77). fair mechanically­ (Paragraph 75). d u t i e s from commercial t o b e made b y c e r t a i n c l a s s e s . class vehicles: m i l l i o n more t h a n t h e involves considerable share be one caused by of w h i c h a c o n s i d e r a b l e p r o p o r t i o n , ( P a r a g r a p h s 75 - should of t h e r o a d a t means a l l , in full goods mechanically-propelled speed and u n l i m i t e d f r a n c h i s e scale of t h i s of t h i s c o m b i n a t i o n came t o t h e c o n c l u s i o n t h a t seemed r e q u i r e d , "ton-mileage" 72). On c l o s e e x a m i n a t i o n Conference other 69) "petrol £23,847,544 to commercial and £36,152,446 to a l l vehicles. made f o r given by t h e taken. consumption ( P a r a g r a p h s 68 - c r i t e r i o n and t h o s e given by the c r i t e r i o n was t h e r e f o r e correction increasesin the present goods contributions This i s i n e v i t a b l e i s of road expenditure. each obsolete The p r e s e n t b a s i s of c o n t r i b u t i o n and i n a d e q u a t e . More t h a n h a l f is in certain respects the contributions made b y t h e o w n e r s o f m o t o r v e h i c l e s i s now i n t h e f o r m o f a n 8 d . p*ar gallon petrol escape t h i s duty. Steam, e l e c t r i c duty. (Paragraph weight. that - but at present The s c a l e it stops at This gives a preferential high road expenditure. The C o n f e r e n c e rightly 5 tons of t h e l i c e n c e d u t i e s f o r same f o r v e h i c l e s n o t than (Paragraph the different just classes 79). detailed of These d u t i e s are s u b s t a n t i a l l y the exceeding 3 tons unladen weight, but for reasons indicated above, vehicles - especially are heavily increased for t h o s e w h i c h p a y no p e t r o l duty and, therefore, licence 89). The p r o p o s e d l i c e n c e d u t y h a s b e e n w o r k e d o u t f o r c l a s s of c o m m e r c i a l goods v e h i c l e s by c a t e g o r y and w e i g h t give the appropriate total present p e t r o l duty i s The e f f e c t for the class of t h i s a c t u a l l y run to the extent as regards the balance, is that, so a s on t h e a s s u m p t i o n t h a t within each c l a s s , to the^ according to individual distance t o w h i c h p e t r o l d u t y makes up t h e r a i s e d by l i c e n c e d u t y , d o e s more t h a n t h e a v e r a g e of i t s loses. each continued. v e h i c l e s pay more or l e s s of t h e t o t a l which does l e s s , the heavier make n o c o n t r i b u t i o n t o r o a d c o s t s e x c e p t t h r o u g h t h e i r (Paragraph unladen involve u n a n i m o u s l y r e c o m m e n d s new a n d commercial goods v e h i c l e s . duties. heaviest advantage to t y p e of v e h i c l e w h i c h t h e e v i d e n c e shows t o disproportionately entirely present A 1 0 - t o n v e h i c l e p a y s no m o r e i n l i c e n c e d u t y a 5-ton vehicle. scales the t h e development of t h e i n considerable numbers. increases with tonnage that from t h e f a c t of d u t i e s was f i x e d b e f o r e t y p e of v e h i c l e oil vehicles 78). Another anomaly a r i s e s scale and f u e l the vehicle c l a s s g a i n s , and t h e total; which vehicles In these circumstances the Conference it is important that duty should remain as high as i t (Paragraph 90). HART I I I ; The r a i l w a y s system of of i s of control common c a r r i e r s is at present. REGULATION AND LICENSING. are subject t o an e x t e n s i v e and r e g u l a t i o n and s u p e r v i s i o n . especial importance the railways Similarly, c o n d i t i o n s of s e r v i c e in regard to to such as t o g i v e very It competition the railway is agreed that should take place had, therefore, on t h e o t h e r hand of effective employees. ought t o b e more o n a n liberty for proceed the recommending c e r t a i n p u b l i c railway safeguard service. 9^)* In general, the Conference considers that to t o w h i c h a s e r v i c e , w h e t h e r by r o a d o r r a i l , service the necessity for some p u b l i c safeguards the must r e g a r d e d a s p a r t a k i n g o f t h e c h a r a c t e r o f a common (Paragraph equality. to consider whether to to be extended t o t h e o p e r a t i o n of motor t r a n s p o r t extent and t h e c o n d i t i o n s upon which i n t h e d i r e c t i o n of a s k i n g f o r g r e a t e r (Paragraph person 93)* The C o n f e r e n c e or, As carry the arrangements as to wages are system rates. are under obligation p r o t e c t i o n of t h e i n t e r e s t s of (Paragraph often This g o o d s a t r a t e s w h i c h do n o t d i s c r i m i n a t e b e t w e e n o n e and a n o t h e r . that t h e p r o p o r t i o n t o h e o b t a i n e d , b y means of the petrol meticulous considers be carrier arises. 95)* I n t h e m a t t e r o f r a t e s w h e r e i-t m i g h t s e e m p r i m a facie that whole a r e a of t h e as regards the existence of railways' effective w o r k make t h e s y s t e m i n railway rates unnecessary, i s recommended. Capricious competition over no f u n d a m e n t a l discrimination i t may i n some c a s e s s e c u r e e x t r a in rates, r e c e i p t s and i n the force change while others extra traffic not otherwise obtainable, is no satisfactory­ principle for common carriers to work upon, either from the point of view of the transport industry itself or of the trade and commerce served. Indeed, when a common carrier service is organised in large units, the commercial obligation of fair treatment towards customers must, in practice, prevent such discrimination. (Paragraph 9 ^ ) * The same is true as regards wages and conditions of Service. The less favourable conditions obtaining over a parjr of the haulage industry are due to the greater number of individua units in that industry. In justice to the employees and also in the interests of both of the railways and of those hauliers who are struggling to maintain satisfactory wage rates and conditions of work, it is of the utmost importance that an end should be put to the abuses in these respects which have so far attended the organisation of the industry in so many small units. (Paragraph 9 7 ) . In addition, the Conference agrees that the public has a right to be assured that the vehicles using the public roads should be - and should be maintained - in a state of fitness. This necessity has been recognised in the case of public service (passenger) vehicles. (Paragraph 9 8 ) * For these reasons, the Conference considers that some regulation of goods motor vehicles is necessary; and that this regulation can be enforced only through a licensing system. The Conference agrees, without hesitation, that all such vehicles should be required to have licences which are conditional upon the observance of proper conditions as to fair wages and conditions of service, and the maintenance of the vehicles in ft state of fitness. (Paragraph 99)* Any individual at present has an unlimited right to enter the haulage industry, without any regard to the pressure on the roads or to any existing excess of transport facilities. This unrestricted liberty is fatal to the organisation of the industry in a form suitable to a carrier service purporting to serve the public. On the other hand the Conference was equally impressed with the evil of any system which would prevent trade and industry from securing the form of transport which is best adapted to its ever changing needs at the lowest practicable cost that can bo obtained on a salutary basis. (Paragraph 1 0 0 ) . In these circumstances the Conference agreed upon a scheme which is defined in specific recommendations (Paragraph 1 0 1 ) . - The Conference makes a distinction, recognised by the Royal Commission on Transport, between "hauliers" who, like the railways, convey the goods of others and "ancillary users" who own goods motor vehicles as ancillary to their commercial undertakings. (Paragraph 1 0 2 ) . The Conference considers that both hauliers and ancillary users should be subject to regulation, enforced through the grant of licences, as regards fair wages and conditions of service and the maintenance of their vehicles in a state of J fitness. (Paragraph 10*), In other respects, however, it is considered that hauliers, with the right to carry the goods of the public, should properly be subject to some measure of regulation not applicable to ancillary users. (Paragraph 10J?). It is felt that the hauliers enjoying this right should be an enterprise separately constituted as a bona fide business. ­ Overlapping of financial interests between hauliers and 61 0 ancillary users is inevitable in many cases, but the accounts should be separate and the concerns legally separate. Ancillai^ users conversely should, as the counterpart of the freedom they enjoy, be prohibited from carrying any other goods other than their own, except as regards vehicles confined to a radius of 10 miles from their place of business. (Paragraphs 106 ­ 111). In the case of hauliers, the Conference thinks that the licensing authority may properly have regard to any such excess in existing transport facilities as may make the grant of a licence for the full number of vehicles asked for against the public interest. Any such restriction of the free normal development of transport facilities must be applied with great care; it must reflect a general policy adapted, to the needs cf different periods; and it must be developed as a national policy on consideration of all the interests involved, and applied subject to a convenient and inexpensive machinery of appeal, through local licensing authorities. Por this purpose, the Conference recommends the constitution of a permanent Central Advisory Committee to advise the Minister sf Transport as to the instructions which he should issue to the local licensing authorities. (Paragraph 1 0 7 ) . In the case of ancillary users, however, the Conference recommends that no restriction on these grounds should be imposed. Subject always to certain conditions, (e.g., fair wages and conditions of service, etc.) it considers that the industrialist and the trader should remain free to utilise as many motor vehicles as they find their business requires,, With this safety valve, there is no cause to fear that any form of semi-monspoly which may develop by a large scale organisation of the haulier.)industry, or close relations between that industry and the railways, will be against the public interest,, (Paragraph 1 0 8 ) , On the contrary, it would he to the great benefit o f UJ! concerned if the relations between the different sections of the transport industry became such that they were less concerned with mutual competition than with the organisation of complementary (Paragraph 1 0 9 ) . function. The Conference then recommends a definite scheme based upon the foregoing principles. (Paragraph 1 1 1 ) . In the introduction of the above system the Conference presumes that care would be taken to prevent unnecessary disturbance and hardship, It is considered, for example, that all hauliers already in business, when the Conference was appointed in March last, should without question receive their first year's licence for the number (or equivalent tonnago) of the vehicles employed by them at the time of the licence application. (Paragraph 1 1 2 ) , The Conference further recommends that operators should be required to keep such records as will help to secure the due observance of the prescribed conditions of maximum weight to bo carried and hours of work; that the licensing authorities shall have the right of access to information as to the rates charged by by an applicant; and that, while the licensing system proposed should be brought into immediate operation, the Minister should examine the question of publication and control of rates, in consultation with the Central Advisory Committee. 117 - (Paragraphs 119). In many cases the heavier types of vehicles cause excessive damage to the roads and involve disproportionate expense to the highway authorities. These authorities already possess powers to secure the exclusion of specified types of vehicles from certain roads. The Conference contemplates that if the heaviest type of vehicle should be utilised in increasing n u m b e r s on c l a s s e s of roads which a r e c l e a r l y u n s u i t a b l e , much m o r e e x t e n d e d u s e of necessary. the powers r e f e r r e d t o may b e (Paragraph 1 2 0 ) . PART I V ; DIVISION OF FUNCTION AND GENERAL. The C o n f e r e n c e feels that t o some e x t e n t these are covered by the recommendations as t o the incidence costs and licensing practicable control, and doeo n o t c o n s i d e r zo go much f u r t h e r than t h i s in determining and p r e s c r i b i n g r e s p e c t i v e 121 - a questions of highway it the d i r e c t i o n functions. of (Paragraphs 125)* m The C o n f e r e n c e r e c o r d s i t s R o y a l C o m m i s s i o n on T r a n s p o r t it is not "in diversion af the n a t i o n a l agreement, (Final Report, interest heavy goods t r a f f i c I t a g r e e s i n recommending t h a t from roads", of T r a n s p o r t classes should of t r a f f i c which and which, having regard t o the c h a r a c t e r from b e i n g to go, are unsuitable for transferred in future recommends t h a t he s h o u l d examine the further the railways to the the Minister t h e commodity and t h e d i s t a n c e haulage, with Paragraph 2 6 7 ) that to encourage obtain powers to p r o h i b i t by r e g u l a t i o n are borne by r a i l however, to t h e r o a d , of road and the question and take the a d v i c e of the C e n t r a l Advisory Committee. The C o n f e r e n c e divide i t s e l f require it, determine, conceives that between r o a d and r a i l and the f a c i l i t i e s "The f a i r e r i n t h e main t r a n s p o r t a s t h e demand of mainly that through and r a i l public the b e s t the deliberate transport the f u l l division effort B u t we obtained of t h o s e engaged i n their s e r v i c e s and g i v e a d v a n t a g e s of c o m p l e m e n t a r y (Paragraphs 1 2 7 - 1 2 8 ) . sound. of f u n c t i o n w i l l b e to co-ordinate it, o f c o s t s w h i c h we reoommend w i l l t e n d t o make t h e r e s u l t m o r e e c o n o m i c a l l y believe t h o s e who o f f e r e d b y t h o s e who p r o v i d e incidence will service". road the ^ In conclusion the Conference states that such a comprehensive measure of agreement reached has necessarily been arrived at by a process of give and take, and concessions on both sides. "It is expressed in a scheme of which each section is an integral and inter-*­ dependent part of the whole. It must not be assumed that if one part was rejected we should remain agreed upon the remainder. Conscious, therefore, that the rejection of one part of our scheme might endanger the whole, we have taken special pains to avoid prejudice to absent interests. subjects In view of this necessary interdependence of the various we have dealt with we have tried to avoid any solution which might be acceptable to ourselves at the expense of others not represented. The incidence of highway costs which we recommend, for example, is not inconsistent with either a reduction, or a continuance, or an increase of the charges now levied on private motorists. Increase:, in the rates to be levied on the class cf transport represented at our Conference do not prejudice the interests of other road users or either central or local revenue authorities. Moreover, our scheme does not deprive trade and industry of the practical convenience afforded by the existing liberty of the ancillary user". (Paragraph 133). "As regards our specific calculations and assessments, it is obvious that they are in the nature of the ca;3e based to a considerable extent upon an appreciation of the importance of numerous factors upon which individual judgment will differ. Those who examine our proposals primarily from the point of view of any one of the main interests concerned will doubtless consider that we have given too little or too much weight to specific factors. But we venture to suggest that the fact that a Conference, composed as ours is of representatives of both railway and road transport, has been able to make unanimous recommendations, gives a strong presumption that, although we may have erred on this point or that, the scheme as a whole may be regarded as affording a fair basis upon which the different sections of the great inland transport Industries can develop". (Paragraph 1 3 5 ) . A p p e n d i x II, 111. With this preface we make the following recommendations:A. All owners of goods motor vehicles used on public highways (both hauliers and ancillary users) shall hold an operating licence. Note.- No charge shall he made for this licence; each motor owner paying all that should he required of him in the iorm of his ordinary revenue licence duty and through the petrol duty. B. The licence shall he conditional upon payment of reasonable wages and observance of proper conditions of service, in respect of the driver, and upon an undertaking by the owner that the vehicles employed under the licence are and will be maintained in a proper condition of fitness. Note.(i).- If any of the vehioles are found to be not so maintained, the licence may be ax once suspended in respect of such vehicles. Note (ii).- It is contemplated that the proposed local licensing authorities will ascertain and publish the local standards of wages, etc., prevailing; and will be prepared to consider evidence that the rates and conditions applied by a particular applicant for a licence are below this standard in deciding whether to grant or renew the licence. No attempt has been made to work out the precise method for enforcing this principle, as this can be done better by the Minister of Transport and Minister of Labour. Note (iii).- As regards fitness, it is not considered that prior or periodical examination of goods vehicles is necessary; but that any vehicle might be examined and, if found unfit, the licence in respect of it should be withdrawn or suspended. C. A plate (differing in colour for hauliers and ancillary users) shall be affixed to each vehicle, giving the ^ number of the owner's licence and an individual number. This shall (as in the case of public service (passenger) vehicles now) be additional to the revenue licence plate. In applying for a licence the applicant shall attach a list of the vehicles which he desires to be licensed, giving particulars of the registration numbers, unladen weights and maximum loads (and these particulars should also appear on the vehicle). If a margin of vehicles is required for permissible expansion during the licensing period, the requirement shall be stated in the application, and registration particulars and other information supplied as the vehicles are brought into use. ? 0 l b x Note.- As appears "below, the statement of the number of vehicles required "by an ancillary user, while b e i n g utilized for record, would not be questioned. D. The licensing authority shall grant the licences requested by a haulier except where the grant would be in whole or in part a g a i n s t the public interest on consideration'of t h e following factors (i) any excess in t h e existing transport^facilities suitable to meet the public /requirements to be served by the applicant; (ii) any actual or prospective congestion or overloading of the roads; (iii) the licensing authority shall be entitled to call for and take into consideration particulars of the c o n v i c t i o n s registered against t h e applicant or his employees for the previous year i n respect of offences in connection w i t h his road transport vehicles; or of his bankruptcy; (iv) the licensing authority shall act subject to such directions as he may receive from t h e M i n i s t e r Of Transport, who shall be. a d v i s e d f o r t h e purpose by a new permanent Central A d v i s o r y Committee of appropriate composition t o be set up for the purpose; (v) he shall publish in a suitable form periodical s t a t e m e n t s of applications f o r new l i c e n c e s with t h e d a t e b y w h i c h a n y memorandum o f o b j e c t i o n must be f o r w a r d e d to h : u . He s h a l l c o n s i d e r s ^any Memorandum so received a n d m a y , at h i s discretion, a s k for oral e v i d e n c e in s v t p p o r t or answer to it. But he shall n o t be p r e c l u d e d from granting temporary interim licences. E. An ancillary user shell be granted freely such licences as he may request i o r the carriage of his own goods, subject to the conditions specified in B and C but not in D above. The holder of an ancillary licence shall after due notice be prohibited from carying any other goods than nis own whether for reward or reciprocal service; except as regards vehicles confined to a radius of ^0 miles from his place of business. There shall be a right of appeal from the decisions of the Local Licensing Authorities. Note.- We consider that the Minister of Transport should arrange a machinery of appeal on the advice of the Central Advisory Committee proposed in ' D" above. We c o n s i d e r it of great importance that this s h o u l d b e s u c h as to avoid delay and in p a r t i c u l a r l e g a l I expense, the p r o c e d u r e b e i n g s u c h . , lor e x a m p l e , aa t o w a k e the e m p l o y m e n t o f c o u n s e l u n n e c e s s a r y and unsuitable. f* ^ & 112. In the introduction of the above system we presume- " that care would be taken to give such notice, to frame the regulations in such a way, and to make such arrangements, as will prevent unnecessary disturbance and hardship. We consider, for example, that all hauliers already in business (or ancillary users employing some of their vehicles partly in haulage operations who apply for a haulier's licence for such vehicles) when our Conference was appointed in March last should without question receive their first year's licence for the number (or equivalent tonnage) of vehicles employed by them at the time of the licence application. Similarly, we consider that reasonable notice should be given before the enforcement of the prohibition against ancillary users carrying the goods of others for reward or reciprocal service.