RAIL-BUS WAR ENDS

Poverty Bay Herald, Volume LIX, Issue 17951, 1 December 1932, Page 9

RAIL-BUS WAR ENDS

TRUCE AMONG GROUPS FAIR COMPETITION LONDON, Oct, 23. The “Road versus Rail” war, which has been threatening to ruin the already hard-pressed British railways, apparently is near a peaceful end. A truce has been arranged in the form of an agreement between the two rival transport groups on what is believed to be a fair competitive basis. To equalise competition, ail classes of vehicles .which carry passengers or freight are to be required to pay £7,125,000 more each year toward the upkeep of the highways, in the form of licenses and, petrol tax. The burying of the hatchet took the form of a report unanimously approved by a conference of representatives of the Big Four railways and leading commercial freight groups. LEGISLATION EXPECTED Soon after Parliament reconvenes the Government is expected to give legislative effect to the proposals set forth in the report. It is generally admitted that the proposals are distinctly favorable to the railways, but considering the obvious inequality that now exists in regard to the upkeep of their permanent ways, they.are not to receive more than they deserve, most newspapers declare, not overlooking the effect that the tax increases for heavy lorries are severe. Railway track costs (paid entirely by the companies themselves) corresponding to those provided by public authorities for road users for 1.930, totalled £64,000,000. After consideration of tho road accounts for the past five years, £60,000.000 was taken ns tho annual expenditure on roads to be charged to mechanically-propelled vehicles. COMBINED BASES The proportion of this total to be borne by each class of vehicles was estimated on the combined basis of petrol consumption and “ton-mile-age,” or the average laden weight multiplied by the average annual mileage per vehicle. On this basis, the Salter conferees decided that commercial freight vehicles should be required to pay £23,500,000 and all other vehicles £36,500,000. New taxation rates which are great ly increased on vehicles over three tons and still more on those which do not use petrol, are based on the assumption that tho present tax on petrol will continue. It is 8d per gallon. Thus, those owners employing steam, electric and fuel-oil vehicles, who hitherto have escaped, the petrol tax, will become liable for their share toward the road upkeep, if tho Salter proposals become effective. EFFECT OF PROPOSALS The effect of the proposals can be gauged by the following examples:— A fuel-oil lorry of nine tons unladen weight with solid tyres, now paying a license duty of £6O a year, will be required to pay £3BB. A motor lorry of nine tons weight, paying a duty of £6O, would have to pay £282. Taxis, or any other passengercarrying vehicles with a seating capacity' not exceeding four persons, will bo asked for an additional £87,470. The annual taxation paid bv a lamdon 60-seatcr bus is to be raised by 50 per cent:., from £370 to £555. Other proposals were that regulations should be promulgated on freight vehicles in regard to labor conditions, fitness of vehicles and, perhaps, traffic rates; that licenses should lie ret used where existing road transport faedities arc in excess ami that heavier vehicles should be excluded from certain roads. . , . But otherwise, the report, declares, there should be no attempt to force back to the railway traffic now being carried bv road transport vehicles.