Costs of the road track

first report
Author(s)
-
Year
Abstract

Before formulating the final purpose of the research mentioned in this report, it seems right to indicate more precisely the aim and methods of the transport policy applied in the Netherlands, in order to throw a light on the background, against which this research ought to be seen. The aim of the Netherlands transport policy can be described as an attempt to attain durable and reasonable transport possibilities. Owing to the fact that transport undertakings can carry out the transport in various technical ways the attempt mentioned above ought to be realised by means of a coordination of transport. The opinion is held in the Netherlands that the most efficient method of coordination is, that the distribution of transport for the various means of inland transport takes place via the effect of the price mechanism in the transport market. This is only possible if the users of means of transport have the greatest possible freedom of choice with regard to the modes of transport. Should the choice of the users be such that the resulting distribution of the transport is in accordance with the aim of the transport policy, certain conditions must be fulfilled. As a matter of fact the price level of transport undertakings will have to show that in principle the total of costs are covered by the total of receipts. Only in that case the durability of the transport possibilities is guaranteed, whereas prices also show where the users can obtain the most profitable service. From the viewpoint of a durable and reasonable transport service it is moreover necessary to avoid a surplus of demand and not to keep out new competitors, who are able to carry out the transport at a lower social price. In principle this motivates the policy regarding the licence system with respect to the establishment of undertakings and the allowance of their capacity. Another condition is that the costs of transport undertakings do not deviate considerably from the economic costs. This condition is f.i. not fulfilled, if facilities are accorded by Government to certain undertakings, or if special charges are imposed. In such cases certain transport undertakings only seem to be cheaper or dearer than others, which will influence the distribution of the transport. The necessity of costs of transport undertakings and economic costs being as identical as possible can be formulated in the well-known expression that comparable terms of competition must exist for undertakings of inland transport. If, with a view to the above, the situation in the Netherlands transport is considered, then it is evident that a considerable difference exists between railways on the one hand and road transport and inland shipping on the other hand. The railway companies namely bear their track costs themselves, whereas for road transport and inland shipping the land- and waterways are kept in working order by the Government or other institutions of public law. It is true that the inland shipping is in some cases charged with a tax for the use of waterways, but it is a well- known fact that these taxes only cover an inconsiderable part of those costs of the total waterways, which must be apportioned to the inland shipping. In course of time the Government has charged the road transport with taxes; these taxes however are for the greater part not meant as a payment for the use of the road track. In a few publications, f.i. that of the „Centraal Overleg van Wegverkeers- en Vervoersorganisaties" - "The charges on motor traffic and the costs of the Road", a direct connection is made between the total proceeds of the taxes and the total amount of expenses on behalf of the road track, in both cases as far as the motor traffic as a whole can be charged. From the confrontation of the total amounts conclusions are drawn with regard to the fiscal policy, respectively to the investment policy concerning the road track. With a view to the abovementioned general character of the taxes, such a confrontation leads for the aim in question to incorrect conclusions. If the matter is considered not from a fiscal, but from an economic point of view, even then this confrontation of expenses and receipts has no meaning, as it does not concern two opposite streams of money. For, against a transfer of income in the shape of payments by the road users to the Government can be put an achievement of services by the Government to the road users - namely use of the roads -. This last achievement, which can be considered as a transfer of income, does not consist of money, which has been spent by the Government in a certain period to the benefit of the road track, but consists of facilities, which the motor traffic enjoys and which are represented by exploitation costs (amongst which also those of financing and management) of the road track. The difference between costs and expenses will be further explained in the third chapter of Part I. Formally speaking could be stated that the road track is put at the disposal of the road users, almost completely free of charges, which means, that in comparison with the railways the road transport undertakings get a subsidy from the Government. The amount of this subsidy can be measured on the basis of the costs of exploitation and management of the road track in so far as these costs can be apportioned to those undertakings. On the other hand the same road transport undertakings, again in comparison with the railways, are subjected to a number of special taxes by the Government. So, from a viewpoint of transport coordination there exist two opposite income transfers, and therefore the question arises, in how far the competitive relations can be disturbed. The answer to this question cannot be given by confrontation of total costs of the road track and total proceeds of taxes, levied on the motor traffic as a whole, as not all the various categories of motorized traffic compete with the railways. Moreover there is a difference per category in the extent of the use of the road track as well as in the share in the taxes levied. The aim of the research can be described as follows: The research has as purpose to check in how far the transfers of income caused by the Government can occasion repercussions in the competitive relations between rail- and road transport, which are in principle not in accordance with the aim of the transport policy of the Netherlands. As the accent lies on the competitive relations it is in this connection an irrelevant question whether the special taxes on the motor transport, which are included in the calculation, can be considered as destination taxes or not. Moreover from this aim can be concluded that the result of the research is only important for such transport, in which rail- and road transport are competitors. This especially will be the case for the transport of goods by motor truck and for passengers in motorbuses. The transport by private car has in this connection no influence at present. Although next to the facts that are treated in this report, still other elements might also have a disturbing influence on the competitive relations, this report is considered to have analysed the most important factors. In order to be able to answer the question, which share in the total costs of the road track and which share in the total of the charges to the motor traffic must be apportioned to those categories of motor traffic, that are in competition with other means of transport, it is in the first instance necessary to determine the total costs, which are apportionable to motor traffic and the total amount of taxes, levied on motor traffic. This report deals with the last-mentioned calculations. The researches and calculations made in this connection lead to the following classification of the report: The first part contains the theoretical approach to the problem, especially the description of what must be understood in this connection by burdens - the specific levies on the motor traffic - and by costs of the road track. Further this part contains a definition of road track, the basis of valuation for the various parts of this road track and its application to the costs of the road. Finally it mentions the way in which those costs of the road track can be eliminated, which must be apportioned to other users and interested parties than motor traffic. The second part indicates how the method mentioned in the first part can be materialized in practice. This will show that the theory cannot be followed in every respect, but that under certain reservations the material obtained can be applied to the aim in view. The figures mentioned in this part lead finally to the totals of costs of the road track and burdens to the motor traffic. A next report will contain the result of the research still in study concerning the way in which the total costs and proceeds mentioned in this report can be apportioned to categories of motor traffic and especially to motor trucks and buses. Finally in that report conclusions will be made from the outcome of the results obtained. The extension of the road track in the Netherlands as well as the rapid increase of the motorcar park render it necessary not to restrict the research to a certain year, but to state as well how the relation between costs and charges has developed in the course of a few years for the categories of motor traffic under consideration. The study concerns the period of 1950 to 1953 inclusive. (Author/publisher)

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Publication

Library number
C 51672 [electronic version only]
Source

The Hague, Government Prining and Publishing Office SDU, 1956, 63 p.

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This publication is one of our other publications, and part of our extensive collection of road safety literature, that also includes the SWOV publications.