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N. K. Kurup

TRUCKERS are on the warpath. The All India Motor Transport Congress, which called for an indefinite strike from April 14, to secure its charter of demands, says it gave enough time to the Government to sort out the truckers problems. Its demands (among other things) include no cess on diesel; no toll roads; no scrapping of old vehicles; no excise on truck chassis; a minimum freight rate to be fixed by the Government.

Truckers undoubtedly have some genuine problems. But those are not related to these demands, which are rather frivolous. For example, the demand that the Government should fix a minimum freight rate for trucks. Right now, there is an over-capacity and, therefore, underutilisation of vehicles. Here, the market forces are at play. Truckers' margins are under pressure. The situation will improve as the economy picks up from the current slowdown. If truckers still feel the need for a minimum freight rate, they themselves can evolve one or the All India Motor Transport Congress can fix it. There are similar arrangements prevailing in other sectors. Liner lines in shipping follow a voluntary minimum freight agreement which helped them to maintain rates from falling below the economic levels.

Similarly, truckers' arguments against toll roads — since they are already paying cess on diesel and other taxes why should they pay toll on a new road — is not logical. Toll is a user charge for a particular facility levied to recover its cost over a period of time.

The user gets the advantage in terms of the time saved, energy cost and faster movements of goods. Cess, on the other hand, is a development surcharge which is used for the creation of additional facility; in this case, construction of more roads across the country. Whether the Government is using the cess collection prudently or not is an altogether different issue.

The opposition to scrapping of old vehicles again is not fully justified, though there is a point in the truckers' arguments. "It is not the age of the vehicle but its condition that matters,'' argues a truck operator, suggesting that old vehicles should be allowed to ply if they have a road worthiness certificate.

This is possible but the system can lead to corruption if not implemented efficiently. Instead, levy of "pollution or over-age tax'' on vehicles could be tried to discourage their continued use. It is not easy for a truck owner with one or two vehicles — they number in lakhs — to get rid of them as soon as it reaches 15 years. He would not have enough savings to investment in for a replacement. Here, the State or the Centre Government, with the help of banks and financial institutions, can come out with a more easier scheme to help the vehicle owners.

There are other issues such as lack of uniform laws governing motors vehicles throughout the country. This creates problems for truck-owners who are subject to harassment at check points at state borders. Similarly, truckers complaints about insurance companies not following IRDA guidelines in respect of third-party insurance cover and amendments in the Goods Carriers Act of 1865 need to be looked into.

In any case, strike is not a solution to all these issues. It will be self-defeating. If the strike is prolonged, it would result in economic problems.

In Mumbai — where the truckers are already on strike for the past few days against levy of Rs 500 per day fine on vehicles over 15 years of age — prices of commodities suck as sugar, pulses and edible oils have already gone up. The Government and the truck operators should find an early solution to end the strike.

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