Volume and depth of responses received both in excess of what was expected, but key thread is a requirement for more clarity in proposed guidance; commercial versus non-commercial is hot topic
The Department for Transport (DfT) has released an interim report outlining the 494 responses to its consultation on the future of section 19 and 22 permits.
It says that both the volume of responses, and their depth and complexity, are unusual for a consultation of this nature. Analysis is thus proving to be complicated.
Permit holders provided the majority of responses. Many of them, along with those from local authorities (LAs), ask for further clarity on the proposed guidance text, and they also suggest the inclusion of good practice examples of how to evaluate certain types of service.
Additionally, many permit holders and LAs are concerned about the impact of the DfT’s interpretation of the non-commercial stipulation on services currently provided via permit.
The Community Transport Association takes issue with the DfT’s position that non-commercial does not necessarily mean not for profit. Campaign group Mobility Matters says that non-commercial should not apply to individual services, but to the undertaking as a whole.
The report goes on to state that many community transport operators (CTOs) say that as “commercial” meant the intention to make a profit, the proposed “non-commercial” exemption should thus mean having the intention not to make a profit. “In general, there remains confusion and disagreement about the terms… and it is clear that greater clarity is wanted,” the report reads.
Potential prevention of occasional private hires to raise income and subsidise other services is also identified as a major issue by respondents. “Some note that removing the ability to do that would result in many CTOs reverting to a greater dependence on grants and donations, significantly affecting their continued viability,” the report continues.
“Some think that it should be possible for private hire to be carried out by permit holders as the overall purpose of the organisation was not to generate profit.” Clarity is also requested as to how concessionary travel reimbursement will be treated, and whether the value of volunteers’ time is factored into the cost equation. CTOs argue in favour of that; commercial operators disagree.
How permit holders will prove that no commercial operators are interested in a contract – one of the key exemptions proposed by the DfT – has created concern. Several respondents say that would effectively give commercial firms a ‘veto’. Clarity on what happens if circumstances change during the period of a contract is also requested, and how “vexatious bids” from the commercial sector would be dealt with is questioned.
Submissions were also received concerning many other topics relating to the proposed guidance. The DfT intends to publish a formal response in the autumn.
Read the full report at: bit.ly/2OqLpvZ
