At the first of a roadshow that aims to inform stakeholders of the details surrounding its consultation into S19 and S22 permits, the DfT drew scorn for the impact of its proposals on community transport
The scale of what faces community transport organisations (CTOs) in rural areas became clear at the first Department for Transport workshop on the future use section 19 and section 22 permits, held in Exeter on 5 April.
Each two-hour session is being used to explain what the DfT’s proposed changes mean as it enforces EU Regulation 1071/2009; to gather feedback on them; and to promote its consultation, which closes on 4 May.
The DfT says that, were it not for a legal challenge from the Bus and Coach Association (BCA), it would maintain the status quo that previously applied to permit holders.
However, it is clear that its hands are tied, and that it has no alternative than to commence reform. The Exeter session was led by Akwasi Mensah, who unjustly bore the brunt of vitriol from some delegates when the sheer scope of change was finally communicated to them.
For many of those CTOs, the proposals are, to quote one, “a disaster.†Some predict that of those organisations represented at the Exeter seminar, half will have closed within a year.
All about the exemptions…
The DfT proposes three exemptions to the requirement to hold an O-Licence. If they come to pass – and it looks like they will – they will govern what work may be undertaken using a section 19 or section 22 permit.
The exemption that refers to organisations whose primary occupation is not that of a road transport operator is not relevant to CTOs, but the other two are. And that is where they are being encouraged to contribute to the consultation, despite the seeming futility of doing so.
Of paramount importance to the DfT is gaining stakeholders’ views on the second proposed exemption, which concerns short distances. Akwasi says that it may allow some permit holders to continue largely as they do now, which is why opinions are being sought. However, it must be noted that any distance-based exemption will apply only to traditional community transport duties, and not where money changes hands.
The major point of contention is that this precise radius is not yet fixed. Moreover, what constitutes a short distance for an urban CTO will be much different to that in a rural area.
A suggestion that 20 miles may be the upper limit was received with scorn. One attendee pointed out that many journeys are double that, and the consensus is that different limits should be set for rural and urban areas.
Commercial or non-commercial?
Akwasi maintains that, until the BCA’s challenge, the DfT was happy to regard not-for-profit and non-commercial interchangeably, with the EU passing no comment on whether or not that was a reasonable interpretation.
Thing have changed since then. Now, the DfT’s view – based on legal advice – is that if money changes hands, the service is commercial and so an O-Licence is required. Additionally, if a CTO operates anything commercially, then the whole of its operation will be considered thus.
An exemption is proposed where the commercial sector shows no interest, but as soon as an O-Licenced operator tenders or registers a service, that exemption will become invalid.
Among CTOs there remains a belief that the DfT’s new interpretation of non-commercial is wrong. Many think that it should hinge on whether a profit is made.
One delegate made the case for sourcing a legal opinion. It is difficult to see what benefit that would bring. Both the BCA and the DfT have already obtained multiple legal opinions; all side with the DfT’s current view. Other CTOs take the view that the whole sector should be regarded as not-for-profit by default, but this again falls foul of the Regulation.
One delegate proposes a fleet size-based exemption. Were it to hypothetically apply to CTOs with five or fewer minibuses, he argues, it would potentially be demonstrable that they have no material impact on the larger transport marketplace.
“We cannot consider that under law,†says Akwasi, who adds that despite accusations otherwise, the DfT has not already formulated its plan and is not just going through the motions with the consultation.
The reaction from the floor
Reaction to the Exeter workshop was naturally grim. It is clear that in rural areas, contracts generate the bulk of the community transport sector’s income. If they dry up, many CTOs see closure as inevitable. Imposition of a 20-mile radius, meanwhile, will seriously impact the ability of those that may otherwise survive to deliver anything meaningful.
Where that leaves local authorities and service users is clear, and it is hard to believe that the DfT does not have its plans finalised already. “Those who have had a hand in this will have to face isolated people who have lost their only transport service,†says one delegate. “Treating them like that is disgraceful.â€
This is, without doubt, the biggest change ever to face community transport. The chances of convincing the DfT not to implement its proposals are slim. But it still wants you to contribute to its consultation.
The roadshow runs until 30 April. For details of more dates, visit bit.ly/2GpdYc5
To view and respond to the consultation, visit bit.ly/2GWR7lD
