The Community Transport Association has underlined its longstanding claim that neither the operation of contestable contracts nor money changing hands for the operation of contracts automatically constitute commercial undertakings.
Chief Executive Bill Freeman (pictured) says that during the recent Judicial Review (JR) into how the term non-commercial applies to the use of Section 19 and Section 22 permits, both the Bus and Coach Association (BCA) and the DfT softened their stances on the matter.
Community Transport Association: ‘Hugely significant’
“BCA’s campaign, and DfT’s initial response to those claims, argued that the mere fact that contracts had been won through a competitive process, and that money changes hands, meant that community transport organisations (CTOs) could no longer be deemed to have a non-commercial purpose,” says Mr Freeman. “What became clear in court is that BCA and DfT now accept that is not the case.”
He adds that such concessions are “hugely significant” in determining what constitutes operating for exclusively non-commercial purposes.
The Community Transport Association has long argued that the relevant legislation supports its view. BCA disagrees. Additionally, it says that at the JR, DfT’s Counsel accepted that the position outlined in a letter dated 31 July 2017 no longer represents its view.
That letter stated that if contestable contracts were operated and/or fares were charged, the operator could not regard itself as carrying out its activities exclusively for non-commercial purposes, and thus no vehicle could be operated using permits.
While that gives “cause for optimism,” Mr Freeman cautions that even if BCA’s case is dismissed, DfT will be required to issue guidance.
BCA hits back at claims
In response, BCA head Martin Allen says that the organisation “has no problem with genuine CTOs.”
Mr Allen believes that regardless of the JR’s decision, change is inevitable for large CTOs “that go far beyond their primary purpose objectives.” No concrete date for the judgment to be delivered has been given.
