End to long-running saga; CTOs told that any commercial work means that whole organisation being outside scope of permits and that O-Licence, Driver CPC and unrestricted licence will be required
The Department for Transport (DfT) has signalled an end to competitive tendering by community transport organisations (CTOs) using Section 19 permits in a move that has a huge impact on the sector.
Instead, an O-Licence is required, along with unrestricted D1 licences and CPC cards for drivers. That is as per EU Regulation 1071/2009, enforcement of which has been the subject of a complaint to the European Commission by a group of commercial operators.
In a letter dated 31 July, Head of Buses and Taxis Stephen Fidler says that – contrary to previous guidance – the Regulation is “directly applicable” in UK law.
In a bombshell for the industry, he says that CTOs carrying out work “under contracts won in a contestable market and/or in exchange for fares charged at more than nominal rates… cannot be regarded as carrying out activities exclusively for non-commercial purposes, even if they are a registered charity or other not-for-profit organisation.”
Mr Fidler adds that if any competitively-tendered work is undertaken, the whole operation is subject to the same regulations as a commercial operators.
The DVSA recently issued a letter to a CTO after investigating alleged non-compliance. The CTO’s operations included a variety of competitively-tendered contracts under Section 19 permits. Drivers were paid and not all of them held a DCPC card and an unrestricted category D1 licence.
“That operator did not come under any of the derogations from the requirement… to hold an O-Licence,” says Mr Fidler.
He adds that organisations relying on permits inappropriately will need to take action to bring their services into compliance with legal requirements. Smaller and more traditional permit holders are unlikely to have any difficulties with that, but all CTOs should assess their continuing compliance.
A consultation will be launched in the autumn concerning the detailed changes required to update the current guidance, together with the proposed amendments to the Transport Act 1985, to clarify matters for permit holders and issuers.
In response, Community Transport Association (CTA) Chief Executive Bill Freeman has written to Under-Secretary of State for Transport Jesse Norman MP requesting a meeting to discuss the changes’ effects on users and people employed in the sector.
Mr Freeman says that services operated under the permits should be allowed to continue and that local authorities should work with operators to agree a process of moving to alternative arrangements.
Mr Freeman adds that DVSA should take no action against non-compliant organisations and drivers until the DfT consultation is complete. He calls upon groups represented by the CTA not to resist the changes, but that he can only do so credibly “if there is a commitment from the government to support them to make these changes.”
