The Transport Committee is examining grievances about use of community transport permits, questioning those at the sharp end. We report from Westminster
On the face of it, the issue appears clear. Anyone who is driving for ‘hire or reward’ should be complying with the relevant transport legislation.
This is EC Regulation 1071/2009, which came into force on 4 December 2011, and the 1985 Transport Act.
The problem arises over in whether ‘hire or reward’ is enforced and, specifically, how the word “exclusively” in the phrase ‘non-commercial’ in 1071 is interpreted; particularly when it comes to operations using Section 19 permits (s19).
Long running saga
This is issue is not new. Indeed it was the Big Story in this magazine’s first issue in 2003. Now, matters have been brought to a head after a complaint to the European Commission (EC) from the Bus & Coach Association (BCA), representing 80 operators.
The EC ruled that the Department for Transport’s (DfT) guidance, permitting commercial contracts to be operated under s19, was incorrect. It issued a letter citing an “infraction” of EU law. The DfT was left with two choices: Disagree and end up in the European Courts, or change its guidance to comply.
Its guidance (interpretation of the law) is enforced by the DVSA, which can report non-compliance to the Traffic Commissioners (TC).
On 31 July the DfT wrote to all s19 holders, trade bodies and councils, that it will issue a consultation in “the autumn”, followed by new guidance and changes to the 1985 Act.
The four-page letter said “guidance has not kept pace with developments” and explained how the derogation in 1071 should be applied. It also said in when an O-Licence is required.
The letter was in part prompted by the BCA which, in the absence of DVSA enforcement, threatened to take the DfT to court over the alleged failure of Erewash Community Transport (ECT) to comply with the law. The BCA argues that ECT is carrying out contracted work under s19, in breach of 1071.
In September 2016 the BCA made 104 complaints to the DVSA about alleged ‘illegal’ operations. The BCA says these were not investigated, prompting its threat of legal action.
Consternation
The DfT’s letter caused consternation among community transport organisations (CTOs). A number of local authorities (LAs) no longer allow s19 operators to bid for contracts and are terminating existing contracts.
The House of Commons Transport Committee inquiry aims to probe the whole issue. The consultation is awaited leaving unanswered questions, but the Committee hopes its deliberations will help inform the ultimate outcome.
On Monday (13 November) it held the first of two public hearings. First up were BCA Director Martin Allen and Confederation of Passenger Transport (CPT) Policy Development Director Steven Salmon, representing commercial operators.
They were followed by Community Transport Association CEO Bill Freeman, ECT Chairman Frank Phillips and Anna Whitty of campaign group Mobility Matters.
Pre-hearing papers
The Committee has received 124 written submissions and the hearing attempted to probe deeper. Yet, after nearly two hours, observers may have wondered how much wiser the Committee was. But there was agreement from all sides on two things.
Firstly that more clarity is needed from the government, which Mr Allen and Mr Salmon agreed has been dragging its feet, resulting in the current situation.
Secondly, that no one has any idea how many s19 permits (one per vehicle) are in use. The BCA estimates around 150,000 vehicles, based on the last published figures. There was also agreement that a central register of permits should be kept.
CTO representatives agreed that a wholesale review of legislation covering the small vehicle sector would be welcome.
The committee established that a relatively small number – again exact figures are unknown – of large multi-million pound turnover CTOs are doing much of the disputed work, but here is a divergence. It appears that more populated conurbations have more activity.
Mr Salmon said CPT members say it only affects certain geographical areas. Mr Allen disagreed, saying it is countrywide.
CTO representatives said changing to O-Licences and qualified drivers would have massive effects on CTOs, depriving them of funding, due to the higher cost base.
What that would be is debatable. Mr Phillips suggested £2,000-3,600 per driver for licence training, plus other on-costs, such as the driver CPC, and higher MoT standards.
routeone Comment
Crucially, Mr Freeman asked “why now”, arguing that if the issue was paused until we left the EU, the UK would have the opportunity to put in place revised domestic legislation that “fits the UK’s unique approach to transport.”
In that respect he’s right: On the continent volunteering, in all walks of life, is relatively rare and it is the state that provides.
Mr Salmon suggested that another way would be to have a new set of standards better suiting small operations as “small entities and charities are similar in terms of their service to the public.”
Armed with the evidence to date, we hope that the committee’s second hearing produces some robust questioning and pithy answers.
In short
The Transport Committee is made up of MPs representing the political make-up of the house. Like all Select Committees, its role is to scrutinise the government and hold it to account. The written submissions are here and video of the first evidence session is here
The second evidence session is expected very soon and is likely to see TC, DfT and DVSA representatives called.
