Changes to the rules on the Operators Licensing System
From Sunday 4 December 2011 regulations will be introduced which will impact on all businesses operating large vehicles - from coach companies to skip hire firms.
The European Commission (EC) led changes to the Operators Licensing system will affect all businesses which hold a national or international licence to operate either goods or passenger vehicles.
The changes are particularly relevant to all vehicle operators’ designated Transport Managers. The new regulations will significantly impact on their responsibilities to oversee vehicles and drivers.
Laura Thomas, Employed Barrister at Birketts and member of their Road Transport team, explained: “Whilst new Regulation might seem an undue burden for operators, these changes will ultimately be a welcome addition for vehicle operators in the UK, who are already heavily regulated compared to many of their European counterparts. These new regulations will help level the playing field for all vehicle operators in the European Union.
But it is vital that all operators, and transport managers in particular, are aware of the updates to the operator licensing system, so if called upon to justify their licence to the Traffic Commissioner they remain fully prepared.”
The key changes will be:
- All Operators must be of ‘good repute’ to be granted and maintain a licence. This has now been extended to include all designated Transport Managers. If convicted of a serious infringement, the Transport Manager’s good repute can be taken away; ultimately meaning they lose their profession and employment.
- A national database register will be created of all operators and Transport Managers which will eventually cover the whole of the EU. This will include loss of repute and records of any serious infringements even where repute is not lost as it would be disproportionate to do so.
- Where the role of Transport Manager is delivered via an external consultant, the consultant will only be permitted to manage a total of four operator licences and a total of 50 vehicles.
- The Operator must be able to provide a core business address. Even if it operates across multiple sites a central address where driver records, documents and taco graphs etc will be held must be provided.
- Previously Transport Managers needed to hold either a national or international certificate of professional competence (CPC). The national certificate will now be abolished. For those who currently hold a national CPC it will remain valid, but any new Transport Managers will need to have an international CPC to prove professional competence.
- Transport Managers without a CPC could previously prove professional competence through ‘grandfather rights’. This will now be referred to as ‘acquired rights’ and is only valid if the manager can prove at least ten years continuance management of a transport operation prior to 4 December 2009.
- The EC has tightened up on the proof of ‘financial standing’ required by Operators to demonstrate that, in the event of a problem with the fleet, finance was available to fix it. Operators will now need to show certified accounts or opening bank balances. However UK Traffic Commissioners have recognised this could be difficult for smaller businesses and will consider overdraft and credit facilities etc where appropriate. The good news is that the amount needed for each vehicle will be reduced from January 2012.
- Operators can only be granted a licence if they can prove access to relevant vehicles owned or brought via Hire Purchase or available through a formal arrangement.
- The small trailer exemption no longer stands which may bring those who previously did not need a licence in to the operator licensing system.
For more information please contact Laura Thomas or Philippa Dyer.
To view a copy of the slides used at our Operations Licensing Regulation seminar, please click here.
