New financial thresholds set for O-licence applications

New financial levels now apply for the processing of operator licence applications and continuations, the Office of the Traffic Commissioner (OTC) has confirmed.

Both new applicants and existing operators are being asked to produce evidence that their operations meet revised criteria ahead of the 1 January 2015 deadline, when the new financial standing levels come into force.

The changes are a requirement of EU Regulation 1071/2009, which requires non-Eurozone member states to revise the relevant sums each year to account for shifting exchange rates.

Said the OTC: “Standard national and international licence applicants will be required to demonstrate £7,000 (previously £7,400) for the first vehicle and £3,900 (previously £4,100) for each additional vehicle they request to be authorised.

“Operators making variation applications will be required to demonstrate financial standing for their existing fleet and any additional authorisation against the new levels.

“Any applicant or licence holder appearing at public inquiry before a traffic commissioner after 1 January 2015, where additional evidence of financial standing is requested, will be required to satisfy the new levels.

“There is no change to the rates of finance which must be available to support a restricted licence or application: £3,100 for the first vehicle and £1,700 for each additional authorised vehicle.”

“Where a standard licence holder cannot demonstrate financial standing, Regulation (EC) 1071/2009 allows (but does not require) the traffic commissioner to provide a period of time to rectify the situation,” the OTC continued.

“The operator may be given a limited time to make written representations before the traffic commissioner decides whether to allow time for rectification and for what period by way of a notice served under the legislation.”