TCs could call time on ‘one size fits all’ O-licence fee

The senior traffic commissioner (STC) has cast doubt on the continuation of the ‘one size fits all’ flat fee structure which currently funds the operator licensing system for truck and bus fleets – raising the possibility that fleet size may become a factor in determining fees in the future.

In her foreword to the annual report of the traffic commissioners (TCs), STC Beverley Bell (pictured, right) reported that feedback from an industry listening exercise had highlighted problems with the service provided by the Office of the Traffic Commissioner (OTC), which “did not reflect the realities of modern day logistics”.

The feedback suggested that the service provided by the OTC was not good enough and advocated the removal of paper O-licence discs, provided that the change was supported by effective IT systems.

“TCs agree that it is not acceptable for compliant applicants and operators to have to wait nine weeks for grant of a new licence or variation to an existing one,” said Bell.

“TCs want to support industry and offer a more efficient and speedier service to compliant applicants and operators.”

Bell said she wanted to introduce changes that would see genuine, compliant applications granted in three weeks instead of nine, while taking strong action quickly against “errant operators”.

“We need to be properly funded to do this,” she said, adding that the current income from the operator licensing scheme meant the TCs were “limited in the efficiency targets that we can deliver”.

Currently the cost of an O-licence for a goods vehicle operator is £658, with a £401 continuation fee payable every five years. PSV operators pay less at £209, with no regular continuation fee – although additional funds are recouped for such fleets as part of the annual test fee.

“When we see that the combined pre-tax profit of the 25 largest third party logistics operators is £975,594,342 and the combined pre tax profit of four of the biggest bus and coach companies is £335,700,000, we wonder if the current licence fees are still set at the right level,” Bell continued.

“Similarly, we question whether a ‘one size fits all’ licence fee is still appropriate. The logistics and transport industry is diverse in its type, scale and size of operation. Nearly three quarters of goods and PSV licences are held by operators who operate up to five vehicles and one quarter are held by operators who operate between six and fifty vehicles.

“It is also worth noting that nearly a third of all vehicles operated are done so by operators with more than fifty vehicles.”

In a direct appeal to the transport secretary Chris Grayling, to whom the annual report is addressed, she said that “changes to the law are needed if government is to remove some of the barriers that prevent us from granting licences more quickly”.

“We cannot offer a better service without fee reform and law reform, and so we hope that you will give them very serious consideration,” Bell added.