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Holding cornpany licences
Page 30
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• The Freight Transport Association has further clarified the situation surrounding holding companies, subsidiaries and the switch from carriers to operators' licensing. Apparently some companies have been under the impression that they mist take out a C licence in every traffic area in which they operate vehicles, in order to qualify for the transitional provisions of the transfer to '0' licences. This is not so.
The last three paragraphs of a news item in last week's issue of CM (page 20). which was otherwise correct, have added weight to this confusion; for this we apologize.
The true situation, says the FTA, is as follows:—
Subsidiary companies who do not currently hold a carrier's licence should obtain a carrier's licence in their own name before the relevant transfer date if they wish to obtain their own O licence(s) under the transitional procedure.
They do not need to take out a carrier's licence in each traffic area. The position is adequately covered if one carrier's licence is obtained, provided that the licence covers at least one vehicle which will be transferred to each of the required 0 licences. In other words, an own-account subsidiary company with depots in, say, five traffic areas must obtain a C licence covering at least five vehicles so that there is at least one vehicle available for transfer from the C licence to each 0 licence.
Holding companies (or national companies) which wish to hold 0 licences in their own
name, and which already hold a carrier's licence, will be able to take advantage of the transitional provisions by making 0-licence applications to the LAs for the traffic areas in which they wish to operate vehicles on 0 licence (as explained in CM last week).
The simple test of whether transitional provisions will apply is to ask: "Do we hold a carrier's licence in our company name?" and "Are there enough vehicles on that licence or licences to correspond with the number of traffic areas in which we want operators' licences?" If the answer to both questions is "yes", then the transitional provisions will apply.