Licensing Problems Elucidated
Page 53
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The 29th Article of the Series in which We Answer Typical Questions on Different Subjects Resulting from the Passing of the Road and Rail Traffic Act !
Building Up a Fleet Before Selling.
(123) QUESTION: I wish to advertise my business for sale, but find some difficulty in understanding the position with regard to licensing the vehicles owned and run by me during the basic year. The point is that they were mostly either sold or scrapped, leaving only one lorry now running out of four, but I iltend to have the tonnage replaced, so that the amount for the basic year is not lost. I presume that the new owner would have to apply for discretionary tonnage for the vehicles purchased. What is the best procedure to follow?
ANSWER: You must not replace sold or scrapped vehicles without the authority of the Traffic Commissioner. To enable you to do this, you must apply to the authority for a "variation of licence," in respect of which no fee is payable, and there can be no objection to it unless there is to be an increase in the new tonnage over that already authorized.
If the amount authorized be not equal to your basicyear tonnage and you have not applied for a "hiring allowance" or obtained authority to buy extra vehicles up to the basic-year tonnage, then the additional amount will have to be applied for as "discretionary."
You cannot sell your business and retain your right to any tonnage. The buyers must obtain licences before they can Operate the vehicles. If they already have authorized vehicles to replace they could apply for a variation of their licences, any increase, of course, being "discretionary."
The Issue of Short-term Administrative Licences.
(124) QUESTION: I have paid 10s. for a permit to run my lorries for six months. It seems to me that, after this permit has expired, I shall have to engage counsel and fight for my 21 years' good-will. Also, within a few years the lease of my present premises expires. If I cannot secure others handy I presume that I may be opposed by operators in the particular district where I propose to trade. Meanwhile, I see private cars well loaded with furniture and merchandise and running, apparently, without restriction, whilst a lorry is subjected to all classes of regulation.
ANSWER: It should not be necessary for you to engage counsel to fight for your good-will once you have been granted a short-term administrative licence. This class of licence is issued to enable the authorities to spread their work over a period. It will not prejudice you in the future, and you will be on the same basis as a fullterm licence holder.
If your licence be a Class A you will not, at any time, be restricted to operating in any particular district or in rgspect of any particular class of load, and once such a licence has been granted objections would hardly be considered unless it can be shown that you have not followed the requirements of the Act in other respects, such as in the condition of your vehicles and in regard to operating at uneconomic rates.
The use of private cars for the carriage of goods is permitted only if the vehicles are not specially adapted or materially altered for this purpose. The fitting of shelves, hooks, etc., may be considered as an adaptation sufficient to demand a carrier's licence.
Overcoming a Difficulty with a Class C Licence.
(125) QUESTION: Will you inform us if it be legal, when operating under a Class C licence, occasionally to collect our own goods from the mills and be paid tonnage for this work?
ANSWER: In the ordinary way, this would not be legal, because under this licence you must not carry for hire or reward, which you would, in effect, be doing, but there would appear to be nothing to prevent you from being quoted a price at the mills. You would then be entitled to collect your own goods. A case of this kind is really merely a question of accountancy methods.
Some Pointers on Contract Tonnage.
• (126) QUESTION: I have been an owner-driver since 1926, running various makes of lorry. For some time I have been hiring out a 30-cwt. vehicle to a large concern of haulage contractors which carries solely sand, ballast and building materials. I find that it will not pay me to -run a 30-cwt. vehicle, so propose to buy one of 50-cwt. capacity.
I have hadsa talk with the concern for which I contract and it is prepared to give me work for at least 12 months, but is rather disinclined to sign a contract, which would mean that I could not claim " contract " tonnage. • What would be my position if the concern with which I was contracting ceased business? Would I have to apply for another licence because that for " contract " tonnage had become inoperative?
If the concern does not give me a contract, but can guarantee regular work, would my application for a licence be likely to be refused?
ANSWER: It would be of no great advantage to you to sign a contract with the concern, because the Act contains a proviso to the effect that a contract must be made with some person, other than a haulier, for the transport of that person's goods; so that, according to the regulations, " contract " tonnage will not apply where the person with whom the contract is made does not transport his own goods. In other words, a contract is not a contract within the meaning of the Act if it be made with another haulier.
In any case, where " contract " tonnage can legitimately be claimed, the licence would automatically become void if the particular work for which the contract. was made was stopped, and another licence would have to be applied for.
You would, of course, have to apply for a Class A. licence in respect of " contract " tonnage, and it would improve your case if you could show promises of fairly constant employment for your vehicle.