FINANCIAL STANDING INCREASE
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The changes to financial standing requirements, which were made at the start of this year, have not been welcomed with open arms.
The need for third-party operators to increase the minimum amount of ready cash available per truck by 25% was brought about by the weakness of the pound against the euro.
Overall, 49% of respondents said that the government should review the changes, while 25% took the opposite view, with the remainder unsure.
Operators in some of the worst-hit industrial sectors are the most offended by the changes: 61% of hauliers serving the manufacturing industry want the changes reviewed, a view echoed by 58% of construction hauliers.
As ever, the verbatim responses are illuminating: • "Surely the point of any kind of standing is to
ensure that the trucks are kept in a roadworthy condition; this being the case, the proof is in your VOSA records with the local test centre, not a bank."
• "I fully agree to an increase to keep rogue operators out of the industry, but 25% is excessive considering the starting base."
• "I have just got my 0-licence and was hoping to use the cash to fund the vehicles, but I have had to go elsewhere for funding as I need to leave [the cash] in the bank."
• "It could be the final straw for competent businesses that, due to the economic situation, are running close to the edge."
• "It is not in the interests of any business to create and maintain the kind of cash reserves required by the rules. Cash should be put to use."
Furthermore, an observation made by many respondents was what happens to financialstanding cash when a firm collapses: • "How come when [a firm goes] bust there isn't a penny left anywhere from the monies that should have been supporting the 0-licence?"
This concern led one respondent to suggest that financial standing monies should be held as a bond.
But not everyone is unhappy with the changes:
• "Raising the threshold to enter the industry will deter the cowboys and those on the financial borderline, thus [stopping them] from undercutting."
• "Any tool that can be used to put the professionalism back into our industry is to be welcomed."
• "We are being hit by firms with no financial standing, so the harder it is to get an 0-licence, the better."
• "If you can't afford to do it, then you should not be trying."