Brussels wants bac
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f,uarantees
• Hauliers face a new 0licence requirement, demanding that they provide a bank guarantee equal to 10% of th( replacement price of every vehicle in their fleet.
A plan being discussed by the European Commission in Brussels would force HGV an PSV operators to give these new financial guarantees as part of a pan-European drive squeeze cowboy hauliers out business. Tougher financial criteria will help "maintain sta bility in the transport market'' says the Commission.
"We want to keep out the fly-by-night operator who undercuts everybody," an EE official told Commercial Motor this week. "We want to ensui that they have enough money to pay their staff properly and to maintain their vehicles to the required standard."
Commercial Motor understands that the EEC Economi and Social Committee dislikes the plan, and that it supports suggestion that governments should be allowed to reduce the 10% bond in certain cases to protect small firms. The proposal suggests that any such concessions will have to be cleared in Brussels.
The Commission has been keen to find a common European 0-licence system for some time, which will satisfy both the highly restricted We German hauliers and the deregulated British hauliers. Bel In transport firms already .ve to provide financial arantees of about £7,500 a och and £3,750 5 lorry. The Commission is keen to ress that: "We are not deanding money up front. A Lnk guarantee will do." This a sop to most of the Cornunity's national governments hich have already indicated at they think the 10% relirement is too high.
The International Road ransport Union ([RU) has elcomed the idea, but has utlked at the way it might work in detail. Dutch hauliers, for instance, think that the idea should only he applied to new companies trying to enter the profession, while the Commission wants it to apply to established hauliers too.
The IRU says it also fears that interest charges on any guarantees would force up overheads. A British haulier running 25 artics, for instance, would have to ask his bank manager to give him a £100,000 guarantee.
Our current 0-licence requirement says that firms must satisfy the Licensing Authority that they have "adequate" financial resources to keep their vehicles in a fit and serviceable condition and to provide a suitable operating centre. Bank references, statements of assets and audited accounts are often given to LAs but this is too "laissez faire" for the Eurocrats.
The RI-IA welcomes the plan: "Anything which will raise and maintain the level of professionalism in the industry has to be a good thing."
The Council of Transport Ministers is expected to debate the plan in December.