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LOOKING AT LEGISLATION

7th September 1985
Page 61
Page 61, 7th September 1985 — LOOKING AT LEGISLATION
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Which of the following most accurately describes the problem?

ADE PLATES NIDER :RUITNY

IX MONTHS or so, when the Budget is unveiled, attention in transport circles will, as always, be ntrated on changes in vehicle e duty and fuel tax. Not even the ms men in the deepest cellars of the sury and the Department of sport will yet have started on led planning of these.

It next year a smaller group of itors, untroubled by normal VED , will also be looking with special ast for other changes.

is is the select group which ites on trade plates.

le objectives of this system are ed by the Department of' Transport o provide motor traders, vehicle rs and manufacturers of tonically propelled vehicles with the ty for using unlicensed and in some unregistered vehicles in the course eir business, in circumstances in h it would be unreasonable to [re them to go through the normal f.cliare of licensing and registration." cc a lot of other transport lotion, that on trade plates has been ted piecemeal over the years and is in a mess. The DTp, having got ial VED on to a more rational , is now looking at tidying up this r corner of vehicle taxation law; A Lssion paper in June 1983 was wed by a consultation paper just a year ago. This set out the trtment's plans following altation. It was clear from this that lbjectives remain unchanged, but 'a per proposed that the restrictions vailability and use should be eased number of ways.

ae of the major uncertainties of the ing law has centred on the ition of those entitled to use trade s. The DTp wants to extend the "motor trader" to include those fit accessories to new unregistered :les and to valeting. It is also ired to regard the repair, tenance and acquisition branches of fleet operators as motor traders provided that they are clearly separate from such firms' other activities.

Vehicle manufacturers are currently limited to using trade plates for research and development in their own business. When the changes are implemented they will also be allowed to use them to test other manufacturers' vehicles. No changes are proposed in the definition of "vehicle tester", but the term "temporary possession" would be defined in some detail.

The restrictions on the carriage of goods would also be eased. At present any load which is not part of the vehicle or permanently attached to it, or designed for that purpose, has to be returned to the place of loading without having been removed (except in case of an accident). This will be eased to allow water spraying, muck spreading (will that term get into an Act of Parliament, I wonder?) and refuse collection and disposal to be considered non-returnable loads. And a car delivery driver will be allowed to carry "some alternative form of transport for his own use on the other leg of the journey", though it will have to be appropriately taxed.

RESTR1CTIONS on the carriage of passengers will also be simplified, though not significantly extended. It will still be illegal to carry a passenger for hire or reward.

The consultation paper also holds out hope for two other minor easements, though it stops short of promising them. One is the replacement of the present fixed quarterly expiry dates by a 12-monthly licence running from that start of the month of issue. This is dependent on the computerisation of trade licences, which will have to await Swansea's new computers being brought into full use. However, the proposal also envisages no refunds of duty paid in the vent of early surrender.

The DTp also hopes to overcome problems which have arisen over the display of trade licences on some vehicles, though it does not sound very optimistic. And it says, using surprisingly tentative terms, that "it seems unlikely that it will be possible to allow vehicles displaying trade plates to be parked on the highway".

Not all the changes envisaged are relaxations. Recovery vehicles would be excluded, since "their usage no longer seems infrequent — indeed, some seem to be in constant use". They would have to be registered and licensed, though at the concessionary rate applicable to nonplateable and Special Types vehicles. At present this is £130 a year, though recovery vehicles not exceeding 1,525 kg unladen would pay the private car rate; trade plates are only £46 a year.

It also seems likely that applications for a trade licence will be more closely scrutinised than in the past. In particular the DTp is considering giving the Secretary of State for Transport power to refuse an application "if he believes that the applicant is not a suitable person to hold a trade licence".

The suggested criteria would include misuse of a trade licence and convictions for vehicle excise offences. It will also be necessary for applicants to produce a certificate of insurance against all thirdparty risks.

Timing could be a snag. The changes will probably be made in a Finance Bill. And the contents of such Bills are controlled by the Treasury, which is always reluctant to clutter them up with other Departments' bits and pieces. However, the motor trade contains many small firms. So the Task Force recently set up by the then Minister without Portfolio Lord Young to reduce the bureaucratic burden on such firms might be expected to press for legislative space and time.

Another incentive for the Treasury to co-operate is the hint in the paper that the rate of duty payable by trade plate holders might be brought into line with the concessionary rate paid by nonplateable vehicles. Although the total sum is not large it is on the right side of the account.

Opinions among those affected by the changes will no doubt vary according to the effect they have on their pockets. But there can be no complaints about the consultative process which the DTp has set in motion. Why, I wonder, cannot this be applied to the much more important questions of lorry taxation as a whole?

by Keith Vincent

Tags

Organisations: Task Force