cropper's column Too easy for new entrants
Page 51
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• It's too easy for newcomers to enter road haulage and LAs should be stricter on issuing them with licences — this is a view frequently expressed by existing operators. To what degree, in fact, can the LAs control this situation? The position is this: they are there to administer an Act of Parliament, and can go no further than the Act allows.
For shortcomings by licence holders, where the LA can specifically survey their activities, he has frightening powers to suspend or revoke, as some operators are unpleasantly discovering. But towards newcomers, under all the headings in the Act, the LAs' powers prove pretty chimeric. The LA can rarely refuse anyone on the score of past misdemeanours; the newcomer has not been in the industry and has no history in this sense. It is relatively easy for the newcomer to make inspection and maintenance promises; the LA has little alternative but to accept.
There is a third point: the LA has to be satisified that the maintenance of the vehicle will not be prejudiced by lack of finance. In a certain sense this appears a more substantial point. Existing operators will appreciate how easy it is to fall by the wayside in road transport.
Financial backing
Most LAs seem to be easing to the situation where they become satisfied by some simple statement, unsupported by documentation, by the applicant that some degree of finance is available. In the early days, some LAs would show some interest in the likely availability of work for the vehicle which would result in continuing finance for the future; but this line of investigation has since been abandoned. This lightness of treatment seems to stand in contrast to the attitude towards existing operators, in the few cases which have so far arisen: financial documents have been required, in particular the annual accounts which have been scrutinized and quizzed.
Thus the third point proves to be pretty insubstantial also. As a matter of law, it is difficult to see how this can be altered; the RHA has tried on one or two occasions without making much progress. Economics are not susceptible to being judged under a legal system. It remains a major and unresolved problem of the industry as to how to educate the unending surge of newcomers. Few of them read CM, even less seek consultancy advice, so sad is the situation. They insist upon learning for themselves in the harsh world of economics and competition.
Ralph Cropper