Multi-purpose Vehicles Cause Problems
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THE ever-increasing range of vehicles constructed to permit their use for various purposes has created problems for prospective operators. Particularly is this the case with the layman whose only previous experience has been as the owner of a private car and who has no knowledge of either licensing laws or construction and use regulations.
Although this aspect of vehicle operation was dealt with as recently as June 20, there would seem to be no limit to the slight variation in each individual case, As an alternative to the usual query as to the legal position once a private car is exchanged for a utility vehicle, a reader now says he is contemplating buying one of the popular 12-seat passenger vehicles, which he intends to use daily in his work. .
This entails carrying a certain amount of professional gear, such as protective clothing and rubber boots. He asks whether such a 12-seater has to comply with regulations for estate cars, goods vehicles or passenger vehicles, What tax is payable and what speed limit, if any, applies.
• Used for Trade
The question of classification for taxation purposes is One of fact: it depends upon whether the vehicle is constructed or Can be adapted for the conveyance of goods or burden. If, as is to be assumed, the proposed vehicle is constructed for the carriage of passengers but is also adaptable, by folding the seats, for the carriage of goods or burden, it would be taxable, under Section 7(2) of the Finance Act, 1952, as a goods vehicle if it were used for the conveyance of goods or burden for hire or reward or in connection with any trade or business. The use of such a vehicle in the way the reader proposes would be regarded as for or in connection with a trade or business.
A vehicle constructed or adapted for the carriage of goods arid used on a road to carry goods for hire or reward or in connection with a trade or business, requires a carrier's licence. There is, however, an exemption in the Road and Rail Traffic Act (Exemption) Regulations, 1957, from the need for such a licence when using a dual-purpose vehicle to convey tools, apparatus, materials or any other requisites, for the use of either the driver or any passenger.
Unlike matters relative to the construction of the vehicle, which are determined on fact, the question whether this exemption applies in individual cases can legally be determined only by the courts. It would. appear, however, that it might apply in this case if the vehicle complies with the conditions as to construction laid down in the schedule to the regulations.
Regarding speed limit, •this, of course, is governed by .the Motor Vehicles (Variation of Speed Limit) Regulations, 1956, and vehicles adapted to carry more tharr seven passengers, exchiding the driver, as well as all goods vehicles, are restricted to 30 m.p.h. at all times when not drawing a trailer. The
AQUERY which permits a shorter answer relates to the towing of a trailer behind an estate car. The reader asks whether this could be done while the car was licensed as " private only " at the usual annual rate of £12 -Ws. without any additional tax for the trailer, as would be necessary if it were towed behind a commercial 'vehicle.
The short answer is that if a dual-purpo-:e vehicle draws a trailer for the carriage of goods, extra tax is payable. It was held in the Divisional Court (James v, Davies, October 21, 1952) that a Land-Rover taxed as a priVate car and used for towing a trailer carrying goods, must be licensed in accordance with Section 13 of the Vehicles (Excise) Act, 1949.
" I AM using a popular make of van, taxed goods-and-private, which is not fitted with side windows. Is this van subject to any speed limit and is it necessary to keep log sheets when the vehicle is being used privately?"
The answer to the first part of this query is that such a vehicle would he limited to a maximum speed of 30 m.p.h. at all times, which is applicable to goods vehicles of this type.
Regardiag the keeping of records for a van licensed as for goods and private use, the position is unfortunately complex. Only owner-drivers are specifically exempt from the need to • keep records, commonly known as log sheets, when using such a vehicle for purely private purposes. However, Section 16 of the Road and Rail Traffic Act, 1933, states that current records shall be kept by every person employed by the holder of the licence. It could be construed that an employee using such a vehicle for pleasure purposes—for example at the weekend—is not for that period " employed " and is not bound to keep records. Once again, however, the legality of such a construction placed upon the word " employed " could be decided only in the courts.
ADISABLED reader states that he has been running a small hire-ear service including school contracts, for some years, and is now contemplating putting into operation a 12-seat bus which he had intended taxing as private, but with adequate insurance cover. He now wonders whether it—would be legal to do this within the scope of the P.S.V. Regulations, or whether he could tax it as a private and hackney for 12 seats.
The first point to be noted is the distinction between taxation and licensing. As its name implies, taxation is solely concerned with the collection of duty, which in the case of a 12-seater of the type referred to, would be termed a hackney carriage, on which tax is payable at the rate of £12 for the first eight seats and £2 per seat in excess of that number up to 26.
Payment of this tax, however, does not in itself permit the owner to operate it as a public -service vehicle. In accordance with the Road Traffic Act, 1930, an operator must obtain a (Continued on page 861)
public service vehicle licence before using a motor vehicle as a stage, express or contract (private-hire) carriage. Moreover, such a licence would not be granted unless a certificate of fitness had been obtained, although a certificate would not have been required if the vehicle had had fewer than eight scats. The obligation to obtain a certificate for what might be termed a medium-sized passenger vehicle (between eight and 14 seats) remains despite some easement permitted under the Public Services Vehicles (Condition of Fitness) Regulations, 1958.
It would also be necessary for the driver to hold a public service vehicle driver's licence when operating a stage, express or contract service.
I RECEIVE many inquiries from men who wish to enter
haulage when they leave the Services.. A typical example recently came from the East Midlands. The inquirer said he was about to retire from the R.A.F. and was considering the purchase of a small haulage business in the Home Counties,
He had previous experience haulage, but because of his years in the Service he found mself a little out of touch with current practice.
He then gave details of the business he had in mind and the number and types of vehicle employed, together with their respective licences. He also wished to know the current value of the A and B licences and the possibility of their extension to permit larger or additional vehicles, together with the probable value of both the business and the used vehicles.
As in many instances where a reader is proposing to start from scratch in the haulage business, it is obviously not possible to give the detailed advice that could be acquired only through years of experience. Rather is it a matter of indicating the sources from which such information might he obtained.
It would be prudent to obtain the services of a qualified acconntant to examine the accounts of the haulage business under consideration. This examination, however, would be largely confined to past operations and it would be advisable simultaneously to inquire, as far as possible, into the reliability and potentialities of the sources of present traffic and the general economic trend in the area in which it is proposed to operate.
The profitability or otherwise of the whole business would be the factor of most concern to the purchaser, rather than the probable value of individual vehicles. It is surprising, incidentally, how the idea seems to stick that an A or B licence has a value in itself. Legally, of course, it has no value whatsoever.
Regarding the possibility of substituting larger vehicles, or of obtaining additional vehicles, an application would, have to be made to the Licensing Authority as though it were for an original licence. Technically, it is not legally possible to substitute a larger vehicle for a smaller one. What in fact happens is that a fresh application is made for the larger vehicle, with the promise that the licence for the smaller one will be
surrendered if the new one is granted. S.B.