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27th October 1988
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Page 5, 27th October 1988 — )-Licence cash row
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Which of the following most accurately describes the problem?

I The EEC's Economic and icial Committee has attacked e European Commission's m to force hauliers to prole hefty financial guarantees -ten applying for an 0-licence 111 6-12 October).

The committee says the oposal, under which hauliers 11 have to give guarantees atal to 10% of the value of eir fleets, is "vague" as it )es not specify how guaranes are to be established and ies not cater for operators ho lease vehicles.

Even the definition of 10% is 'clear, says the cornittee. It add mean the cost of replaceent, or the non-adjusted trchase price.

"The danger of this kind of aissez faire" approach is that ide discrepancies in applicam could emasculate the prop;ed measure," warns the immittee. "It is not sufficient ) fix a financial guarantee, no atter what form it takes. A healthy balance should be established between the financial guarantees required and the firm's obligations, especially commitments to banks. Apart from financial guarantees, provision should be made for monitoring a firm's financial situation in general," it says.

The proposal also aims to achieve uniformity in the criteria for "good repute". The objection stems from the commission's failure to distinguish between minor offences and serious, repeated offences.

The committee supports the introduction of minimum professional standards for the transport industry, but argues that the plan does not go far enough.

"Other professions require a certificate of ability or even a professional diploma as evidence of professional competence. Surely this should also be the case for transport operators," it says.

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Organisations: European Commission

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