Hi er financial thresholds could kill off many hauliers
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iu by Miles Brignall Hundreds of struggling hauliers face losing their Operator's Licences from October 2001 when higher financial thresholds come into force. According to Eastern Traffic Commissioner Geoffrey Simms, thousands of hauliers are in for a nasty shock when they realise how much ready cash they will be required to show, in order to prove they are of good financial standing.
Any haulier who fails to do so will have his licence revoked, Simms adds.
From October this year all new hauliers will have to show they have access to around £6,000 for their first truck, and £3,300 for all subsequent vehicles. The current requirement of £2,500 for the first truck already gives some operators problems, says Simms.
Under the new rules a haulier with 10 vehicles will have to show he has ready access to more than £35,000.
Speaking at the Road Haulage Association's International Group meeting held last weekend, Simms warned operators that the new limits are set have a far greater impact on the industry than the current obsession with flagging out.
"Operators appearing at Public Inquiries are already having difficulties demonstrating they have the finances available to run their business, and the new limits will only lead to more revocations," he said. "The problem is exacerbated by the fact that operators will have to show they have funds for all the vehicles specified on the licence, regardless of the number actually being operated." Simms pointed out that there will no longer be a scale of financial requirements for various types of vehicle. In future the operator of a 7.5-tonne truck will need access to the same funds as someone licensing a 38-tonner.
The changes affect all existing operators from October 2001; but any hauliers varying their licences before that date will have to show access to the higher amounts. • The question of what constitutes "access to money" was defined by the Transport Tribunal in the case ofJJ Adams in 1093. An operator has to show he has access to the prescribed amount or assets that can be easily converted into cash without affecting the running of the business. For example, he cannot claim he could sell a truck.
Senior TC Michael Betts agrees the changes will have a major impact; he says all operators will face five-yearly financial reviews after October 2001. But he adds: "If a haulier is called to a public inquiry to examine his disciplinary record we will more than likely ask to see evidence of his financial standing."