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Proof of the pudding...
There's a time bomb ticking away under the industry—and it's due to go off in October 2001. The forthcoming minimum financial requirements for 0-licensing should send a tingle down the spine of every operator in the country Why? Because, with a few notable exceptions, we doubt whether many hauliers will actually be able to metaphorically stump up the cash. If you were asked to prove you had f6,000 in the bank for your first vehicle, and £3,300 for every other wagon in the fleet, could you do it? And don't forget, this requirement is based on your margin, not the number of vehides actually in possession.
Of course, if you behave you may not have to prove your financial wherewithal (other than at your licence review). But step out of line and you could be in for a shock when the Traffic Commissioner says: "1 want you to show me that you have the necessary amount per vehicle in place—and I want it in writing within the next four weeks."
All those operators who've complained about how easy it is to get into the industry should consider this: the rules won't just affect newcomers; they'll apply to every one of the UK's 65,300 0-licence holders in two years' time.
It might just weed out those companies that have no assets and lease everything and live from hand-to-mouth every day. But don't assume we're only talking about owner-drivers here. The rules may even succeed where the freemarket has failed, by ensuring that hauliers run a proper business, with proper reserves. And that means making proper profits. if that doesn't include you, what are your plans for the future?