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0-licence applications slump to a 10-year low
Page 6
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CM COVER STORY
THE NUMBER of new 0-licence applications made to VOSA is at its lowest level for the last 10 years, thanks to a toxic mixture of fuel costs, inflation-busting fees and crippling margins.
Figures released by the government enforcement agency in a Freedom of Information request show that applications for 0-licences fell to 476 in February, down 28% on the same month last year. There were 458 applications in March, 27% fewer than in March 2008.
For the first four months of 2008, the number of operators applying for licences averaged almost 620. For the last four months to March 2009, that figure had fallen to 471.
But the gradual decline in licence applications has been a trend for some time. The Freight Transport Association's head of road freight policy, Joan Williams, says: If you look back over the years the Traffic Commissioners have reported a decline in applications received.
"It's all the added pressure: VOSA fees, annual tests, DSA fees hiking well beyond inflation. [The cost of] 0-licences themselves has gone up by more than 5% this year. The government is not helping."
The Road Haulage Association describes the latest figures as "concerning" and says they reflect an industry perception.
Policy director Jack Semple adds: "We reckon about half of the new applicants are businesses completely new to running trucks, as opposed to modifications. That's 3% of the total number of 0-licence holders. That's a reflection of the way the industry is seen to develop a business, and even work. It's not attractive at the moment."
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