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On the road to recovery

5th April 2007, Page 36
5th April 2007
Page 36
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Page 36, 5th April 2007 — On the road to recovery
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Which of the following most accurately describes the problem?

Keywords : Trucks, Vehicle Recovery

Recovery charges can be confusing for hauliers ]rid recovery operators. But, as Adam Hill 'inds out, a new set of charges due as soon as lanuary 2008 vvill daffy what should be paid.

For recovery operators with police contracts, the issue of statutory fees has become a thorny one. The current charges or removal, storage and disposal of vehicles hat are illegally, dangerously or obstructively larked, broken down, or abandoned have been he same since 1993:£105 for removal, £12 per lay for storage and £50 for disposal.

Gary Satchwell, chief executive of the k.ssociation of Vehicle Recovery Operators AVRO). says the majority of insurance ompanies use common sense when assessing he cost of an incident claim. -Insurers vould see £105 as not fair and reasonable if a 4-tonner was straddled across two lanes of the ighway, half unloaded on the road," he says. Do you think a recovery operator is going to 'arm up his engine to do that,when realistically ; could cost £12,000-15,000?"

A few cases show that the statutory fee eaves recovery operators with less financial • rotection than they want. In a recent ruling, ,TYK logistics was adjudged correct to refuse £9,500 bill from the Mansfield Group for ecovering its vehicle following an accident CM 15 June 2006).

The judge ruled that operators must invoice only statutory charges and it was the police to vhom contractors should look for settlement. ,IYK's solicitor argued that unless a verbal ontract is established between the recovery iperator and the vehicle owners,only statutory harges should be paid.

Regardless of the rights and wrongs of that ase, its very existence suggests potentially damaging confusion. In theory at least, it could cost the same to recover a 3.5-tonner from the hard shoulder where it has broken down as it would to remove the 44-tonner in the above example.

"It's an untenable situation," says Mark McAllister, managing partner at McAllister Recovery. "Hauliers don't know where they stand because you've got £105 plus this openended fee.They can say 'we're just paying £105'. Legally, they're right; morally they're not."

Formal consultation The Road Haulage Association Rescue and Recovery Group (RHA RRG) is keen to remove the shades of grey from legislation, while upping the statutory fee itself. Last November it led a delegation to the Home Office to express concern that there was little or no progress on the £105 problem.The government is now in the process of launching a formal consultation on the issue. This will include a review, supported by the Highways Agency and the Department for Transport, of statutory charges.

The RHA RRG was invited to submit a schedule of charges to reflect a fair and justified rate for the work involved.

At another meeting last month of the Home Office, police, recovery operators, hauliers and insurers, several options were considered: • Charges to include a time factor • Menu pricing • Distinction between removals and recoveries with statutory charges applying only to removals • Infinitely upward variable charges to be negotiated between parties • Recovery charges being restricted to certain types of vehicles • Different recovery charges for different categories of vehicles • Scenarios based on vehicle type, condition and location The RHA RRG is now in discussion with PA Consulting, which is preparing a consultation document on behalf of the Home Office. Meanwhile the Home Office is considering a system of statutory charges based on scenarios according to vehicle type ([or example, by weight), condition (damaged, overturned, load shed and so on) and location (on or off the carriageway).

It also proposes to increase statutory charges annually in line with inflation and to conduct a review every three years. The RI IA RRG hopes new arrangements could come in as early as January 2008.

McAllister insists:"I'd love to be able to say to Commercial Motor these are the rates [for each situation]'." Satchwell also welcomes the idea. "We'd suggest menu pricing with agreement from the industry." he says. "Attached to tha would be a strong arbitration committee tc counteract overcharging — which can, has am will happen."

Since neither the police nor the lire brigadi has the equipment to put an overturned vehich upright, recovery operators form, in effect a privately-funded emergency service. The! certainly play a vital role in keeping traffii moving, although drivers' hours restriction: about to come in might put a brake on ail: (see panel).

But menu pricing, at least, should benefi everyone. In particular, hauliers who mutte about the 'Dick Turpins of the recover, industry will welcome transparent informa hot on exactly what they can expect to pay in an, given scenario. •


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