Lowe’s Transport Manager’s & Operator’s Handbook … · Chart Analysis 145 Digital...

CONTENTS

Biographical Notes xviiiAcknowledgements xxPreface to the 46th Edition xxi

Introduction 1

01 Goods Vehicle Operator Licensing 7

Administration of Licensing System 8The Operator Licensing Self-Service System 9‘O’ Licences Not for Sale 10Exemptions from ‘O’ Licensing 10The Vehicle User 13Rental of Vehicles 15Hire and Contract Hire 16Leasing 17Restricted and Standard ‘O’ Licences 17Requirements for ‘O’ Licensing 18Licence Application 27The TC’s Considerations 38Additional Vehicles 47Licence Variation 49Transfer of Vehicles 50Notifi cation of Changes 51Subsidiary Companies 51Temporary Derogation 52Production of ‘O’ Licences 52TCs’ Powers of Review 53Penalties against ‘O’ Licences 53The Upper Transport Tribunal 57Northern Ireland Licensing 61Use of Light Goods Vehicles 63Foreign Vehicles in the UK 63Impounding of Trucks 64

02 Professional Competence 65

Who May Become Professionally Competent? 67Proof of Professional Competence 67Classes of Competence 68Qualifi cations for Professional Competence 68

Lowe’s Transport Manager’s & Operator’s Handbook_Revised6.indb 7 1/11/2016 3:18:18 PM

Copyright Material. Not for Reproduction.

viii Contents

Examinations – post March 2012 71Transfer of Qualifications 79Good Repute 80The Driver CPC 82Minimum Training and Qualification Requirements 88

03 Goods Vehicle Drivers’ Hours and Working Time 92

EU Driving and Rest Time Rules 92Enforcement and Penalties 92Reporting of Illegal Operations 93Which Rules Apply? 94European Union Rules 94British Domestic Rules 104Mixed EU and British Driving 107AETR Rules 107Working Time 108The Road Transport Directive (RTD) 108The National Minimum Wage 113Self-Employment 114Tax Relief on Driver Allowances 115

04 Goods Vehicle Drivers’ Records 117

Exemptions from Record Keeping 118Record Books 118

05 Tachographs – Fitment and Use Requirements 122

Introduction of Digital Tachographs 123Legal Requirements for Analogue Tachographs 124Exemptions 125Employers’ Responsibilities 128Drivers’ Responsibilities 129Tachograph Calibration, Sealing and Inspection 131Tachograph Breakdown 134Use of Tachographs 134Offences 140The Analogue Tachograph Instrument 141Chart Analysis 145Digital Tachographs 146Typical Digital Equipment 156Production of Digital Records 156

06 Driver Licensing and Licence Penalties 161

Driver Licensing 161Driving Licences 164Vehicle Categories/Groups for Driver Licensing 168



ixContents

Application for Licences and Vocational Entitlements 174Medical Requirements for Vocational Entitlements 176Licence Fees and Validity 184Production of Driving Licences 186International Driving Permits 187Exchange of Driving Licences 187Driving Licence Penalty Points and Disqualification 189

07 Driver Testing and Training 203

Driving Tests 203Driver Training 219Transport Training 221

08 Vehicle Registration, HGV Road User Levy, Excise Duty and Trade Licences 223

Vehicle Registration 223HGV Road User Levy 226Vehicle Excise Licences 230Trade Licences 252Recovery Vehicles 255Rebated Heavy Oil 257Oil Storage 259

09 Insurance (Vehicles and Goods in Transit) and Conditions of Carriage 260

Motor Vehicle Insurance 260Fleet Insurance 265Additional Insurance Cover 266Goods in Transit Insurance 268Conditions of Carriage 271Security 273

10 Road Traffic Law 275

Speed Limits 276Lighting-Up Time 280Stopping, Loading and Unloading 281Tramways 282Motorway Driving 283Hazard Warning Flashers 287Temporary Obstruction Signs 287Lights During Daytime 288Parking 288Lorry Road User Charging 289Lorry Routes and Controls 289



x Contents

London Safer Lorry Scheme 294Bus Lanes 294Level Crossings 294Level and Tram Crossings 295Weight-Restricted Roads and Bridges 295Owner Liability 296Fixed Penalties 296Civil Enforcement Officers 301Pedestrian Crossings 301Builders’ Skips 301Abandoned Motor Vehicles 302Retention and Disposal of Seized Vehicles 302Wheel Clamps 303Overloaded Vehicles 303Road Traffic Accident Procedure 304Road Humps – Traffic Calming 304Sale of Unroadworthy Vehicles 305Seat Belts 305Stowaways 308Use of Radios and Telephones in Vehicles 312Traffic and Weather Reports 313Smuggling 314Road Safety Act 2006 315

11 Goods Vehicle Dimensions and Weights 317

Definitions 318Length 318Width 324Height 325Authorized Weight Regulations 327ISO Container Dimensions and Weights 332Weight Offences 332

12 Construction and Use of Vehicles 337

Definitions of Vehicles 337International Vehicle Classifications 338Constructional and Maintenance Requirements 339Use of Vehicles 372Trailer and Semi-Trailer Coupling and Uncoupling 375Type Approval 376Vehicles Covered 376Responsibility for Compliance 378Responsibility for Type Approval 379The Standards Checked 379Arrangements for First Licensing of Vehicles 379Alteration to Vehicles 380



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13 Vehicle Lighting and Marking 381

Obligatory Lights 381Side Marker Lamps 386End-Outline Marker Lamps 387Lighting Switches 387Visibility of Lights and Reflectors 387Lights on Projecting Loads 387Direction Indicators 387Optional Lamps 388Warning Beacons 389Swivelling Spotlights (Work Lamps) 390Rear Retro-Reflectors 390Side Retro-Reflectors 390Front Retro-Reflectors 391Vehicle Markings 391

14 Goods Vehicle Plating, Annual Testing and Vehicle Inspections 402

Annual Testing 402Plating of Goods Vehicles and Trailers 416Enforcement Checks on Vehicles 423Inspection Notices and Prohibitions 429Light Vehicle Testing 432Northern Ireland Certification of Vehicles 432

15 Light Vehicle (MoT) Testing 437

Vehicle Classes 439The Test 440Production of Test Certificates 444Vehicle Defect Rectification Schemes 445

16 Vehicle Maintenance and Maintenance Records 446

Maintenance Advice 447The Choice: To Repair or Contract Out 448Maintenance Contracts 450In-House Repairs 453Vehicle Inspections 454Vehicle Servicing 456Cleaning of Vehicles 456Enforcement of Maintenance Standards 457Maintenance Records 457Driver Reports of Vehicle Faults 457Inspection Reports 458Defect Repair Sheets 459



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Service Records 459Wall Planning Charts 460Vehicle History Files 461

17 Safety – Vehicle, Loads and at Work 462

C&U Requirements 462The Safety of Loads on Vehicles 463Distribution of Loads 464Road Safety 466Safety Report 467Health and Safety at Work 470The COSHH Regulations 2002 479The Reporting of Injuries, Diseases, and Dangerous Occurrences

(RIDDOR) 480Electric Storage Batteries 485Risk Management 488Fire Safety 489First Aid 491Safety Signs 494Vehicle Reversing 495Safe Tipping 495Sheeting of Loads 496Safe Parking 496Work at Height 497Noise at Work 497Forklift Truck Safety 498Freight Container Safety Regulations 498Operation of Lorry Loaders 499Safety in Dock Premises 499

18 Loads – General, Livestock, Food, etc 501

Length and Width of Loads 501Carriage of Livestock 502Food 507Sand and Ballast Loads 509Solid Fuel Loads 510Container Carrying 510Fly-Tipping 511

19 Loads – Abnormal and Projecting 512

Abnormal Indivisible Loads 512Special Types Vehicles 513Internet Notifications for Abnormal Loads (ESDAL) 519Escorts for AILs 520



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High Loads 520Projecting Loads 521Lighting on Projecting and Long Loads 523

20 Loads – Dangerous, Explosive and Waste 524

Legislation Summary 524UK Carriage by Road Regulations 525The ADR Convention 525Definition and Classification of Dangerous Goods 526Responsibilities 532Exemptions 535Transport Information and Documentation 538Information to be Displayed on Containers, Tanks and Vehicles 540Tunnel Codes 545Emergency Procedures 546Security Provisions 548Enforcement 551Carriage of Explosives 551Radioactive Substances 552Driver Training 552Dangerous Goods Safety Advisers (DGSAs) 554Controlled and Hazardous Waste 555Packaging Waste 559

21 Fleet Car and Light Vehicle Operations 560

Excise Duty 560Insurance 561Construction and Use Regulations 565Safe Use of Mobile Phones, etc 566Drivers’ Hours and Records 567Speed Limits 569Seat Belts 570Fuel Consumption Tests 570SAFED Training for Van Drivers 572Daily Walk Around Checks for Van Drivers 573

22 Vehicle Fuel Efficiency 574

Fuel and Vehicle 574Fuel Economy Aids 576Fuel and Tyres 577Fuel and the Driver 577Fuel and Fleet Management 578Fuel Economy Checklist 580Energy Efficiency Best Practice Programme 581



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Freight Best Practice 582Reducing Fuel Bills 582Gas-Powered Heavy Trucks 584Low-Sulphur Diesel 584Biodiesel 584Electricity and Other Options 585

23 Mobile Communications and Information Technology in Transport 586

Safety 587Satellite-Based Communications Systems 587Information Technology in Transport 588HM Revenue & Customs 589Computerization in Transport 589Intelligent Transport Systems 590Teleroute 590The Data Protection Act 1998 (as amended) 591Freedom of Information Act 2000 593

24 Transport and the Environment 594

Energy Savings Opportunity Scheme (ESOS) 595Impact of Transport 596Possible Solutions 597Natural Gas Vehicles 599Electric Vehicles 599Dual Fuel and Other Vehicles 600Reverse Logistics 600Cooperative Initiatives 600

25 Business Management in Transport 601

Quality Management 601Quality Assessment and Accreditation 602Establishing a Quality System 603Quality Procedures Manual 605Other Documentation 607Training to Achieve Quality Standards 607Monitoring of Quality Standards 610Further Information 610Debt Collection 611Insolvency 611The Competition Act 613



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26 International Haulage 615

Transport Implications 615Entry to the International Road Haulage Market 616Community Authorization 616Road Haulage Cabotage 619Road Haulage Permits 621International Carriage of Goods by Road – CMR 624Customs Procedures and Documentation 632The TIR Convention 636The ADR Agreement 639Carnets de Passage en Douane 639ATA Carnets 640‘De Suivi’ Document 640Road Tolls 641European Lorry Bans 644Environmental Plaques on Heavy Lorries 644Miscellaneous Requirements 646

27 Intermodal Freight Transport 651

Appendices

I The Traffic Area Network (TAN) 660II Transport Trade Associations and Professional Bodies 664III Other Organizations Connected with Transport and Transport Journals 669IV Driver and Vehicle Standards Agency (DVSA) Weighbridges 673V Authorities and Police Forces (for Notification of Abnormal Load

Movements) 675VI UK Bridge, Tunnel and Toll Road Tolls 696VII Dimensions, Weights and Capacities for ISO Containers (Imperial and

Metric Units) 701VIII Permissible Maximum Vehicle Dimensions in Europe 704IX Permissible Maximum Vehicle Weights in Europe (Tonnes) 706

Further Information 709Index 711



PREFACE TO THE 46TH EDITION

Never before, in the 45-year history of this Handbook, have I been able to tell readers that they can look forward to less legislation in future rather than more,

as has always been the case in the past. But this was the promise of the coalition government in May 2011 when it launched its ‘Red Tape Challenge’ aimed at reduc-ing bureaucracy. However, as we will see, many of these promises are still eagerly awaited in spite of the demise of that coalition.

For information, the Red Tape Challenge indicated the intention to scrap six outdated regulations which had either lapsed or been replaced. These included the removal from the statute book of the Passenger and Goods Vehicles (Recording Equipment) Regulations 1989, which was largely defunct anyway; looking again at the Vehicle Drivers (Certifi cates of Professional Competence) Regulations 2007 to see how other countries were applying exemptions, particularly, for example, for farmers who drive stock to market; and in regard to the Community Drivers’ Hours and Recording Equipment Regulations 2007, to consult on taking up the fi nal exemption that the European rules allowed, namely, for vehicles carrying cash in secure vehicles and to introduce a limited exemption for drivers who also drive or carry out duties as volunteer Territorial Army reservists outside their employment, which has now been introduced for all Reserve Forces volunteers, in relation to weekly rest requirements.

So far as the British domestic and EU drivers’ hours law are concerned, the DfT is still promising to ‘look for ways to improve and broaden the way we raise awareness of the rules while developing with the industry ideas for a simplifi ed regime that can be raised with the European Commission in the hope of a longer-term solution’.

In the case of tachographs (ie recording equipment) the DfT says it is looking for ways to simplify their implementation ‘when the current negotiations on an EU proposal for next generation digital tachographs have fi nished’. The ‘next generation’ are expected to be introduced in 2019. With regard to other tachograph requirements, DfT has accepted the extension from 56 days to 90 days for employers to download data from a digital tachograph and made exemptions for tachograph use for some operations within 100 km of base as opposed to 50 km from base. Since I wrote the Preface to the previous edition of this Handbook in 2015, additional legislation foretold at that time has now come into force, making a signifi cant impact particularly on the rules concerning Regulation EC 561/2006, operator licensing, professional competence for drivers and transport managers, authorized speed limits for goods vehicles in the UK, and the rules related to EEC Regulation 3821/85, which was replaced by EU Regulation 165/2014 in March 2015. Looking to the future, it is still expected that the issue of European regulations and control will continue to dominate the UK transport industry, not least in relation to emission standards and the increasing levels of enforcement and inter-member state co-operation. However, in



xxii Preface to the 46th Edition

spite of increased state co-operation it does appear that some EU member states are drafting regulations and rules and increasing tolls for what seem to be purely ‘domestic’ reasons, completely independently, and this may be a trend that may need to be monitored to avoid contravention whilst operating abroad. Within the UK we must also prepare for expected changes that will alter some vehicle dimensions and many more road-charging and road-safety initiatives. However, it does appear that legislation, international, national, regional and local, focused on the environment will lead the changes we can expect in the near future and we must all try to manage what will be delivered to us.

Longer term, there are overarching efforts to switch more long-distance road freight on to rail and waterways (the aim is a 50 per cent switch by 2050) and to cut transport greenhouse gas emissions by 60 per cent by 2050, which will continue and no doubt be added to.

More recently introduced legislation saw the abolition of the VED paper disc and the paper counterpart driving licence; the introduction of drug-driving legislation; relaxations to periodic DCPC criteria, aimed at addressing driver shortages; no-smoking rules for driving vehicles in which any child under 18 years of age is being carried; and increased speed limits for some goods vehicles in England and Wales, with Scotland monitoring the situation. In addition, the ADR provisions for the carriage of dangerous goods by road have been updated to refer to the 2013 version, as indeed many other legislative items have been updated.

Economically, the situation for the industry in the year ahead is likely to be little better than the prospect that faced it at the beginning of 2015, except that we will approach a long-promised referendum on EU membership, which will need pre-planning and could lead to changes having to be introduced before the event itself.

In the meantime, many haulage firms are still struggling, others have already gone under and many others continue to be unable to see a secure long-term and sustainable future. Whilst it might seem that the lifeblood is being squeezed out of one of the country’s most vital industries at a time when it most needs help, our industry is nothing if not resilient; and although many other industries are suffering too, in order for a true recovery to be realized, a thriving and efficient road haulage industry is an integral element for successful home markets and for export and import. That said, it is a fact that the UK appears to be in a stronger position than many of its EU partners, but there is still much to do if the road freight and road passenger industries are to be able to function efficiently and effectively.

It might help if both politicians and the general public actually appreciated that very few goods move without a lorry having carried them – and these goods are not fripperies; they are vital supplies needed by people and by the commercial life of this country: food, manufacturing materials, medical supplies, goods en route to the ports for export, essential imports coming in via our container ports. OK, some of the goods may be no more important than container loads of expensive electronic toys from the Far East – but why should our children not have them? And, it must be accepted that we all benefit from new global trading patterns, not least because consumer demand and economic expansion rely on full shelves in supermarkets and raw materials and products sourced from low-cost regions around the globe.



xxiiiPreface to the 46th Edition

This new 46th edition of the Handbook has been updated with many snippets of new information – too numerous to specify here, but nevertheless indicating just what a constantly moving picture the whole business of transport law compliance really is.

Regrettably, the past year has been no easier for the hard-pressed haulier than preceding years and the unfortunate prospect at this time is that although things may have started to improve for some, many road hauliers still find it difficult to see any improvement in their prospects.

Keeping up to date with the latest legislation is reputed to be the biggest challenge facing the road haulage industry, and, in fact, there is so much legislation coming through these days that your eyes glaze over, according to Bob Durward, director of the British Aggregates Association.

On a positive note, however, readers of this Handbook should have no such problems comprehending the law or recognizing their statutory responsibilities, since, as always, its purpose is to help goods vehicle operators, transport managers and the many other individuals responsible for road transport operations to know and understand their legal obligations. More particularly, it should help them avoid the risks of prosecution, along with the heavy financial penalties imposed these days on conviction and, even more worrying, the imposition of punitive action against their operator’s licence – these being the almost certain consequences of illegal activities that the transport trade press continues to report week by week with unfailing regularity. I hope this Handbook will, as ever, help to steer readers clear of such problems and provide both interesting and intelligible reading as well as a useful and ready source of reference to the many and complex legal requirements relating to goods vehicle ownership and use.

Previous Editions of The Transport Manager’s and Operator’s HandbookReaders may be interested to note that a full set of all previous editions of the Handbook (ie 45 editions to date from the first in 1970) are held by the Chartered Institute of Logistics and Transport in its Corby Knowledge Centre, where they may be accessed by anybody researching the progress of transport legislation over this period.

David Lowe



Goods Vehicle Operator Licensing

Operator (‘O’) licensing is the regulatory ‘quality’ control system imposed by government. Similar systems operate throughout the EU, all established to ensure

the safe and legal operation of most goods vehicles in Great Britain and Europe. While other individual aspects of legislation in the UK also apply to such vehicles, the ‘O’ licensing system provides the overriding control of road freight transport operations. Failure to observe the requirements and conditions under which ‘O’ licences are granted will lead to severe penalty; likewise, breach of other legislation can result in appropriate penalties as set out in respective statutes and, subsequently, will involve penalties against the operators’ licence itself. Similar licensing controls apply to goods vehicle operations in Northern Ireland under the new NI operator licensing scheme, operated by the Department of the Environment Northern Ireland (see later).

Under the current UK licensing schemes, trade or business users of most goods vehicles and vehicle combinations (vehicles with trailers) over 3.5 tonnes maximum permissible weight must hold an ‘O’ licence for such vehicles, whether they are used for carrying goods in connection with the operator’s main trade or business as an own-account operator (ie a trade or business other than that of carrying goods for hire or reward) or are used for hire or reward road haulage operations. Certain goods vehicles, including those used exclusively for private purposes, are exempt from the licensing requirements. Details of the exempt vehicles to which ‘O’ licensing does not apply are given on pp 10–13.

The original UK system of operators’ licensing was established by the Transport Act 1968, the relevant provisions of which are now consolidated into the Goods Vehicle (Licensing of Operators) Act 1995. This Act states that no person may use a goods vehicle on a road for hire or reward or in connection with any trade or business carried on by him except under an operator’s licence.

Important EU rules concerning the conditions to be complied with to pursue the occupation of road transport operator and accompanying UK rules giving effect to the EU rules in the UK were introduced with effect from 4 December 2011 as follows:

●● EC Regulation 1071/2009/EC

●● The Road Transport Operator Regulations 2011 (SI 2632/2011/EC)

01



8 Lowe’s Transport Manager’s and Operator’s Handbook 2016

While much of the pre-existing operator (‘O’) licensing scheme described in this chapter remains unchanged, there are certain new provisions which are noted in the following text.

List of Relevant LegislationCopies of the legislation can be freely downloaded from http://www.legislation.gov.uk.

●● The Goods Vehicles (Licensing of Operators) Act 1995

●● The Goods Vehicles (Licensing of Operators) Regulations 1995 (SI 1995/2869) (as amended)

●● The Goods Vehicle Operators (Qualifications) Regulations 1999 (SI 1999/2430) (as amended)

●● The Road Transport Operator Regulations 2011 (SI 2011/2632)

●● EU Regulation 1071/2009 establishing common rules concerning conditions to be complied with to pursue the occupation of road transport operator

●● EU Regulation 1072/2009 on common rules for access to the international road haulage market

●● The Goods Vehicles (Community Licences) Regulations 2011 (SI 2011/2633)

There are also guides and advice available from the website above, including the GV74, mentioned earlier.

Administration of Licensing System

The ‘O’ licensing system, which is based on the concept of ensuring legal and safe operation and thus is a system of ‘quality’ as opposed to ‘quantity’ licensing, is ad-ministered on a regional (ie Traffic Area) basis throughout Great Britain. (Northern Ireland’s Road Freight Vehicle Operator Licensing system is dealt with separately by the Driver and Vehicle Agency – part of the Department of the Environment in Belfast.)

The Traffic Areas each have their own Traffic Commissioner (TC) and Traffic Area Offices (TAOs), to form the network (see Appendix I for a list). Operator licence application administration is now centralized at the address below where the staff either deal with the issue or forward it for consideration by the TC concerned:

DVSA Central Licensing OfficeHillcrest House386 Harehills LaneLeeds LS9 6NF

The acronym DVSA has replaced both VOSA and DSA since their merger in 2014.In spite of much of the administration being centred in Leeds, post and

correspondence for the public inquiry and regional intelligence units, and personal



9Goods Vehicle Operator Licensing

post for the Traffic Commissioners, should continue to be sent to local offices.The central licensing office supports the existing Traffic Commissioners, and their

roles as independent licensing authorities is not affected. Traffic area boundaries remain unchanged and public inquiries will continue to be held in the area of each TC.

These TCs are appointed by the Secretary of State for Transport and are ‘independent quasi-judicial authorities’, who have the statutory power to grant or refuse operators’ licences, to place road safety and environmental conditions or restrictions on such licences where necessary, and subsequently to impose penalties against licences in the event of the holder being convicted for goods vehicle-related offences.

NB: The male gender is used throughout this Handbook when referring to TCs although at the time of writing there are a number of female TCs. These include Beverley Bell who is currently the Senior Traffic Commissioner, Sarah Bell (West of England) and Joan Aitken (Scotland). No discrimination, prejudice or bias is intended by such use.

Figures published in July 2014 showed that there were 337,570 goods vehicles specified in 77,732 ‘O’ licences in Great Britain, of which 41,121 were restricted licences, 28,563 were standard national licences and 8,048 were standard interna-tional licences. These numbers show a continuing trend of small decreases overall on previous figures, and are well below the high 1989/90 figure of 132,236 valid ‘O’ licences in issue, covering 441,656 goods vehicles. Currently, 34,073 certified copies of European Community Authorisations are in issue. This final figure is actually a small increase and ‘may’ indicate that while the number of licences issued continues to fall the larger operators are increasing their fleet sizes.

Source: Annual reports of the TCs (covering Goods Vehicle Operator Licensing) for the period 1 April 2013 to 31 March 2014.

The Operator Licensing Self-Service System

The Traffic Area Network (TAN) computer system came into operation in mid-2002. It was merged with the ex-VOSA system and went live in October 2005 and is to be found now on the DVSA website at www.dvsa.gov.uk. Principally, this system significantly reduces the time taken to process ‘O’ licence changes and particularly results in the 28-day period of grace for advising the TC of vehicle changes being abolished. Operators will be expected to transact such business online. They must use a pre-registered user ID and a case-sensitive password. ‘Applications and Decisions’ (see p 45) are now produced weekly instead of fortnightly. Additionally, the system provides enforcement agencies with ‘real-time’ data to help them catch illegal operators.

This online Government service enables goods vehicle operators to add and remove vehicles from their operator’s licence at any time of the day or night without the need to complete an application form and without any intervention by DVSA




staff. It reduces the time taken to add a vehicle to a licence from 14 days to within a couple of minutes. Operators can register online to join the self-service system; check their own licence details held on the DVSA’s operator licence computer system; transfer vehicles between licences they hold in different areas; and track the progress of licence applications and set up access for other members of their staff, allowing greater access to records and transactions for larger companies. The system allows operators to pay their licence invoices and renew licences online. The site also contains a template for use by operators advertising changes to their licences in local newspapers.

‘O’ Licences Not for Sale

Operator’s licences are issued only to applicants who meet strict criteria as set out in the regulations and as described in this chapter. As such, ‘O’ licences are not trans-ferable between operators and may not be borrowed, used on loan or sold, with or without the vehicles to which they relate, by any person other than the authorized holder. Advertisements in the transport press purporting to be for the sale of such licences are misleading because they encourage respondents to act illegally and should be treated with great caution and, if spotted, readers are advised to contact the CLO and inform them of a possible breach of the regulations.

Exemptions from ‘O’ Licensing

There are a number of categories of vehicle which are exempt from ‘O’ licensing requirements as described below.

Small VehiclesThe principal exemption applies to ‘small’ vehicles identified as follows.

Rigid vehicles are ‘small’ if:

●● they are plated and the gross plated (ie maximum permissible) weight is not more than 3.5 tonnes;

●● they are unplated and have an unladen weight of not more than 1,525 kg.

A combination of a rigid vehicle and a drawbar trailer is ‘small’ if:

●● both the vehicle and the trailer are plated, and the total of the gross plated weights is not more than 3.5 tonnes;

●● either the vehicle or the trailer is not plated, and the total of the unladen weights is not more than 1,525 kg.

The old exemption from ‘O’ licensing for rigid vehicles not weighing more than 3.5 tonnes gross plated weight, used in combination with trailers with an unladen weight




of not more than 1,020 kg, has been withdrawn for operators engaged in hire and reward work. Combinations of vehicles and trailers exceeding the 3.5 tonne gross plated weight, or the 1,525 kg unladen weight threshold, are likely to be subject to the ‘O’ licensing regulation unless exempt for some other reason.

However, operators engaged in ‘own amount’ work with vehicles that do not exceed 3.5 tonnes gross plated weight used in combination with trailers that have an unladen weight that does not exceed 1,020 kg remain out of scope of the ‘O’ licence regulations.

Articulated vehicles are ‘small’ if:

●● the semi-trailer is plated, and the total of the unladen weight of the tractive unit and the plated weight of the semi-trailer is not more than 3.5 tonnes;

●● the semi-trailer is not plated, and the total of the unladen weights of the tractive unit and the semi-trailer is not more than 1,525 kg. However, this exemption does not apply if other people’s goods are carried for hire or reward.

Older VehiclesAlso included in the exemptions are pre-1 January 1977 vehicles which have an unladen weight not exceeding 1,525 kg and a gross weight greater than 3.5 tonnes.

Other ExemptionsRegulations list the following further specific exemptions from ‘O’ licensing requirements:

1 Vehicles licensed as agricultural machines used solely for handling specified goods, and any trailer drawn by them.

2 Dual-purpose vehicles and any trailer drawn by them.

3 Vehicles used on roads only for the purpose of passing between private premises in the immediate neighbourhood and belonging to the same person (except in the case of a vehicle used only in connection with excavation or demolition) provided that the distance travelled on the road in any one week does not exceed in aggregate 9.654 km (ie 6 miles).

4 Motor vehicles constructed or adapted primarily for the carriage of passengers and their effects and any trailer drawn by them while being so used.

5 Vehicles being used for funerals.

6 Vehicles being used for police, fire brigade and ambulance service purposes.

7 Vehicles being used for fire fighting or rescue work at mines.

8 Vehicles on which a permanent body has not yet been built carrying goods for trial or for use in building the body.

9 Vehicles being used under a trade licence.

10 Vehicles used in the service of a visiting force or headquarters.




11 Vehicles used by or under the control of HM United Kingdom forces.

12 Trailers not constructed for the carriage of goods but which are used incidentally for that purpose in connection with the construction, maintenance or repair of roads.

13 Road rollers or any trailer drawn by them.

14 Vehicles used by the Maritime and Coastguard Agency (MCA) or the Royal National Lifeboat Institution for the carriage of lifeboats, life-saving appliances or crew.

15 Vehicles fitted with permanent equipment (ie machines or appliances) so that the only goods carried are:

(a) for use in connection with the equipment;

(b) for threshing, grading, cleaning or chemically treating grain or for mixing by the equipment with other goods not carried on the vehicle to make animal fodder; or

(c) mud or other matter swept up from the road by the equipment.

16 Vehicles while being used by a local authority for the purpose of enactments relating to weights and measures or the sale of food or drugs.

17 Vehicles used by a local authority under the Civil Defence Act 1948.

18 Steam-propelled vehicles.

19 Tower wagons or any trailer drawn by them provided that any goods carried on the trailer are required for use in connection with the work on which the tower wagon is used.

20 Vehicles used on airports under the Civil Aviation Act 1982.

21 Electrically propelled vehicles.

22 Showmen’s goods vehicles and any trailer drawn by such vehicles.

23 Vehicle of non-resident operator carrying out cabotage operations in the UK under EU regulation 3118/93/EEC.

24 Vehicles first registered prior to 1 January 1977 which are not over 1,525 kg unladen weight and are plated for more than 3,500 kg but not more than 3,556.21 kg (3.5 tonnes).

25 Vehicles used by a highway authority in connection with weighbridges.

26 Vehicles used for emergency operations by the water, electricity, gas and telephone services.

27 Recovery vehicles.

28 Incomplete vehicles (with no fixed body).

29 Vehicles used for snow clearing or the distribution of grit, salt or other materials on frosted, ice-bound or snow-covered roads and for any other purpose connected with such activities.

NB: This exemption is not restricted solely to local authority-owned vehicles.

30 Vehicles going to or coming from a test station and carrying a load which is required for the test at the request of the Secretary of State for Transport (ie by the test station).




At the time of writing, some recovery vehicles, tower wagons, road rollers, mobile cranes and showman’s vehicles are under review and may be required to operate under an operator’s licence in the future.

Exemption for Private VehiclesExemptions also apply to vehicles used privately (ie for carrying goods for solely private purposes and not in any way connected with a business activity) and by voluntary organizations.

Northern Ireland VehiclesNorthern Ireland-based operators do not need ‘O’ licences for vehicles running, laden or unladen, in or through the UK while on international journeys. Similarly, there is no requirement for ‘O’ licences to be held by hauliers established in other EU member states (and not established in the UK) for vehicles operating within the UK on international journeys.

Non-exempt VehiclesAll other goods-carrying vehicles over 3.5 tonnes gross weight not specifically shown as exempt in the list above must be covered by an ‘O’ licence. This includes such vehicles that are only temporarily in the operator’s possession, or are hired from another operator without a driver, or borrowed on a short-term basis, if they are used in connection with a business (even a part-time business).

No Exemption for Fast Agricultural TractorsFastrac-type agricultural tractors capable of pulling substantial loads at speeds of up to 40 mph on public roads must be specified on an ‘O’ licence if used for hire or reward haulage work. The agricultural exemption mentioned above applies only when such machines are used by farmers in connection with their own agricultural business.

These vehicles provide unfair competition to licensed road hauliers by using red diesel and under-age drivers, by paying a reduced rate vehicle excise duty and by not having any requirements to observe the law on goods vehicle plating and testing, drivers’ hours, breaks and rest periods, and tachographs.

The Vehicle UserAn ‘O’ licence must be obtained by the ‘user’ of the vehicle for all the vehicles he operates to which the regulations apply. The ‘user’ may be the owner of the vehicle or he may have hired it. If the vehicle was hired without a driver, the hirer is the ‘user’. There is considerable importance attached to the word ‘user’, and its exact meaning, both for the purposes of ‘O’ licensing and in other regulations. It may be explained simply as follows:

●● An owner-driver who uses his vehicle in connection with his own business is the ‘user’ of his own vehicle.

●● If the owner of a vehicle employs a driver to drive it for him and he pays the driver’s wages then the owner is the ‘user’ because he is the employer of the driver.




●● If a vehicle is borrowed, leased or hired without a driver and the borrower or hirer drives it himself or pays the wages of a driver he employs to drive it then the borrower or hirer is the ‘user’.

From this it can be seen that, in general, the person who pays the driver’s wages is the ‘user’ of a vehicle, and it is this person (or company) who is responsible for holding an ‘O’ licence and for the safe condition of the vehicle on the road and for ensuring that it is operated in accordance with the law. However, it must be remembered that the driver himself, although an employee, is still also the user of the vehicle in the context of certain legislation (eg the Road Vehicles (Construction and Use) Regulations 1986, as amended) and he, too, is responsible for its safe condition on the road and is liable to prosecution if it is not in safe and legal condition.

A situation has arisen in recent times where owner-drivers of goods vehicles who cannot themselves obtain the professional competence qualification have had their vehicles specified on the ‘O’ licence of another operator but have nevertheless been paid as self-employed contractors to the other operator. This practice is illegal because if the driver owns the vehicle and uses it in connection with his business then by virtue of the regulations he is the ‘user’ and is therefore responsible for holding the ‘O’ licence for it.

Agency DriversDependence on agencies for the supply of temporary drivers to provide relief manpower when regular drivers are not available has caused difficulty in interpretation of the term ‘user’ and in deciding who should hold the ‘O’ licence: the vehicle owner or the agency which employs the driver. It can be seen from the second bullet point item above that the person who pays the driver’s wages is the ‘user’, and is therefore the person who should hold the ‘O’ licence.

However, the status of the vehicle ‘user’ in these circumstances has been determined by the agencies getting operators to sign agreements whereby the vehicle operator technically becomes the employer of the driver rather than the agency being the employer and consequently the operator remains the legal ‘user’ of the vehicle. Usually the agency asks the hirer to sign an agreement whereby the agency becomes the ‘agent’ of the operator for these purposes in paying the driver’s wages. This practice has been proved in court to be legally acceptable on the grounds that the Transport Act 1968 section 92(2) states that ‘the person whose servant or agent the driver is, shall be deemed to be the person using the vehicle’. The driver is considered to be the servant of the hirer because the hirer gives instructions and directs the activities of the driver who is temporarily in his employ. The key issue here is who controls how the drivers do their job. This must be the ‘user’ of the vehicle and the holder of the ‘O’ licence.

The great danger with agency drivers is that the operator has no sound means of establishing whether the driver is legally qualified to drive or whether he has already exceeded his permitted driving hours on previous days and whether he has had adequate rest periods, other than to be able to download information held on the driver’s ‘digi’ tacho card. Reputable agencies usually go to considerable lengths to ensure that drivers provided by them for their clients are properly licenced and




have complied with the driving hours rules in all respects. It is worth also remembering that the use of casually hired or temporary drivers (whose backgrounds and previous experiences may not be fully known) can result in jeopardy of the contract of insurance covering the use of vehicles and there could also be serious security risks as well as possible ‘O’ licence penalties for infringements of the law. For this reason the operator should confine himself to obtaining drivers from reputable agencies who are known to have vetted drivers satisfactorily.

Operators who use agency drivers should be aware that they may be held liable for negligence or driving offences committed by such drivers. They are also liable for ensuring the health and safety of hired drivers, and must inform them of the legal requirements of vehicle operations, such as the ‘hours’ law, tachographs, safe loading and vehicle checks.

A Code of Practice for the employment of agency drivers is available from offices of the Freight Transport Association (FTA), the Road Haulage Association (RHA) and the Recruitment and Employment Confederation (REC). The Code sets out the respective duties and responsibilities of the haulier on the one hand and the supplying agency on the other, with a checklist for each to ensure that full and correct information is exchanged as to the requirement for the driver (eg the skills and personal attributes required) and the particular job to be done. It also contains a model set of instructions and procedures which should be given to drivers.

Copies of the Code can be obtained from local FTA and RHA offices or from the REC at Dorset House, First Floor, 27–45 Stamford Street, London SE1 9NT (tel: 020 7009 2100, e-mail: [email protected]).

Rental of Vehicles

Rental of vehicles on a short-term basis of a few days or a few weeks, which is the usual arrangement, does not impose onerous contractual obligations on the hirer. It should be noted that whilst under the control of the hirer, the mechanical condition of the vehicle is the hirer’s responsibility (see below).

‘O’ Licensing ProvisionsHiring does involve other legal obligations in respect of the vehicle itself and its use. For a start, much depends on the gross weight of the vehicle. If it is over 3.5 tonnes permissible maximum weight and has been rented for use in connection with a trade or business, then the person or firm renting it must hold an ‘O’ licence and there must be a margin on that licence to cover the renting of one or more additional vehicles.

There is no need to advise the TC of details of the vehicle unless it is to be retained on hire for more than one month, after which time the TC must be notified so an ‘O’ licence windscreen disc can be issued for the vehicle. If the vehicle is rented for a shorter period and then returned to the rental company to be replaced by another vehicle, the TC does not have to be notified if the combined total of the two rental periods exceeds one month unless both are part of the same rental agreement.




If the over-3.5-tonne vehicle is rented by a firm for use in another traffic area different from the one in which the ‘O’ licence is held, then an ‘O’ licence must be obtained in that other traffic area before a vehicle is permitted to operate from a base there.

Whether or not the rented vehicle comes within the scope of ‘O’ licensing, the person or firm renting it carries the user responsibility for its safe mechanical condition when it is on the road. Consequently, if vehicle faults result in prosecution the user will have to pay any fines imposed (not the rental company) and the user’s ‘O’ licence will be put in jeopardy (even if the vehicle is not specified on his ‘O’ licence). Therefore, careful selection of a reputable rental company with high maintenance standards is essential.

Hire and Contract HireHiring of vehicles (or more specifically contract hire), as opposed to rental, implies a longer-term arrangement with a more rigid agreement as to the obligations of the parties involved. Hiring arrangements vary considerably since the vehicle provider and the customer draw up a contract to incorporate the services required. There are two principal forms of contract hire: vehicles supplied with drivers and vehicles supplied without drivers.

The important difference is that in the former case the contract hire company, as the employer of the driver, is the ‘user’ of the vehicles in law and therefore holds the ‘O’ licence and shoulders the legal responsibilities previously described, while the hirer merely operates the vehicles exclusively to suit his requirements. However, in the latter case the hirer is the ‘user’ and ‘O’ licence holder and, as with vehicles purchased and leased with his own employee drivers at the wheel, he carries the full legal responsibilities.

Advantages of Contract HireThis method of vehicle acquisition offers a number of advantages. Principally, there is no investment of capital (generally not even an initial deposit to be found) and cash flow for transport services is predictable throughout the year, thus allowing easy budgeting. One regular monthly invoice covers all capital and operating costs. The hire charges are fully allowable against tax.

Overall, full contract hire with driver is advantageous to the operator, because it relieves him of the burdens of capital expenditure on an ancillary activity and of a welter of legal responsibilities and yet provides him with the right vehicles for his exclusive use to fulfil his delivery requirements as he wishes. He thus has the best of both worlds – all his transport needs met without the major burdens usually encountered by own-fleet operators.

A further financial advantage can arise for a firm operating its own fleet but wishing to switch to contract hire to gain the benefits outlined. Contract hire companies will usually purchase a whole existing fleet and then contract-hire it back to the operator, thus still giving him resources to meet his transport needs and yet providing him with an immediate refund of the capital tied up in vehicles. This proposition can be used to advantage in relieving cash-flow pressure.




Leasing

Leasing is a totally different concept from outright purchase or hire purchase in that the operator (ie the lessee) never actually owns the vehicle but he has the full use of it as though it were his own. It is also a different concept from rental and hiring arrangements in that it is purely a financial means of acquiring vehicles. In other words, those putting up the money are not transport or vehicle operators, they are finance houses.

Several different forms of leasing are available (basically divided by the assumption of risk, with the lessee taking the risk with a pure finance lease and the lessor retaining the risk with an operating lease) and legislation governing leasing arrangements is subject to change. Also, the way in which the accountancy profession treats leasing is subject to variation, so it is important to discuss any proposed leasing arrangement with a professional accountant before commitment to an agreement.

The general concept of leasing is that a finance house (ie the lessor) purchases a vehicle, for which the operator has specified his requirements and negotiated the price and any available discount from the supplier, and then it spreads the capital cost, interest charges, overhead costs and its profit margin over a period of time to determine the amount of the periodic repayments.

Where leasing is purely a financial arrangement, the advantages and dis-advantages from an operational viewpoint are the same as for outright purchase. Because in principle the lessee operates the vehicle as though he owns it and he employs the driver, the full weight of legal responsibility, as already outlined, applies to him so he needs to have a full transport back-up of administration and operational staff, maintenance facilities and policies for selection of the correct vehicles and for replacement at the most economic intervals. Where maintenance is included in the leasing package this allows the operator to more accurately forecast expenditure, develop quotations and form operating budgets.

Restricted and Standard ‘O’ Licences

There are three main types of ‘O’ licence as described below and, in certain circum-stances, a temporary licence known as an interim licence or interim authorization may be granted in exceptional circumstances (see p 35).

1 Restricted licences: available only to own-account operators who carry nothing other than goods in connection with their own trade or business, which is a business other than that of carrying goods for hire or reward. These licences cover both national and international transport operations with own-account goods. Restricted ‘O’ licence holders must not use their vehicles to carry goods for hire or reward or on behalf of customers’ businesses – even if it is done only as a favour or is seen as being part of the service provided to a customer and even if no charges are raised (see below). Such activities are illegal and could result in penalties.




2 Standard licences (national transport operations): for hire or reward (ie professional) hauliers, or own-account operators who also engage in hire or reward operations, but restricted solely to national transport operations (ie operations exclusively within the UK). Own-account holders of such licences may also carry their own goods (but not goods for hire or reward) on international journeys.

3 Standard licences (national and international transport operations): for hire or reward (ie professional) hauliers, or own-account operators who also engage in hire or reward carrying, on both national and international transport operations.

National transport operations in this context can include journeys to and from ports with loaded trailers provided that the load is not subject to the CMR Convention for the journey to, or from, the port.

Standard Licences for Own-Account OperatorsOwn-account operators may voluntarily choose to hold a standard ‘O’ licence for national or both national and international transport operations instead of a restricted licence provided they are prepared to meet the necessary additional qualifying requirements (principally the professional competence qualification – see Chapter 2 – and the need for a status of ‘good repute’). Among the reasons which may influence them to take this step is the desire to carry goods for hire or reward to utilize spare capacity on their vehicles, especially on return trips. Such a requirement may also arise because a firm is involved in carrying goods for associate companies on a reciprocal or integrated working basis which does not come within the scope of activities which are permitted under ‘O’ licensing between subsidiary companies and holding companies (see p 50) or firms may find themselves in the position where they carry goods in connection with their customers’, as opposed to their own, businesses.

Firms holding restricted ‘O’ licences may not carry on their vehicles goods on behalf of customers (ie in connection with the trade or business of the customer rather than in connection with their own business) or other firms even if such operations are described as being a ‘favour’ or ‘part of the service’ to the customer and involve no payment whatsoever. This may occur, for example, when a vehicle delivers goods to a customer and the customer then asks the driver to drop off items on his return journey because he is ‘going past the door’ and their own vehicle is not available. Such activities would be illegal under the terms of a restricted ‘O’ licence and if two convictions for such an offence are made within five years, the licence must be revoked by the TC.

Requirements for ‘O’ Licensing

In order to obtain an ‘O’ licence, applicants must satisfy certain conditions specified in regulations.




Restricted LicencesApplicants must be:

●● fit and proper persons;

●● of appropriate financial standing.

Standard Licences (national transport operations)Applicants must be:

●● of good repute;

●● of appropriate financial standing;

●● professionally competent, or must employ a person who is professionally competent.

Standard Licences (national and international transport operations)Applicants must be:



●● professionally competent, or must employ a person who is professionally competent.

NB: Since 2014 applicants now also need to declare ‘any bankruptcy or financial failures’ when applying for an ‘O’ licence.

Other Legal RequirementsBesides the specific requirements mentioned above, licence applicants and holders have to satisfy further legal requirements relating to the suitability and environmental accept-ability of their vehicle operating centres, the suitability of their vehicle maintenance facilities or arrangements and, overall, their ability and willingness to comply with the law in regard to vehicle operating as demonstrated by signing the undertakings on the ‘O’ licence application form. These matters are dealt with in detail in this chapter.

Road hauliers should note that increasingly TCs are urging licensed operators to check carefully that any sub-contract road hauliers to whom they pass on work are fully licensed to carry out the work. See p 56.

Good ReputeFor a TC to be able to grant an ‘O’ licence, he must determine that the applicant is of ‘good repute’. Without this particular requirement being well established, the fact




that the applicant may meet all other relevant criteria is of no account; no licence will be granted.

With the introduction of new provisions from EU Regulation 1071/2009/EC, much tougher good repute standards are imposed on both new and existing operators.

The term ‘good repute’ is defined on the basis that an individual is not of good repute if he has been convicted of more than one serious offence or of road transport offences concerning:

●● pay and employment conditions in the profession (ie of road haulier);

●● drivers’ hours and rest periods;

●● weights and dimensions of goods vehicles;

●● road and vehicle safety;

●● protection of the environment; and

●● rules concerning professional liability.

For the purposes of the standard ‘O’ licensing scheme this means that the applicant for a licence (ie an individual) must not have a past record which includes more than one conviction for serious offences or conviction for road transport offences during the previous five years (excluding convictions that are ‘spent’ – see below) relating to the above issues. Similarly, to be a fit and proper person in order to obtain a restricted ‘O’ licence means that there should not be a past record of such offences. If it is a limited liability company applying for a licence and the company, or any director, has relevant convictions on their record (ie for serious offences. The term used is ‘relevant’ offences and these may include prosecutions for issues such as breaches of Health and Safety Regulations, etc, as listed below) then the TC may use his discretion in deciding whether the firm, or director, is of good repute.

It should be noted that the TC will not necessarily refuse to grant a licence to an applicant who has had ‘relevant’ or transport-related convictions – but he must if they are for more than one serious offence, which affects the applicant’s good repute – but he will consider the number and seriousness of the convictions before making a grant. He may, for example, issue a licence for a shorter period to see if the applicant has ‘mended his ways’, or grant a licence for fewer vehicles than the number requested. If, during the currency of a licence, an ‘O’ licence holder is convicted of offences related to goods vehicle operations, the TC may call the operator to a public inquiry and determine whether he is still a fit and proper person or of good repute and whether he should be allowed to continue holding an ‘O’ licence (see also pp 80–82).

In the case of partnership applications for licences, if one of the partners is considered not to be of good repute, then the TC will be bound to conclude that the partnership firm is not of good repute and, on that basis, he may also refuse to grant a licence.

The relevant offences for which conviction damages a person’s good repute are those specified in Regulation 1071/2009/EC Article 6(1)(2) and Annex IV as follows:

●● commercial law;

●● insolvency law (see note above);

●● pay and employment conditions in the profession;




●● road traffic;

●● professional liability;

●● trafficking in human beings or drugs;

●● the driving time and rest periods of drivers, working time and the installation and use of recording equipment;

●● the maximum weights and dimensions of commercial vehicles used in international traffic;

●● the initial qualification and continuous training of drivers;

●● the roadworthiness of commercial vehicles, including the compulsory technical inspection of motor vehicles;

●● access to the market in international road haulage or, as appropriate, access to the market in road passenger transport;

●● safety in the carriage of dangerous goods by road;

●● the installation and use of speed-limiting devices in certain categories of vehicle;

●● driving licences;

●● admission to the occupation of road transport operator;

●● live animal transport.

Under Regulation 1071/2009/EC the most serious infringements for the purposes of Article 6(2) (see first six bullet points above) are as follows:

1 (a) Exceeding the maximum 6-day or fortnightly driving time limits by margins of 25 per cent or more.

(b) Exceeding, during a daily working period, the maximum daily driving time limit by a margin of 50 per cent or more without taking a break or without an uninterrupted rest period of at least 4.5 hours.

2 Not having a tachograph and /or speed limiter, or using a fraudulent device able to modify the records of the recording equipment and /or the speed limiter or falsifying record sheets or data downloaded from the tachograph and /or the driver card.

3 Driving without a valid roadworthiness certificate if such a document is required under Community law and /or driving with a very serious deficiency of, among other things, the braking system, the steering linkages, the wheels/tyres, the suspension or chassis that would create such an immediate risk to road safety that it leads to a decision to immobilize the vehicle.

4 Transporting dangerous goods that are prohibited for transport or transporting such goods in a prohibited or non-approved means of containment or without identifying them on the vehicle as dangerous goods, thus endangering lives or the environment to such extent that it leads to a decision to immobilize the vehicle.

5 Carrying passengers or goods without holding a valid driving licence or carrying by an undertaking not holding a valid Community licence.




6 Driving with a driver card that has been falsified, or with a card of which the driver is not the holder, or which has been obtained on the basis of false declarations and /or forged documents.

7 Carrying goods exceeding the maximum permissible laden mass by 20 per cent or more for vehicles the permissible laden weight of which exceeds 12 tonnes, and by 25 per cent or more for vehicles the permissible laden weight of which does not exceed 12 tonnes.

The seven main categorized offences above are now normally referred to as the ‘Seven Deadly Sins’.

Commission of any of the seven offences listed above, besides any fines imposed by the Courts, may result in:

●● the operator’s OCRS score being placed straight into the Red Band (see Section 14);

●● loss of good repute for the operator and /or transport manager;

●● if appropriate, a premises check of the undertaking;

●● a record of the offence(s) being made in the National Electronic Register (see p 56).

Serious OffencesA serious offence, by an individual or by a company or its management, as referred to above is defined as one where, if committed in the UK, a sentence of more than three months’ imprisonment, or a community service order of more than 60 hours was ordered, or a fine exceeding level four on the standard scale (currently £2,500) was imposed. If committed abroad the seriousness of the offence would be determined by assessing the punishment relative to UK standards.

Criminal OffencesSince 1 April 1998 convictions for offences such as falsifying records (eg tachograph charts or records), forgery (eg of insurance documents or a driving licence) and fraudulent use or display of an official document (eg an ‘O’ licence disc), including aiding and abetting these offences, have branded the offender a criminal. These convictions will be recorded on the Police National Computer and can be accessed at will by the police, other organizations and possibly, in due course, the TCs in determining a person’s good repute for ‘O’ licensing purposes.

Spent ConvictionsSpent convictions, which are referred to above in the context of good repute, are those which do not have to be declared on the licence application form, because they were incurred sufficiently long ago to be considered legally invalid for determining a person’s past record. Under the Rehabilitation of Offenders Act 1974 and revised in March 2014, the rehabilitation period (the length of time before a caution or conviction becomes spent) is determined by the type of disposal administered or the length of the sentence imposed. Rehabilitation periods that run beyond the end of a sentence are made up of the total sentence length plus an additional period that




Sentence/disposal Buffer period for adults (18 and over at the time of conviction or the time the disposal is administered). This applies from the end date of the sentence (including the licence period)

Buffer period for young people (under 18 at the time of conviction or the time the disposal is administered). This applies from the end date of the sentence (including the licence period)

Custodial sentence* of over 4 years, or a public protection sentence

Never spent Never spent

Custodial sentence of over 30 months (2½ years) and up to and including 48 months (4 years)

7 years 3½ years

Custodial sentence of over 6 months and up to and including 30 months (2½ years)

4 years 2 years

Custodial sentence of 6 months or less

2 years 18 months

Community order or youth rehabilitation order**

1 year 6 months

runs from the end of the sentence, which are commonly called the ‘buffer periods’. Other rehabilitation periods start from the date of conviction or the date the penalty was imposed. The ‘buffer periods’ are halved for those who are under 18 at date of conviction (save for custodial sentences of six months or less where the ‘buffer period’ is 18 months). The rehabilitation periods for sentences with additional ‘buffer periods’ which run from the end date of the sentence are shown in the table below:

*Custodial sentence includes a sentence of imprisonment (both an immediate custodial sentence and a suspended sentence), a sentence of detention in a young off ender institution, a sentence of detention under section 91 of the Powers of Criminal Courts (Sentencing) Act 2000, a detention and training order, a sentence of youth custody, a sentence of corrective training and a sentence of Borstal training.

**In relation to any community or youth rehabilitation order which has no specifi ed end date, the rehabilitation period is 2 years from the date of conviction.




Sentence/disposal Rehabilitation period for adults (18 and over at the time of conviction or the time the disposal is administered).

Rehabilitation period for young people (under 18 at the time of conviction or the time the disposal is administered).

Fine 1 year 6 months

Conditional discharge Period of the order Period of the order

Absolute discharge None None

Conditional caution and youth conditional caution

3 months or when the caution ceases to have effect if earlier

3 months

Simple caution, youth caution

Spent immediately Spent immediately

Compensation order On the discharge of the order (ie when it is paid in full)

On the discharge of the order (ie when it is paid in full)

Binding over order Period of the order Period of the order

Attendance centre order

Period of the order Period of the order

Hospital order (with or without a restriction order)

Period of the order Period of the order

Referral order Not available for adults Period of the order

Reparation order Not available for adults None

The following table sets out the rehabilitation period for sentences which do not have “buffer periods” and for which the rehabilitation period runs from the date of conviction:

Financial StandingThe requirement for fi nancial standing means the applicant being able to prove to, or assure, the TC that suffi cient funds (ie money) are readily available to maintain the




vehicles to be covered by the licence to the standards of fitness and safety required by law.

The actual levels of financial reserves are quoted in euros as €9,000 for the first authorized vehicle and €5,000 for each additional authorized vehicle.

However, in recent years due to the fluctuations of the value of the Euro the UK TCs review this provision annually and, as of 1 January 2016, the financial resources required for UK operators in support of an ‘O’ licence application have changed as follows:

For a standard national or standard international ‘O’ licence the relevant amounts are:

●● First authorized vehicle £6,650

●● Each additional authorized vehicle £3,700

For a restricted ‘O’ licence the relevant amounts are:

●● First authorized vehicle £3,100

●● Each additional vehicle £1,700

The financial resources for Standard Licences is slightly lower than it was in 2015 due to the strength of the British pound sterling against the euro. The financial resources for Restricted Licences remain the same.

These resources comprising both capital and reserves must be available to the operator at all times and must be demonstrated on the basis of annual accounts certified by an auditor or duly accredited person.

The above values are converted from euros, which vary daily in line with exchange rate fluctuations (in May 2015 the euro was worth about 75 pence sterling). For the purposes of the Directive its value against national currencies is to be fixed annually based on its value on the first working day of October each year to take effect from 1 January of the following calendar year (the rate is published in the Official Journal of the European Communities).

It is important to realize that the requirement for minimum levels of capital and reserves applies to the total number of vehicles authorized on an ‘O’ licence, not just to the vehicles currently specified. In the case where an operator has a significant margin between the number of authorized vehicles and those actually specified, he may wish to consider decreasing this margin to reduce the amount of financial resources he has to prove to the Traffic Commissioner. The number of authorized vehicles on an ‘O’ licence can be reduced by application to the TC using form GV81 (see p 50).

The EU Directive allows for the financial standards described above to be established by means of confirmation or assurance from a bank or from other properly qualified institutions that such funds are available, in the form of a bank guarantee, pledge or security, or by similar means. The operator does not need to actually hold the reserves but must have agreed access to them.

A key point that has been reiterated recently is that proof of sufficient finances to meet the legal requirement should not relate to a single day when a bank balance may have been artificially boosted by a temporary injection of funds that are, in effect, moved away again the next day, but rather should relate to an average balance over the life of the licence. The TC has to be certain that the licence applicant or operator has sufficient funds ‘available’* to establish and properly administer the business on a daily basis, not just to meet a target balance on a particular day.




* ‘Available’ in this context means, according to the Transport Tribunal: ‘capable of being used’; ‘at one’s disposal’; ‘within one’s reach’; ‘easy to get at’.

Failure to pay fines, other penalties and business debts as well as non-payment of vehicle excise duties will suggest to the TC that an operator has cash-flow problems and is therefore unlikely to meet the legal requirement for financial standing. This could lead to loss of the ‘O’ licence.

Assessment of Financial StandingOn the fifth anniversary of the grant of a licence, the TC will carry out a ‘wealth’ check to determine whether the required reserves have been available during the previous five years. If they have not, the licence holder will be deemed to be no longer of the required financial standing and the licence will be revoked.

The TC has considerable powers to inquire into the finances of applicants, including the new requirement that applicants need to declare any past bankruptcy or financial failures, and the right to ask for the production of proof of financial standing by means of audited accounts and bank statements or bank references, savings or deposit account books or other evidence of funds stated to be available for the maintenance of vehicles. He will particularly look at the firm’s balance sheet within the audited accounts and determine its liquidity (ie its capability of paying its debts as they fall due). He will examine the relevant financial ratios such as current assets to current liabilities, which ideally should not be less than 2:1, and the so-called quick ratio of quickly realizable assets (ie items which can quickly be turned into cash) to current liabilities which, in this case, should not be less than 1:1. It is believed that where a firm’s accounts show a current ratio of less than 0.5:1 the TC should consult with the financial assessors he is empowered to call on.

NB: Road hauliers who make a practice of factoring their debts (ie selling their unpaid invoices at less than face value to secure a quick cash return) may find the TC questioning their financial standing on the grounds that such practices are an indica-tor that all is not well within a firm and that it might not meet the required financial standards for holding an ‘O’ licence. However, new invoice factoring arrangements such as those offered by the Royal Bank of Scotland Commercial Services (RBSCS) may satisfy the TCs on the financial standing of an operator.

In complex cases, usually involving companies where, perhaps, funds are moved between one subsidiary and another, and there is cross-accounting and suchlike, the TCs can call on financial experts (assessors) to help determine the true position of an applicant.

Wrong LicencesIt is illegal to operate on the wrong type of ‘O’ licence. Applicants are required to specify which type of licence they require and those who specify restricted licences will be subject to severe penalties if they subsequently carry goods for hire or reward. Operators who specify standard licences covering only national operations and who engage in international operations will be similarly penalized.




Operating CentresThe vehicle operating centre is defined as the place where the vehicle is ‘normally kept’. This is commonly taken to mean the place where the vehicle is regularly parked when it is not in use and sufficient space must be available to park all the vehicles and trailers on the ‘O’ licence. However, places where vehicles are parked occasionally, even if on a regular basis, in circumstances that are exceptional to the normal conduct of the business, are not considered to be operating centres.

Where operators regularly permit drivers to take vehicles home with them at night and at weekends in circumstances that are not ‘exceptional’ to the normal conduct of the business, then the place where the drivers park vehicles near to their home becomes the vehicle operating centre. This place then must be declared on the ‘O’ licence application form.

In these circumstances an operator could have to declare a number of separate operating centres in addition to his normal depot or base and he could face environ-mental representation against each of these places and have restrictive environmental conditions placed on his licence in respect of their use. Alternatively, he could lose his licence if he fails to declare such places as operating centres. Failure to notify the TC of new or additional operating centres is an offence. Similarly, the practice of allowing drivers to take vehicles home regularly or, for other reasons, park away from the operating centre regularly (except when on genuine journeys away from base) puts the ‘O’ licence in jeopardy, as well as risking prosecution.

What is abundantly clear is that Traffic Commissioners expect licence applicants to be able to show that their proposed operating centre is both suitable in environmental terms and sufficiently large to accommodate all the vehicles authorized to be based there. Should this not be the case a licence may be refused or a grant made authorizing fewer vehicles (ie only as many, possibly, as can be parked at the centre).

Where an operating centre may be over-crowded at times leading to vehicles (including staff cars, etc) having to park outside on a road or roads in the area, or wait for periods outside in order to enter, this may also affect the suitability in relation to residents making representations about the centre affecting their use and enjoyment of their land or vehicles causing an obstruction.

It is useful to stress again that the use of an unauthorized operating centre or failure to notify the TC of a change of operating centre is an offence which can result in a fine of up to £2,500 on conviction and penalty against the ‘O’ licence.

Operating centres are subject to review as to their continued suitability at five-yearly intervals – at the TC’s discretion. In other words, the TC may call an operator for review once every five years, but should he decide not to do so the centre remains ‘suitable’ for another five years.

Licence Application

Applications for ‘O’ licences are based on where the operator keeps his vehicles. In the first instance the completed application form (GV79) must be sent to the DVSA Central Licensing Office in Leeds (see Appendix I). After initial processing the application will be forwarded to the TC for each Traffic Area in which the operator




has vehicles based. These bases will be the operating centres (see above for definition) for the vehicles. One ‘O’ licence will be sufficient to cover any number of vehicles operating at one centre and any number of operating centres in any one Traffic Area. If operating centres are in different Traffic Areas then separate ‘O’ licences will be required for each Traffic Area. (A list of Traffic Area Office addresses is to be found in Appendix I.)

Form GV79Application for a licence has to be made on the appropriate form – form GV79. Copies of the form and the official guidance notes – GV79 (G) – can be downloaded from: www.gov.uk/government/publications/application-for-a-goods-vehicle-operators- licence. This form incorporates questions relating to vehicle operating centres, the previous history of licence applicants during the past five years and the type of licence required. DVSA also publish a Guide to Operator Licensing (GV74) which is free to download from the DVSA website (dvsa.gov.uk/gv74).

There are questions to be answered on the form relating to the name and address of the business, its partners or directors; information regarding vehicles currently owned and those which it is planned to acquire is also required and the address of their respective operating centres. Questions ask if the applicant company or individual or any partners of the business have convictions which are not ‘spent’ (under the Rehabilitation of Offenders Act 1974 a person is relieved of the obligation to disclose information about a conviction which is ‘spent’ – see pp 22–24). Details are required of any such convictions including the date of the conviction, the nature of the offence, the name of the court and the penalty imposed.

Further questions require information about vehicle maintenance – who is to do it, when and where is it to be done, and what facilities there are at that place? Questions are asked about the financial status of the business proprietor, his partners or the directors of the business, in particular asking whether during the past three years any of them have been made bankrupt, been involved with a company which has gone into insolvent liquidation, or been disqualified from acting as a director or taking part in the management of a company. Details about the professionally competent person supporting the application for a standard licence are also required using a form TM1G. This is a declaration evidencing their personal details, details of the agreed hours of work, any relevant, or transport-specific convictions, the actual place of work and the address of the operating centre(s) for which he is responsible.

Accompanying the TM1G, an original version of their Certificate of Professional Competence and proof of their appointment must also be submitted.

UndertakingsWhen the applicant signs the form he is not only declaring that the statements of fact made on the form are true but also, in effect, he is making legally binding promises – undertakings – that statements of what he intends to do will be fulfilled. The under-takings relate to the observation of certain aspects of the law concerned with goods vehicle operation and the maintenance of vehicles included in the licence application.




If at some time during the currency of the licence the TC finds that these undertakings have not been fulfilled, as evidenced by any convictions for relevant offences, he may use his powers to revoke, suspend or curtail the licence. The basis on which the applicant makes the undertakings is that he promises the following:

I, or the licensed operator, undertake to make proper arrangements so that:

●● the laws relating to the driving and operation of vehicles used under this licence are observed;

●● the rules on drivers’ hours and tachographs are observed, proper records are kept and that these are made available on request;

●● vehicles and trailers are not overloaded;

●● vehicles operate within speed limits;

●● vehicles and trailers, including hired vehicles and trailers, are kept in a fit and serviceable condition;

●● drivers report promptly any defects or symptoms of defects that could prevent the safe operation of vehicles and /or trailers, and that any defects are recorded in writing;

●● records are kept (for 15 months) of all driver reports which record defects, all safety inspections, routine maintenance and repairs to vehicles, and that these are made available on request;

●● in respect of each operating centre specified, the number of vehicles and the number of trailers kept there will not exceed the maximum numbers authorized at each operating centre (which will be noted on the licence);

●● an unauthorized operating centre is not used in any traffic area;

●● furthermore, I will notify the TC of any convictions against myself, or the company, business partner(s), the company directors, nominated transport manager/s named in this application, or employees or agents of the applicant for this licence and, if the licence is issued, convictions against the licence holder or employees or agents of the licence holder;

●● I will ensure that the TC is notified within 28 days of any other changes, for example a change to the proposed maintenance arrangements; a change in the financial status of the licence holder [eg if placed in liquidation or receivership], or a change to Limited Company status or partnership, that might affect the licence, if issued.

* In 2013, the Senior TC issued Statutory Document No 2 which states that, whilst 28 days will normally be acceptable, in cases such as a change relating to a change of maintenance provider, the TC should be notified ‘as soon as possible’.

The application form is straightforward and simple to answer and extensive explana-tory notes are provided for guidance. The Traffic Area Office also sends applicants a free booklet, Goods Vehicle Operator Licensing – Guide for Operators (GV74), to provide further help. Further information is also available at the DVSA website: www.dvsa.gov.uk. This does not, however, mean that the form should not be carefully




studied or that any answer will do in an attempt to gain a licence. While it is obvious that to get an ‘O’ licence the undertakings must be signed, it should be remembered that the consequences of not fulfilling the stated undertakings can lead to penalties so severe as to put a small operator out of business and even to cause hardship to a large one. A warning about this in the following terms is included in the explanatory notes on the form so that applicants are left in no doubt as to the consequences of making false statements or not fulfilling statements:

‘I declare that the statements made in this application are true. I understand that the licence may be revoked if the licensed operator does not comply with the undertakings made and that it is an offence to make a false declaration.’

Form GV79AAnother form is involved in making an application for an ‘O’ licence. This is form GV79A, which is a supplementary sheet used for supplying details of vehicles, for example, registration number, maximum gross weight, body type – flat or sided including skeletals, box body or van, tanker or other type such as cement mixer or livestock carrier – and whether the vehicle is articulated, a tipper or refrigerated. Certain designation letters and numbers are used to indicate body and vehicle type as follows:

●● flat or sided including skeletals;

●● box body or van;

●● tanker;

●● other type (such as cement mixer, livestock carrier):

T Tipper; R Refrigerated; A Articulated.

Form TM1 (G)When completing the GV79 application form the operator must list all of the nominated transport managers they propose to name on the licence. In addition, using form TM1 (G), each named manager must provide their personal details, and give information of other employments and particulars of previous convictions. In addition, they should submit a signed contract of employment in order to confirm their stature. The manager is also required to sign a ‘Declaration’ contained within the TM1 (G), in which he undertakes to ensure vehicles are operated in a safe and legal manner. The manager’s original certificate which provides proof of their profes-sional competence must accompany the application.

The TCs have now formalized the number of hours that need to be spent by a nominated transport manager in order for them to be able to satisfy the TCs that they have actual control over the fleet(s) under their charge. These are as follows:

●● 2 or less vehicles 8 hours per week

●● 3 to 5 vehicles 15 hours per week






●● 15 to 29 vehicles Full time

●● 30+ vehicles Additional assistance may be required.

Additional hours may be required for fleets with trailers.

Additional Application FormsTwo supplementary application forms are used in connection with certain licence applications. These forms are GV79E (pale green in colour), dealing with environ-mental information, and GV79F (beige in colour), dealing with financial information. The forms are used only when the TC requires further information following the initial application on form GV79 on either or both of the relevant matters (ie environ-mental issues or finance).

Environmental InformationForm GV79E is sent to a licence applicant if the TC receives representations from local residents following publication of details of the applicant’s proposals regarding his vehicle operating centre in the local newspaper. The form must be completed and returned to the TC, who will then consider the application in the light of this further information, the information given by those making the environmental representations and as a result of making his own enquiries.

The form requires details of the applicant’s name and address, and the address of his proposed operating centre (see p 27 for definition). It then requires information about the vehicles to be normally kept at the centre and the number and types of trailer to be kept there. Information must be given about any other parking place in the vicinity of the operating centre which is to be used for parking authorized vehicles (ie those authorized on the licence). If the applicant is not the owner of the premises he must send evidence to show that he has permission or authority to use the place for parking vehicles.

A number of further questions must be answered on the form about the operating times of authorized vehicles – in particular, what time lorries will arrive at and leave the centre, whether they will use the centre on Saturdays or Sundays, what times they will arrive and leave on these days, whether maintenance work will be carried out there and between what hours, and whether any of this work will take place on Saturdays or Sundays and, if so, between what hours. The TC also wants to know whether there are any covered buildings at the centre in which this work is carried out.

A plan showing the parking positions for authorized vehicles must be sent when returning the completed form. This should show entry and exit points, main build-ings, surrounding roads with names and the normal parking area for the vehicles. The scale of the plan must be indicated and this is suggested as being 1:500, which is 1 centimetre to 5 metres or, roughly, 1 inch to 40 feet. A larger scale of 1 inch to 100 feet can be used if this is more convenient when the operating centre is large. If the proposed operating centre has not previously been used as such the TC must be given information about any application for or planning permission granted for the proposed use of the site as a goods vehicle operating centre.




Financial InformationForm GV79F is sometimes sent to new standard licence applicants when the TC requires additional information to enable him to consider whether the applicant meets the financial requirements for this type of licence. An application will be refused unless the TC is satisfied that the applicant has sufficient financial resources to set up and run his business both legally and safely. This fact is pointed out clearly on the form. Answers have to be given to questions about the vehicles, their average annual mileage and the estimated running cost for each individual type of vehicle.

Details must be given about the funds available to start up the business and where these are held (eg in the bank, in savings or as agreed bank overdraft or loan facilities, or in the form of share capital), and about the start-up costs for the business includ-ing the purchase price or amount of down payments on vehicles and on premises and the sum to be held in reserve as working capital. The applicant is required to give a forecast of the annual expenditure and income for his road haulage operations for a financial year. The TC expects this information to give a clear indication of the business finances for the year ahead. In certain cases the TC may ask for monthly information.

NB: Increasingly, TCs now seem less likely to issue this form, preferring to rely on supporting financial information in other forms – bank references for example.

Date for ApplicationsApplication for an ‘O’ licence should be made at least nine weeks before the day on which it is desired to take effect. In some Traffic Areas the time taken to process applications is much longer than nine weeks so new operators should be aware of the fact that it is illegal to start operating vehicles until their licence has actually been granted. Where there is an urgent need to start operations before a licence is granted through the normal processes, application can be made to the TC for an interim licence (see p 35).

Offences while Applications Are PendingApplicants for licences have a duty to advise the TC if, in the period of time between the application being submitted and it being dealt with by the TC, they are convicted of a relevant offence which they would have had to include on the application form had the conviction been made before the application was made. Failure to notify the TC is an offence and it could jeopardize any licence subsequently granted.

Advertising of ApplicationsApplicants for ‘O’ licences who are seeking a new licence, or variation of an existing licence, are required to arrange for publication of an advertisement (following a specified format to contain the necessary information for potential environmental representors – see Figure 1.1) in a local newspaper (or newspapers) circulating in the




figure 1.1 Format which must be used for ‘O’ licence newspaper advertisements

Goods Vehicle Operator’s Licence

trading as

of

is applying for a licence to use

as an operating centre for goods vehicles and

trailers

trailers

and to use

as an operating centre for goods vehicles and

Owners or occupiers of land (including buildings) near the operating centre(s) who

believe that their enjoyment of that land would be affected should make written

representations to the Traffic Commissioner at

stating their reasons within 21 days of this notice. Representors must at the same

time send a copy of their representations to the applicant at the address given at

the top of this notice. A Guide to making representations is available from the Traffic

Commissioner’s Office.

Advertisement form for use with new application on GV79




figure 1.1 continued

Goods Vehicle Operator’s Licence

trading as

of

is applying to change an existing licence as follows

* To keep an extra goods vehicles and trailers at the operating centre at

* To add an operating centre for goods vehicles and trailers at the

operating centre at

* To change existing conditions or undertakings applying at the operating centre at

from

to

* To remove the following conditions or undertakings which reads

and which applies to the operating centre

at

Owners or occupiers of land (including buildings) near the operating centre(s) who

believe that their enjoyment of that land would be affected should make written

representations to the Traffic Commissioner at

stating their reasons within 21 days of this notice. Representors must at the same

time send a copy of their representations to the applicant at the address given at

the top of this notice. A Guide to making representations is available from the

Traffic Commissioner’s Office.

Advertisement form for use with major variation application on form GV81




area where the operating centre is located. If more than one operating centre is specified in the application separate advertisements must be placed for each such centre in the respective local newspapers serving those locations. The sole purpose of the advertisement is to give local residents an opportunity (given to them under the regulations) to make representations against proposals to use a particular place as a goods vehicle operating centre.

The advertisement need appear only once but it must be published during a period extending from not more than 21 days before and not more than 21 days after the licence application is made. There is no specified minimum or maximum size require-ment for the advertisement but the TCs advise that it ‘should not be too small and should be easy to read’. Most adverts appear in single-column format extending to a few inches of text and at an average cost estimated to be in the region of £100–150. Normally the advertisement will appear in the public or official notices section of the newspaper.

Proof that the advertisement has appeared – and is published correctly (which many are not) – must be given to the TC before he considers the application and failure to produce this proof (achieved by sending in the appropriate page from the newspaper showing the advertisement itself and the name and date of the paper) will mean that the TC, by law, must refuse to consider the application. Normally this would mean making a fresh application, which, of course, delays the whole matter, adds to the costs by requiring another advertisement and could mean vehicles having to stand until the licence or variation is granted.

Schedule 4 Application ProcedureThis procedure can be used by a traffic commissioner to allow an operating centre to be accepted without the need to put an advert in a local paper, as is normally required. This would apply, for example, when transferring an operating centre currently on one operator’s licence to another operator.

However, there are particular circumstances that must be taken into consideration. These include:

●● The operating centre is an existing, properly authorized, centre being given up by the original operator.

●● The new operator must use it on the same terms as the original licence holder.

●● The applicant may specify only up to the total number of vehicles already specified at the operating centre of the original operator.

●● Any conditions that apply to the operating centre concerned are transferred with it.

Such approval of the Schedule 4 Procedure is allowed at the discretion of the TC. Applications for the Schedule 4 Procedure need to be made using forms GV79, GV81 and the supplementary form GV72. These are all available from the GOV.UK website.

Interim LicencesIn certain circumstances the TC may grant an interim licence pending his decision on the full licence application. The circumstances under which such a licence may be




granted are not precisely specified but they may be connected with some urgent need to move goods quickly because they are perishable or for some other urgent reason. A grant of an interim licence should not be taken as a guarantee that a full-term licence will be granted by the TC. An interim licence will not be granted in any case where the main requirements for ‘O’ licensing appear not to be met. For example, such a licence would not be granted to an applicant for a standard ‘O’ licence if he has not yet passed the CPC examination nor, indeed, while examination results are being awaited, nor on the assumption that the candidate will have passed. Neither will a grant of an interim licence normally be considered before the statutory 21-day waiting period for environmental representations and objections has expired.

Interim licences are not granted for any fixed period. Normally they remain in force until the TC has made his decision on the grant of a full licence or, alternatively, until they are revoked. Applications are made using form INT 1.

Duration of LicencesOperators’ licences, since 1 January 1996, are valid indefinitely and will remain so unless the operator contravenes the terms under which his licence was granted or fails to pay the necessary fees by the due dates. Under normal circumstances the only reason for making a new application, and thus being subject to the risk of objection or environmental representation, is when a major variation of a licence is necessary in order to add to the number of authorized vehicles or to change an existing, or to add a new, operating centre to the licence. Despite being valid indefinitely, licences are still liable to penalty or total revocation should the operator be found to have contravened the law or breached the conditions placed on his licence. Additionally, operating centres are subject to ‘review’ (normally at five-yearly intervals, but not exclusively so) to determine whether they remain environmentally suitable – see p 43.

Licence Fees, Refunds and DiscsOperator licensing fees have been simplified and revised in order to part-fund enforce-ment and compliance activities.

Application fees and administrative charges:

Application fee for a licence (GV79) or for a major (publishable) variation (GV81)

£254 (Payment to accompany application)

Fee payable for the issue of a licence £397 (Payment within

15 working days of issue)

Charge for the continuation of an existing licence

£397 (Payment before the end of the month

preceding the end of the five-year period)

Fee payable for the issue of an interim licence or direction

£68 (Payment within

15 working days of issue)




It should be noted that all fees paid are non-refundable.

Termination of Licences for Unpaid FeesIt is important to note that failure to pay any of the fees described above by the due date will result in a licence being automatically terminated from the date on which the fee was due. In this event, the vehicle operation will have to cease and a new licence will have to be applied for before recommencing is permitted, if indeed it is permitted at all.

Licence Discs‘O’ licence discs, issued on the grant (or variation) of a licence, must be displayed on the vehicle (normally in the windscreen) in a clearly visible position and in a waterproof container. Licence discs are coloured as follows to differentiate between restricted and standard licences and between standard national and standard international licences:

●● restricted licence – orange;●● standard licence, national – blue;●● standard licence, international – green;●● interim licence – issued in the colour appropriate to the type of licence

applied for with the word ‘INTERIM’ across the face of the disc;●● copy discs – with the word ‘COPY’ in red across face of disc.

Goods vehicles’ licence discs are not interchangeable between vehicles or between operators. They are valid only when displayed on the vehicle whose registration number is shown on the disc (even if it is faded almost beyond recognition) and when that vehicle is being ‘used’ by the named operator to whom it was issued. Heavy fines are imposed on offenders who loan and borrow discs (this is fraudulent use and is a serious offence); their own ‘O’ licence may be jeopardized and the vehicle insurance could be invalidated.

Licence Surrender/TerminationThe ‘O’ licence itself and all vehicle windscreen discs must be returned to the TC on the change of type, surrender or termination of an ‘O’ licence.

Issue of Community AuthorizationsAll UK holders of standard ‘O’ licences covering international operations are issued (automatically) with a Community Authorization document to be kept at their main place of business together with certified copies equalling the total number of vehicles authorized on their operator’s licence (a certified copy must be carried on each vehicle when undertaking journeys from the UK to the EU and/or cross-border journeys within the EU) – more information on Community Authorizations is to be found in Chapter 26.




The TC’s Considerations

When an application for an ‘O’ licence is made, the TC will have certain points to take into consideration before deciding whether or not to grant any licence. Mainly he has to ensure that the basic legal requirements as described previously have been met and particularly that those relating to vehicle operation and maintenance will be complied with. These points are dealt with here.

Fit Persons and Good ReputeThe first point, and one of the fundamental requirements for ‘O’ licensing (as already described on pp 19–24, but a repeat here is useful), is whether the applicant, and any nominated person, is a fit person or is of good repute and is therefore fit to hold a licence. Basically, being a fit person and being of good repute are the same but the former relates to restricted ‘O’ licences over which the EU has no influence while the latter is the term used by the EU in setting its requirements for the holding of a licence to carry goods for hire or reward (ie the UK system of standard ‘O’ licences).

The TC, when deciding this, will take into account any previous record which the applicant (or the partners, directors or transport manager of the applicant’s business) might have had as an operator in terms of his ability or willingness to comply with the law in respect of vehicle operations and particularly maintenance, drivers’ hours and records, overloading and the like, also any previous convictions they may have for offences relating to the roadworthiness of vehicles and for other relevant offences. The regulations require that a TC take account of ‘serious offences’ besides just road transport offences when determining the good repute of an individual, or of com-pany management for a corporate ‘O’ licence application.

Maintenance Facilities/ArrangementsThe next point that the TC will consider, and one of the most important since it is at the very foundation of the ‘O’ licensing system, is whether the applicant has suitable facilities or has made satisfactory arrangements for the maintenance of vehicles which are to be specified on the licence in a safe and legal condition and for keeping suitable maintenance records (this is dealt with in more detail in Chapter 16). In particular the TC will be concerned to know that vehicles are being subjected to safety inspections at regular intervals of time or mileage.

Currently applicants for an ‘O’ licence need to give details of their proposed periods between safety inspections, although the final decision will be made by the TC. In general terms, inspections should be based on a time interval only but high mileage vehicles, older vehicles or vehicles undertaking arduous operations may also be considerations for the TC. However, TCs generally accept that, under normal conditions, a period of six weeks between inspections is the maximum that they find acceptable. The TCs also seek assurances that operators are using a written driver defect reporting system and wall charts, or electronic planners, for planning inspection and maintenance schedules.




Drivers’ Hours and RecordsThe TC will consider whether there are satisfactory arrangements for ensuring that the law relating to drivers’ hours and records (including tachographs) will be complied with.

OverloadingSimilarly, the TC will want to be sure that arrangements are made to prevent the overloading of vehicles and that vehicle weight limits in general will be observed.

Professional Competence RequirementsThe TC will want to know details of the nominated professionally competent person, who may be the applicant himself or an employee who holds a certificate of professional competence. The named professionally competent person in respect of a standard ‘O’ licence must be an active employee carrying out the functions of a transport manager in an adequate manner who must be able to prove that they have effective control over the vehicles under their change.

This point is reiterated in the new EC Regulation 1071/2009/EC (Article 4 (1)(b)) which states that the ‘transport manager’ must have a genuine link to the undertaking (ie the operator’s firm) such as, for example, being an employee, a director or a shareholder or must be engaged under contract as a freelance manager, to carry out the duties of transport manager for the undertaking (eg as an ‘external transport manager’). The key points that the TC will take account of are as follows:

●● whether the nominated transport manager is an ‘internal’ manager (ie a direct employee of the undertaking) or an ‘external’ manager (ie a freelance manager engaged under contract);

●● the number of operator licences for which that transport manager will be responsible – maximum four since 4 December 2011;

●● the amount of time that the external transport manager will spend in carrying out his duties for the operator;

●● the number of operating centres and authorized vehicles for which the external transport manager is responsible both on that licence and any other operator’s licences – maximum 4 and 50 from 4 December 2011;

●● the geographical location of the transport manager in relation to the operator’s licence and the operating centres on that licence;

●● any other employment or activities in which the proposed transport manager is engaged which may restrict his ability to devote sufficient time to the duties of a transport manager on that operator’s licence;

●● the terms upon which the proposed transport manager is to be employed.

In order to further ensure that nominated transport managers carry out their duties effectively and in accordance with the law, a proposed form of Transport Manager – Contract of Employment has been devised (see illustration on p 41), which must be completed by the ‘O’ licence holder and the appointed transport manager.




Number of Qualified PersonsThere is no restriction under the regulations (see Chapter 2) on the number of people in a transport department or organization who may be professionally competent and consequently hold certificates of competence although not necessarily nominated on an ‘O’ licence. Further, although restricted ‘O’ licence holders have no need to specify the name of a professionally competent person in order to obtain a licence, there is no restriction on such licence holders or their employees being professionally competent if they qualify personally.

In determining how many qualified persons must be named on a standard ‘O’ licence the TC will take account of the management structure of applicant firms, but generally there will need to be a minimum of one qualified person per ‘O’ licence. The TC may require the names of more qualified persons to be specified if he considers it appropriate in view of a division of responsibilities for the operation of vehicles under the licence or if vehicles specified on the licence are located at different operating centres within the Traffic Area.

Part-Time (ie ‘External’) ManagersIncreasingly, TCs are questioning the role of part-time and agency-provided profes-sionally competent transport managers. There is concern that such managers are not in a position to meet the statutory requirement for managers whereby they should have ‘continuous and effective responsibility’ for the fleet for which they are named. In particular, the question arises of the number of clients for whom many such agency managers are acting (now set in regulations at a maximum of four) and the remoteness from the operating bases for which they are supposedly responsible, with some such named managers being in contact only by telephone or via a fleeting visit and thus having, as one TC put it, ‘little physical contact with the drivers, the vehicles and the documentation’. This TC has stated that he intends to scrutinize closely any future applications involving agency-provided transport managers.

NB: New rules affecting part-time transport managers were introduced from 4 December 2011 under EU Regulation 1071/2009/EC – see Chapter 2.




TRANSPORT MANAGER – CONTRACT OF EMPLOYMENT

Surname First name(s) Date of birth

Home address

(Postcode)

Address of place of work (if not the same as operating centre)

(Postcode)

Which operating centres will the nominated TM be responsible for?All? Yes No

If no, please list individual operating centres (by first address line only)

How many hours a week is the TM contracted to work?

Will the TM be responsible for vehicles on any other licences (in any Traffic Area)?Yes No

If yes, please list details belowLicence number Vehicles/trailers authorized Hours worked per week

Declaration: In accordance with the requirements of the Goods Vehicles (Licensing of Operators) Act 1995, we declare that ........................................... will carry out all necessary checks on the operation of the licence holder’s business. We also confirm that we understand the requirements placed on both of us by the above Act.

We understand that these responsibilities include:

●● the method of control of drivers’ hours;● the maintenance of the licence holder’s vehicles, including the inspection of vehicles at

the appropriate time, the action taken to remedy defects found and the recording of these events;

● the reporting and recording of vehicle defects by drivers;● the method of compilation and the accuracy of all records kept;● the making of arrangements to ensure that the licence holder’s vehicle/s are not overloaded.

Signature (licence holder) date

Signature (Transport Manager) date




Financial StandingIn addition to these points, the TC is required under the regulations (as already stated) to establish details of the applicant’s financial standing (a bank statement, a bank manager’s letter of reference or an accountant’s certificate of solvency may be requested, for example, or other evidence of the availability of funds) because this has a bearing on the applicant’s ability to operate and maintain vehicles in a safe condition and in compliance with the law (see also pp 24–26). While considering an applicant’s financial status for this purpose, the TC also has the authority to call for the services of an assessor from a panel of persons appointed by the Secretary of State for Transport, if appropriate, due to the complexity of the financial structure of the applicant’s business or affairs. The TCs watch out for ‘O’ licence holders who are prosecuted for vehicle excise offences and those who ask for time to pay fines or request the opportunity to make payment in instalments, following conviction for offences by the courts, and they take this as good cause for investigating an applicant’s financial position.

Representations by Local ResidentsOpportunities are given to local residents individually to make representations against ‘O’ licence applications and variations on environmental grounds. Local residents are more precisely defined in the regulations as ‘owners or occupiers of land within the vicinity’ (ie of the operating centre). Those residents who wish to make representation must do so individually because group action is not permitted (although a group of individual representors may appoint a joint spokesperson, or legal representative to put forward their case), nor is representation by any environ-mental pressure group, political or other campaigning body. Similarly, parish councils, which regularly feature in such matters, have no right of objection per se unless they own/occupy land in the vicinity of an operating centre featuring in an ‘O’ licence application, in which case they may make representation as the owner/occupier of the land.

The grounds on which such owners or occupiers can make their representations are confined purely to environmental matters such as noise, vibration, fumes and visual intrusion but could include obstruction. They do not include road safety matters, which are not an environmental issue. The grounds must be stated precisely in the written representation; to state that the representation is made for ‘environmental reasons’ is not sufficient. The exact wording which forms the basis of representations is specified in the legislation in the following terms: ‘that place (ie the operating centre) is unsuitable on environmental grounds for (such use and) any adverse effects on environmental conditions arising from that use would be capable of prejudicially affecting the use or enjoyment of the land’ (ie the land owned or occupied by the person making the representation).

One of the facts that has been difficult to establish in connection with this is a definition of the term ‘within the vicinity’. It has been shown that residents living along an access road to a vehicle operating centre can be considered to be in the vicinity and adverse environmental effects of vehicles travelling along the road could be taken account of by the TC in his consideration of any environmental representations




against a licence application. Each TC is left to make his own determination of whether a representor lives ‘within the vicinity’, but as a general rule if a representor can see, hear or smell a vehicle operating centre from his property then he will be considered to be ‘in the vicinity’ for the purposes of making an environmental representation.

There is no opportunity for people living near an operating centre to make repre-sentations on grounds other than environmental matters or to use the opportunity to vent long-standing grudges against the vehicle operator. The TCs will not consider any representation which falls outside the terms described above or which is considered to be vexatious, frivolous or irrelevant or which is not signed.

Local residents will normally become aware of their opportunity to make representations against the grant of a licence or licence variation through the local newspaper advertisement placed by the applicant (see p 33). Those people wishing to make a representation must do so in writing (or have their solicitor do so on their behalf), within a period of 21 days from the date of publication of the advertisement, to the TC at the Traffic Area Office address given in the advertisement. They must also send an exact copy of their representation (ie their letter to the TC) to the licence applicant at his address, which is also given in the advertisement. Their letter must clearly state the ‘particulars’ of the matters forming the basis of their representation so that both the TC and the licence applicant may be fully aware of the specific grounds on which the representation is made. Failure to be specific as to the facts in this letter, failure to send a copy to the licence applicant or failure to submit the representation within the specified timescale will render the representation invalid.

Where the TC receives a representation based on environmental issues the normal action is for the TC to call a Public Inquiry (PI) to give all parties an opportunity to make their cases. The PI takes the form of a quasi-judicial case where both sides submit evidence and make statements to the presiding TC. The TC will often make a ruling at the time but, in some cases, may need time to clarify details or consider wider issues and not give a ruling until some time later.

Whilst representors have no right of appeal should their case against use of the operating centre fail, operators do have a right of appeal through the Transport Tribunal (see later). The rights of ‘representation’ are not to be confused with the rights of objection described later.

Suitability of PremisesTCs must inquire into and be satisfied that the place or places to be used as vehicle operating centres are suitable, cause no danger to the public, are environmentally acceptable and sufficiently large to accommodate all the vehicles authorized on the licence (or requested in the application). Local residents have rights (as described above) to make representations about the environmental consequences of the use of places for transport depots or vehicle operating centres and the TCs are bound to listen to these representations and make appropriate decisions about the application depending on the weight of the argument on either side – residents or operator (see pp 42–43). In particular, the TC, when considering the suitability of premises, will take account of the following:




●● whether danger to the public may be caused where vehicles first join (or last leave) a public road;

●● whether danger to the public may be caused on roads (other than public roads) along which vehicles are driven between the operating centre and a public road;

●● the nature or use of any other land in the vicinity of the operating centre and the effect which the granting of the licence would be likely to have on the environment of that land;

●● how much granting a licence which is to materially change the use of an existing (or previously used) operating centre would harm the environment of the land in the vicinity of the operating centre;

●● for a new operating centre, any planning permission (or planning application) relating to the operating centre or the land in its vicinity;

●● the number, type and size of the authorized vehicles (including trailers) which will use the operating centre;

●● the parking arrangements for authorized vehicles within and near to the operating centre;

●● nature and times of use of the operating centre;

●● nature and times of use of equipment at the operating centre;

●● how many vehicles would be entering or leaving the operating centre, and how often.

Reviews of Operating CentresTCs are given powers to review all operating centres, normally at five-yearly intervals counting from the date when the licence was first issued – in certain circumstances more frequent reviews may be carried out. Where the TC decides to review an operating centre he must give two months’ notice in writing. Once the period has passed for the TC making a decision to review an operating centre, the licence holder can rest assured that he is safe for another five years, unless he operates outside the terms of his licence, fails to pay fees or applies for a major variation of the licence.

When carrying out the review of a centre, which will most likely be as a result of written complaints by local residents (who may now write in at any time rather than just when a licence application/variation advertisement appears), the TC will be concerned to ensure that it remains environmentally suitable, meets road safety considerations and can accommodate all the vehicles authorized on the licence, or that their parking causes no adverse effect on the local environment.

When carrying out the review the TC may decide that no action is required, but he has powers to act if necessary. For example, if an operating centre is found to be unsuitable he may attach conditions or vary any existing conditions for road safety or environmental reasons. However, the licence holder is given the opportunity to make representations about the effect that such conditions would have on his business before they are attached. The TC also has the power to remove an operating centre from a licence for non-environmental reasons (eg on the basis of road safety considerations), or because the operating centre is environmentally




unsuitable by reason (only) of the parking of vehicles used under the licence at or near the centre.

Applications and DecisionsWhen an application for a new ‘O’ licence or a variation of an existing licence is received by the TC, details of the application (ie the name of the applicant and the number of vehicles and trailers included in the application) will be published in a Traffic Area notice called Applications and Decisions (As and Ds). As its name implies, this notice will also contain details of licences granted by the TC and details of public inquiries to be held. The notice is published either weekly or fortnightly by all Traffic Areas and may be inspected at Traffic Area Offices or purchased as an individual copy or on a regular basis. It is by means of this notice that statutory objectors (see below) are able to know when applications have been made, against which they may wish to object. They can do this within 21 days of publication of the relevant As and Ds notice. As and Ds are available for download from the DVSA website: www.dvsa.gov.uk.

Objections to the ApplicationApplications for ‘O’ licences are open to statutory objection by certain bodies listed below (and only by the listed bodies – no other individual or organization has this statutory right). Potential objectors to ‘O’ licences become aware of pending applica-tions for new licences or variations to existing licences through the publication Applications and Decisions mentioned above.

Objections to applications can only be made by the bodies mentioned on the grounds that the applicant does not meet the essential qualifying criteria for the grant of a licence: namely that the applicant is not a fit person or is not of good repute; is not of adequate financial standing or does not meet the professional competence requirements (where appropriate); that the law in respect of those matters which the TC will be considering when he is deciding whether or not to grant a licence is not likely to be complied with, namely that the drivers’ hours and records regulations will not be observed; that vehicles will be overloaded and that there are not satisfactory arrangements or facilities for maintaining the vehicles. The bodies may also object on environmental grounds (for example that the operating centre is environmentally unsuitable).

The bodies who may make statutory objection to an ‘O’ licence application are as follows:

●● a chief officer of police;

●● a local authority (but not a parish council – unless it owns or occupies land);

●● a planning authority;

●● the British Association of Removers (BAR);

●● the Freight Transport Association (FTA);

●● the Road Haulage Association (RHA);




●● the General and Municipal Workers’ Union (GMWU);

●● the Rail, Maritime and Transport Union (RMTU) (formerly the National Union of Railwaymen and the National Union of Seamen);

●● the Transport and General Workers’ Union (TGWU);

●● the Union of Shop, Distributive and Allied Workers (USDAW);

●● the United Road Transport Union (URTU).

These are the only sources of objection (not to be confused with an environmental representation) to an application for an ‘O’ licence. If any of these bodies do make a statutory objection they are required to send a copy of their objection to the applicant at his published address at the same time as sending one to the TC and this must be within 21 days of the publication of details of the application in Applications and Decisions. Failure to send a copy to the applicant renders the objection invalid.

Grant or Refusal of a LicenceThe TC has power to grant an ‘O’ licence to an applicant if he considers that all the necessary requirements are met. Alternatively, he may refuse to grant a licence or he may grant a licence for fewer vehicles than the number applied for if he doubts the ability of the applicant to be able to comply with the law with more vehicles, to be able to properly maintain more vehicles or to be able to adequately finance the operation of more vehicles. He can impose environmental conditions on any licence granted and can also refuse to accept the name put forward for the professionally competent person (in the case of standard licence applications) if he believes that the person is not of good repute. The TC may be influenced in his decision by the points made by any statutory objectors or environmental representors.

Licence Grant with ConditionsThe case made by those raising valid environmental representations may influence the TC either to refuse the application altogether on the grounds that the operating centre is not environmentally suitable or alternatively to grant the licence but with environmental conditions attached. Thus to prevent or minimize any adverse effects on the environment he may place conditions or restrictions on the licence granted under the following headings:

●● the number, type and size of authorized vehicles (including trailers) at the operating centre for maintenance or parking;

●● parking arrangements for authorized vehicles (including trailers) at or in the vicinity of the centre;

●● the times when the centre may be used for maintenance or movement of any authorized vehicle; and

●● how authorized vehicles enter and leave the operating centre.




As an alternative to imposing environmental conditions on the licence, the TC may seek undertakings from the operator that he will or will not follow certain practices in order to reduce environmental disturbance of local residents (eg control the number of vehicle movements into and out of the centre). The licence holder should be aware that any such undertakings he may voluntarily give to the TC become legally binding upon him and could result in a penalty against his licence if he subsequently fails to observe them.

Licence holders who find they have breached environmental conditions on their licence through unforeseen circumstances must notify the TC. Failure to comply with any of these conditions during the currency of a licence may result in the TC imposing penalties on the licence such as suspension or curtailment. In serious cases the licence may be totally revoked.

Where operators find that environmental conditions placed on their licence prove too onerous to allow them to run their businesses effectively they should apply to the TC to vary the conditions rather than ignore the conditions and become liable to a licence penalty.

Additional Vehicles

Seeking a MarginAt the time of making an application for an ‘O’ licence the applicant is given the opportunity to request authorization for any additional vehicles which he may need to acquire or hire during the currency of the licence. By taking this opportunity the operator saves the problems of making a fresh application when wanting to add or hire-in vehicles on a temporary basis to meet trading peaks. It also saves facing any further environmental representations or statutory objections because once the original application is granted with additional vehicles specified, extra vehicles can be added within the number authorized by completing and submitting form GV80 to the TC when they are acquired. There will be no need for the details to be adver-tised in a local newspaper or published in Applications and Decisions. They will however need to prove at the time of application that they have financial reserves for the total number of authorized vehicles.

If additional vehicles were requested and the request was granted at the time of making the original application, the operator will have a ‘margin’ for extra vehicles on the licence. As described above, the TC will need to be notified (by submitting form GV80 (revised January 2013)) from the date of actually acquiring the additional vehicles – not the date of putting them into service – so that a windscreen disc can be issued for the vehicle. From the effective date of the TAN computer system (see p 9) no goods vehicle subject to operator’s licensing should be on the road without a current ‘O’ licence windscreen disc. That said, many small operators who are not registered to use TAN are allowed up to 28 days to obtain a disc. Vehicles found without a current disc may be subject to impounding (see pp 62–63).

It is useful here to clarify the terms used in connection with the numbers of vehicles for ‘O’ licensing purposes:




Authorized vehicles – the maximum number of vehicles/trailers that the licence is actually granted to cover (it is illegal to operate* more than this number of vehicles at any time).

Specified vehicles – the actual vehicles which the operator has in possession and which are specified on the licence by registration number.

Margin – the difference between the numbers of authorized and specified vehicles on the licence, in other words the vehicles still to be acquired by the operator whether on a permanent or a temporary basis.

* ‘Operate’ in this context means ‘use’ and this applies to vehicles hired without drivers. Conversely, if they are hired with drivers, then they are operated under the hire firm’s ‘O’ licence and not within the margin of the operator’s ‘O’ licence (see below).

Hired VehiclesIf an operator plans to hire extra vehicles without drivers (ie where he intends to have his own or hired agency drivers to drive the vehicle/s) during the currency of his licence, whether for a short period (a day, a few days or even one or two weeks) or on a long-term contract, they must be covered by his ‘O’ licence and he will need to have applied for a sufficient margin of additional vehicles on his licence to cover these. If vehicles are hired within the margin the TC must be notified, and an ‘O’ licence disc obtained for display on the vehicle.

It is illegal to operate (ie to have employed drivers to drive) more vehicles (ie of over 3.5 tonnes gross weight) than are authorized on the ‘O’ licence even for a temporary period or reason (eg when an authorized vehicle is off the road for service or repairs or to cover additional delivery requirements).

Number of Extra VehiclesWhen making the request for additional vehicles on the initial application for an ‘O’ licence, the number which may be requested is not limited in any way but it is recommended that it should be in reasonable proportion to the number of vehicles already operated (or initially required) and, most important, it should only be of a number which the applicant can maintain, and prove he can maintain (both physically and financially), on the same basis as the remainder of his fleet. If the request for additional vehicles relates to vehicles that are to be hired rather than owned it must be remembered that the person who hires a self-drive vehicle is fully responsible for the mechanical condition of the vehicle in so far as safety and legal requirements are concerned.

An applicant specifying additional vehicles on the original application should give some careful thought to the exact number of vehicles which may be needed




and the reasons for needing them because the TC will ask questions about this if he calls the applicant to a public inquiry. Evidence in the form of business forecasts and trends in trade would be most useful as would figures to indicate past growth of the business; evidence also to show the financial prospects of the applicant during the currency of the licence period will help towards convincing the TC that he would be justified in granting a licence for the additional vehicles requested.

Replacement VehiclesIf for some reason an authorized vehicle ceases to be used the TC must be advised of the fact, but if at that time or later another vehicle is acquired to replace it the operator must advise the TC on form GV80 within one month of acquiring the replacement vehicle. This means within one month from the date of the vehicle coming into the operator’s possession, not one month from the date he starts to use it. Vehicles which are not removed from the licence (even when standing in a yard or workshop smashed or cannibalized) are still counted as specified vehicles and cannot be replaced by others within the authorized number on the licence until they are removed by notifying the TC and the windscreen discs are returned to the Traffic Area Office.

Surrender of LicenceAs mentioned above, form GV80 is also used when an operator wishes to surrender the whole of his licence. Question 4 on the form asks whether this is the case and requires a tick in either box ‘yes’ or ‘no’. In Section 9 of the form (ie the Declaration) it is necessary to tick boxes showing:

●● enclosure of the windscreen discs for the vehicles (Box 9a) or an indication that these have been stolen, lost or destroyed (Box 9b);

●● enclosure of the licence itself and all Community Authorizations held (Box 9c) or an indication that these have been stolen, lost or destroyed (Box 9d).

Licence Variation

If the holder of an ‘O’ licence wishes to change the type of licence he holds – for example from restricted to standard national or from standard national to standard international – or to notify a change of transport manager, an application must be made on form GV80. It is, of course, necessary to satisfy the legal requirements for standard licences, national or international, where the application is to upgrade from a restricted ‘O’ licence, particularly in regard to the professional competence require-ment. Similarly, a standard national licence holder who wishes to change to a licence covering international operations must satisfy the TC that he or an employee is professionally competent in international transport operations.




Where, during the currency of a licence, the licence holder needs to add extra vehicles to the fleet that were not specified on the original application then an application must be made to the TC by completing an application for major changes on form GV81 and submitting this well in advance (minimum nine weeks). This will necessitate placing an advertisement in a local newspaper as with the original application (see p 32).

Unless the variation is only of a trivial nature the TC will publish details of it in Applications and Decisions and it may attract objectors in the same way as a new application, and the public inquiry procedure will be the same as that already described.

The licence holder must never operate more vehicles or trailers than the total number specified on his licence. When extra vehicles are required he must wait until the application for an increase in the licence is granted before actually putting the vehicles on the road – for which he should allow at least nine weeks, being the minimum application period required.

Form GV81Form GV81 (revised February 2013) is a document called Application for Major Changes and must be used by applicants who wish to:

●● change the total number of vehicles/trailers authorized;

●● change operating centres (ie by adding another centre or stopping the use of a centre);

●● change or remove a condition or undertaking recorded on the licence (including conditions on the use of operating centres).

These changes all involve the need to advertise the application in local newspapers as previously described (see p 32) and a copy of the published advertisement must be sent with the form. The usual information regarding name and address, addresses of operating centres and the number of vehicles to be based there which are in possession now or to be acquired has to be given. Also required is similar information about vehicle maintenance arrangements to that supplied on the original GV79 application (see p 28), but in relation to any additional vehicles applied for and any changed operating centres along with any request to change any of the environmental conditions or undertakings attached to the use of the operating centres. Reasons must be given as to why this change or removal is wanted.

The form has to be signed and the applicant is warned that failure to comply with conditions or undertakings recorded on a licence can result in disciplinary action being taken against the licence holder and that failure to comply with conditions is a criminal offence.

Transfer of Vehicles

If a vehicle is transferred from the Traffic Area in which it is licensed to a base in another Traffic Area for a period of more than three months, it must be removed




from the original licence and specified on a licence in the new Traffic Area. Transfers for periods of less than three months are permitted with no need for notification to the TC provided an ‘O’ licence with a sufficient margin to cover the transferred vehicles is already held for that Traffic Area.

If the operator does not hold an ‘O’ licence in the other Traffic Area, or holds a licence in the area but it does not have a sufficient margin to accommodate the trans-ferred vehicles, then an application for a new licence or a variation of the existing licence must be made to the TC for that Traffic Area. It is illegal to operate vehicles (ie over 3.5 tonnes gvw) from a base in a Traffic Area unless a licence is held in that area.

Notification of Changes

Licence holders should notify the TC in writing, within one month, of any changes in the legal entity of their business such as a change of name, address, ownership, if a new partnership has been formed, a limited company formed or the constitution of the partnership has been changed, as this makes a material difference to the information given in answer to questions on the original GV79 licence application. The TC must also be informed if the proprietor or persons concerned in the business die or if the business becomes bankrupt or goes into liquidation.

A change of business address as given in the original licence application must be notified to the TC within 28 days. A change of operating centre (or the use of an additional operating centre) also requires a variation application using form GV81 and the need to follow the newspaper advertisement procedure before any change actually takes place – it is illegal to change or add an operating centre without first seeking the TC’s approval by the GV81 application procedure (ie to be submitted at least nine weeks prior to any change being required).

Other changes which must be notified in writing are those in maintenance facilities or arrangements and any breach of environmental conditions which the TC placed on the licence. Failure to notify the TC of such changes can have the same result as making false statements or failing to fulfil intentions stated in the original application, namely the risk of licence suspension, curtailment or revocation. The offender could also be prosecuted with the consequent penalties which can be imposed by the courts.

As mentioned earlier, the TC expects to be notified of some changes ‘as soon as possible’, other changes may be subject to a 28-day notification period and others may require the use of a specific form. Operators are advised to seek clarification on timescales for any change they intend to make, or have just made, from their local Traffic Area Office or by contacting the CLO.

Subsidiary CompaniesA holding company can include in its application for an ‘O’ licence vehicles belonging to any subsidiary company in which it owns more than a 50 per cent shareholding. But associate companies (ie where the shareholding arrangement is less than 50 per cent),




owned by the same holding company, cannot have vehicles specified on each other’s licences and separate divisions of a company are not permitted to hold separate licences unless they are separate entities in law.

The vehicles of any subsidiary company acquired during the currency of the holding company’s ‘O’ licence can, if desired, be included in the holding company’s licence either within its existing licence margin or by making application to the TC, on form GV81, to vary the licence. It is not generally likely that an application to include a subsidiary company’s vehicles on the holding company’s licence would be published in Applications and Decisions or that it would attract any objections.

Under the regulations, for the purposes of determining whether goods are carried for hire or reward in order to choose between a restricted or a standard ‘O’ licence, goods belonging to, or in the possession of, a subsidiary company are considered to belong to, or be in the possession of, the holding company and vice versa, so that in such cases a restricted ‘O’ licence would be adequate even if charges for the movement of the goods were made between the holding company and its subsidiary.

Temporary DerogationThere are provisions in the regulations to enable a standard ‘O’ licence to remain in force for up to one year initially and a further six months (maximum derogation is 18 months), if the TC feels it is appropriate, should the specified professionally competent person named on the licence die or become legally incapacitated (ie unable to carry out his duties due to reasons of mental disorder), in order to allow a replacement person to be found and specified.

The regulations enable the TC to defer revocation of, or refusal to grant, a standard ‘O’ licence in the event of the death or incapacity of the holder of the licence, a transport manager or a partner whose professional competence is relied upon. Further, in the event of the death or incapacity of the licence holder the TC is empowered to authorize another person to carry on the business during the changeover period as though that person was the licence holder. Also, the TC may allow time for a transport business to be transferred to another person licensed to carry it on or for a transport manager or new partner to be appointed.

Where a person who was carrying on a business as a licence holder dies, becomes mentally incapacitated, becomes bankrupt or goes into liquidation, or where a partner-ship is dissolved, the TC must be notified ‘as soon as possible’. The person carrying on the business will be considered by the TC to be the holder of the licence while the required changes are made.

Production of ‘O’ Licences

Operator’s licence holders must produce their ‘O’ licence (form OL 1 plus vehicle disc form OL 2*) for examination when required to do so by the police, DVSA examiners (ie certifying officers) or by the TC or a person with his authority. The holder has 14 days in which to present the licence either at one of the operating




centres authorized on the licence or at his principal place of business in the Traffic Area. In the case of production to the police this can be at a police station of the holder’s choice also within 14 days.

* It is an offence to have a vehicle disc that cannot be read (faded by sunlight, etc) and faded or damaged discs need to be replaced before they become unreadable.

TCs’ Powers of Review

TCs have statutory powers (under the Goods Vehicles (Licensing of Operators) Act 1995, section 36) to review and, if they see fit, to vary or revoke any decision they have previously made to grant or refuse:

●● an application for an operator’s licence; or

●● an application for the variation of an operator’s licence requiring publication.

These powers to review a previous decision apply only in the following circumstances:

●● if, within two months, the TC has given notice to the applicant or the licence holder that he intends to review the decision;

●● if, within two months, a person who appears to the TC to have an interest in the decision has requested him to review it;

●● where neither of the above situations apply, if the TC considers that there are exceptional circumstances to justify a review.

Variation or revocation of any previous decision by the TC does not make unlawful any actions relying on that decision before the variation or revocation imposed at the review comes into force.

Normally the TC will only decide to review his previous decisions where he is satisfied that a procedural requirement was not complied with in making the decision; for example, where an environmental representation or statutory objection was overlooked, or a decision was made under the wrong section of the Act.

This facility for the TCs to review their own decisions eliminates many of the situations which, hitherto, would have required appeal to the Transport Tribunal.

Penalties against ‘O’ Licences

WarningThe TCs have warned that they are taking a harder line than ever before against ‘O’ licence offenders – this after being described for years as being no more than ‘paper tigers’. In particular, operators are warned to pay more attention to their licence applications and what they are undertaking to do as operators. When dealing with licences the TCs are primarily concerned with road safety, fair competition and the environment.




PenaltiesThe maximum fine which may currently be imposed by a court for running vehicles without an ‘O’ licence where one is required by law is £5,000 (ie level 5). Failure to notify the TC of certain information about relevant convictions incurred by the licence holder or by his professionally competent transport manager can result in fines of up to £2,500 on summary conviction.

The TCs, as the issuing authorities for goods vehicles licences, are also given con-siderable legal powers to revoke, suspend or curtail an ‘O’ licence for a large number of reasons, of which the following are a few of the important examples:

●● contravention by the licence holder of the provision, in the case of standard ‘O’ licences, regarding professional competence requirements;

●● failure to notify the TC of changes in the business;

●● convictions for failure to maintain vehicles in a fit and serviceable condition;

●● contravention of speed limits, overloading or offences in connection with loading or unloading vehicles in restricted parking or waiting areas;

●● failure to ensure that drivers are correctly licensed;

●● convictions relating to the use of rebated (duty-free) fuel oil in vehicles (see Chapter 8);

●● failure to keep records relating to vehicle inspections and repairs and driver defect reports;

●● falsely stating facts on applications for ‘O’ licences and not fulfilling statements of intent or environmental conditions placed on the licence;

●● if the licence holder becomes bankrupt or, in the case of a company, goes into liquidation;

●● if a place not listed on the licence is used as a vehicle operating centre.

Offences are committed, for which prosecution and a court appearance may follow, if a:

●● windscreen licence disc is not displayed;

●● change of address is not notified;

●● licence is not produced for examination on request;

●● duplicate windscreen disc is not returned if the original is found;

●● disc is not returned when a vehicle is disposed of;

●● subsidiary company featured on a holding company licence is disposed of and the TC is not advised.

Furthermore, the TCs are active in preventing speeding by LGV drivers, first by imposing a penalty of suspension on the LGV driving licences of offending drivers and then by penalizing the ‘O’ licences of firms whose drivers persistently and wilfully exceed speed limits. Evidence of such matters is mainly obtained during routine enforcement checking of tachograph records, where recordings showing frequent instances of driving above 100 kph are clear evidence of breach of the 60 mph maximum speed limit for vehicles exceeding 7.5 tonnes maximum laden weight.




Usually, the offending licence holder will be called to public inquiry by the TC and be required to explain why the offences occurred and what action is being taken to put matters right or to ensure they will not happen again. Depending on his reaction to such explanations, the TC may initially give a warning about future conduct and the likely consequences if there is any repetition of the contraventions of the law or he will decide that an appropriate penalty should be imposed. This will be suspension, curtailment or premature termination of the licence, or revocation. If the licence holder is found to no longer comply with the basic requirements for ‘O’ licensing, namely good repute, financial standing or professional competence, then the TC must revoke the licence (except where a period of temporary derogation is permitted – see below). If a restricted ‘O’ licence holder is convicted twice in a period of five years of operating outside the terms of the licence his licence must be revoked.

Curtailment (vehicles removed from a licence) is the most commonly imposed penalty and this implies removal of one or more authorized vehicles from the licence for any period up to the expiry of the licence. Suspension involves suspension of the whole licence and this may be combined with premature termination so the TC can review the whole operation under the provisions for consideration of a new licence application. As with premature termination of an existing licence, the need to apply for a new licence places the operator at risk of objection and environmental repre-sentation. The TC can direct that a vehicle on a licence which has been suspended or limited may not be used by another operator for a maximum of six months during the period of suspension. The increasing trend by TCs to impose short, sharp two-week ‘O’ licence suspensions is showing itself to be effective against errant operators, and is generally approved by the Transport Tribunal.

When the TC revokes an ‘O’ licence – which is not done lightly – he may order the holder to be disqualified, for a certain period or indefinitely, from holding or obtaining an ‘O’ licence and the order may be limited to one or may apply to more Traffic Areas. When intending to disqualify a person from holding an ‘O’ licence the TC should warn him of the likelihood, explain the circumstances leading to this decision and allow the person the opportunity of making submissions against disqualification. Following an order to revoke a licence, the TC may allow the licence holder to request a ‘stay’ to enable the operation to continue until an appeal to the Transport Tribunal is heard.

Revocation of Licences for SmugglingLicence holders who are convicted of smuggling and related offences – mainly resulting from the illegal importation of excessive quantities of tobacco and alcohol products – risk losing their ‘O’ licences in addition to facing the standard penalties such as substantial fines, imprisonment in more serious cases and confiscation of vehicles. Where ‘O’-licensed vehicles are involved in cross-Channel smuggling activities, HM Revenue & Customs pass details of the operators involved to the TCs for action which could include revocation of licences.

Tough new measures to combat smuggling include £1,000 penalties to recover confiscated vehicles, and permanent confiscation in the case of repeated smuggling offences. Drivers caught smuggling may also lose their driving licences and in serious




cases individuals risk a prison sentence on conviction for evading alcohol and cigarette duty.

NB: An HM Revenue & Customs hotline is available for reporting excise duty smuggling – Freephone 0800 595000. Alternatively, it is possible to call Crimestoppers on 0800 555111.

Revocation of Licences for Using Unlicensed Sub-contractorsIt is essential for ‘O’-licensed hauliers to check carefully that any sub-contractor used is correctly licensed (as well as determining that he is using roadworthy vehicles and complies with the law on such matters as drivers’ hours and tachographs). The use of an unlicensed operator may result in prosecution for aiding, abetting, counselling or procuring that operator to use a vehicle for hire or reward without an ‘O’ licence. This is a criminal offence carrying a maximum fine of £5,000 on conviction and could result in loss of the principal contractor’s ‘O’ licence.

Loss of Licence for Unpaid FeesIt is worth repeating here that failure to pay ‘O’ licence fees when due will result in automatic termination of the licence.

National Electronic RegistersOne of the key provisions in Regulation 1072/2009/EC (Article 16) was the requirement for all EU Member States to establish a National Electronic Register of data relating to road transport undertakings. In the UK this was being undertaken by the DVSA. The essential data in the register is as follows:

a the name and legal form of the undertaking (ie whether sole trader, partnership or limited company);

b the address of the business;

c the names of the transport managers designated to meet the conditions of good repute and professional competence or, as appropriate, the name of a legal representative;

d the type of authorization (ie ‘O’ licence), the number of vehicles it covers and, where appropriate, the serial number of the Community licence and of the certified copies;

e the number, category and type of serious infringements, as referred to in Article 6(1)(b) – see p 22 – which have resulted in a conviction or penalty during the last two years;

f the name of any person declared to be unfit to manage the transport activities of an undertaking, as long as the good repute of that person has not been re-established and the rehabilitation measures applicable (eg additional training).




Since 2012, the relevant data above must be available upon request or directly accessible to all competent authorities of Member States and the requested information must be provided within 30 working days of receipt of the request. The data referred to in points (a) to (d) above must be publicly accessible, in accordance with the relevant provisions on personal data protection.

In any case, the data referred to in points (e) and (f) may only be made accessible to authorities other than the competent authorities where they are duly endowed with powers relating to supervision and the imposition of penalties in the road transport sector and their officials are sworn to, or otherwise are under a formal obligation of secrecy.

Data concerning an undertaking whose authorization (ie ‘O’ licence) has been suspended or withdrawn must remain in the national electronic register for two years from the expiry of the suspension or the withdrawal of the licence, and must thereafter be removed immediately.

Data concerning any individual person declared to be unfit for the occupation of road transport operator must remain in the national electronic register as long as the good repute of that person has not been re-established. Where such a rehabilitation measure or any other measure having an equivalent effect is taken, the data must be immediately removed.

The data referred to above must specify the reasons for the suspension or withdrawal of the ‘O’ licence or the declaration of unfitness, as appropriate, and the corresponding duration of the suspension.

Protection of Personal DataArticle 17 of Regulation 1071/2009/EC requires that Member States must ensure that:

●● All persons are informed when data relating to them is recorded in the register or is planned to be forwarded to third parties. The information provided shall specify the identity of the authority responsible for processing the data, the type of data processed and the reasons for such action.

●● All persons have a right of access to data relating to them held by the authority responsible for processing those data. That right shall be exercisable without constraint, at reasonable intervals and without excessive delay or cost for the applicant.

●● All persons whose data are incomplete or inaccurate have the right to have those data rectified, erased or blocked.

The Upper Transport Tribunal

Inquiries and AppealsTCs regularly hold public inquiries (PIs) to which ‘O’ licence applicants are called to explain the basis of their operations. A PI enables a TC to seek more information prior to determining whether he should grant a licence or not. In the event of a representation on environmental grounds or an objection being made to a licence




application the TC will hold a public inquiry at which the parties (applicant, objectors or those making representations) will have an opportunity to state their case further. If the application is refused in whole or in part or if environmental conditions are attached to a licence the applicant has rights of appeal against the TC’s decision to the Administrative Appeals Chamber of the Upper Tribunal, using form UT12, within one month of the decision being made (see below). Normally an existing licence will remain in force while an appeal is being heard and the TC may allow a revoked or suspended licence to continue during this time. If the TC refuses this the Tribunal can be asked to allow it to do so.

Statutory objectors also have a right of appeal to the Tribunal if an application for a licence is granted and they still feel that their objection is valid. Those individuals making representations on environmental grounds have no similar right of appeal if their case fails.

It should be noted that the Tribunal is the only source of appeal in regard to ‘O’ licensing matters.

Besides public inquiries conducted for the purposes of determining ‘O’ licence applications, such inquiries are also held at the TC’s behest where it is necessary for him to examine the conduct of a licence holder for disciplinary purposes under the powers given him by the Goods Vehicles (Licensing of Operators) Act 1995. Section 26(1) of this Act empowers him to conduct such inquiries and impose penalties of suspension, curtailment or revocation of a licence (further details of this matter are given on pp 53–56).

Appeals are heard only in London whereas public inquiries are usually held in the town or city in which the TC’s office (ie the Traffic Area Office – see Appendix I for addresses) is situated.

Public InquiriesIt is useful here to mention in more detail the way in which a public inquiry (PI) is conducted. It is presided over by the TC or his deputy and is open to members of the general public, other operators and interested persons, who may sit in and listen, and to the press, who may report all that is said.

TCs may restrict general attendance at a PI to protect an operator’s business, particularly in regard to personal matters, commercially sensitive information and other information obtained in confidence. Hitherto the TC could only close a PI to hear financial information. Further, TCs must disclose at a PI any information or evidence received in writing prior to the inquiry if it is intended that such information is to be taken into account in reaching a decision.

Verbal evidence is given to the TC by the applicant or by his legal representative if he has one – and this is strongly advised in most cases due to the complexities of making legal presentations and arguing points of law in a courtroom situation and possibly the need to cross-examine witnesses such as a vehicle examiner or an environmental representor, even though it is an inquiry, not a court. In fact, the ‘call-up’ letter to operators facing public inquiries, in which the TC states his reasons for calling the PI and states his powers to curtail, suspend or revoke ‘O’ licences, as well as giving details of the time and location for the inquiry, advises




this. Such advice, if it is required, should be sought from an experienced transport lawyer who fully understands the legal basis of the whole licensing system as well as the intricacies of the PI system.

Most evidence at PIs will be given in response to the TC’s questions – the TC effectively playing the role of ‘prosecutor’ – by the licence holder/applicant, the objectors and those making representations. The evidence, unlike in criminal or civil courts, is not given under oath and statements made at a public inquiry that are defamatory or libellous of other people do not have protection by privilege. The offended person can take civil action if such statements or comments come to his notice. Similarly, if an applicant or witness lies, he will not be prosecuted for perjury, but, where this is an applicant, anything he says in support of his application may be taken by the TC to be a statement of intent to which he will be bound for the duration of any licence granted.

Evidence in some instances may be provided in writing and the TC may ask for certain supporting documents, in which case the applicant should have these to hand with extra copies for the objectors to examine. When he has heard all the evidence the TC will normally make a decision without conferring with anybody else. He may announce this at the time or defer his decision to be given later in writing. The entire proceedings of the inquiry will be recorded and transcripts can be obtained by interested parties.

TCs must now give at least 21 days’ written notice of public inquiries both to operators and other parties entitled to attend, and similar notice if they intend to vary the time or place of the inquiry. However, given the consent of all parties, this requirement can be varied.

Appeals to the Administrative Chamber of the Upper TribunalThe Tribunal, which is under the control of the Lord Chancellor, is a completely independent judicial body supported administratively by the Ministry of Justice. The Tribunal is made up of legally qualified legal members and non-legal members, who have experience in transport operations and its law and procedure. Its offices are in London. Initially, all hearings are normally arranged in London.

An appeal on form UT12 to:

Upper Tribunal Administrative Appeals Chamber Traffic Commissioner appeals 7th Floor, Victory House 30–34 Kingsway London WC2B 6EX Telephone (9am – 5pm) – 020 3077 5860 Fax – 020 3077 5836 E-mail – [email protected]

may be made against a TC’s decision to refuse to grant an ‘O’ licence if he attaches environmental conditions to an ‘O’ licence; if a licence is granted authorizing fewer




vehicles than the number applied for; if a licence is granted for a shorter period than that applied for; or if an existing licence is withdrawn, suspended or prematurely terminated by the TC.

A time limit of 28 days is allowed in which to make an appeal to the Tribunal following a TC’s decision, counting from the date of publication of the issue of Applications and Decisions in which the decision is published.

Should the decision not be published, or not be released to the appellant, after a period of 21 days following the date the decision was made, the appellant has a further 49 days to lodge an appeal.

Where a TC makes a disciplinary decision against an ‘O’ licence (ie suspension, curtailment or revocation) and the licence holder wishes to appeal, he can apply for a ‘stay’ of the decision until the appeal is heard, in order to keep his vehicles operating. Otherwise he would have to observe the decision irrespective of the consequences (financial and operational) on his business. An initial request for a ‘stay’ of the decision is made direct to the TC, but failing this an application must be made immediately to the Tribunal giving details of the decision and the reason for requesting the ‘stay’. Application for a ‘stay’ of the decision cannot be made if there is no intention to appeal.

Appeals to the Tribunal must be in writing and should be sent to the Tribunal stating the decision against which the appeal is made, the grounds for the appeal, and the names and addresses of every person to whom a copy of the appeal has been sent. Advice and relevant forms can be obtained by contacting the Tribunal at the address above or by downloading them from the Tribunal’s website: www.justice.gov.uk/about/hmcts.

Copies of the appeal must be sent to the TC and to all objectors if the appeal is being made by a licence applicant, or to the applicant if the appeal is being made by an objector to the decision.

Although the Tribunal has the powers and status of the High Court, its proceedings are conducted informally and appellants may represent themselves or be represented by any person they choose (there are no wigs and gowns even for barristers present). However, in the best interests of the applicant, he should be legally represented at an appeal by a solicitor or barrister experienced in transport law to ensure that his case is fully and correctly made.

When an appeal is heard, the Tribunal examines the transcript of the public inquiry or the TC’s statement of his reasons for the decision against which the appeal is lodged and then may ask further questions of the applicant or his advocate. No oath has to be taken and there is no protection by privilege. The proceedings are open to the public and the press. Tribunal appeal decisions may be announced at the hearing or later. All parties will be sent a full statement of the decision usually within three weeks of the hearing.

Generally, Tribunal decisions will fall into one of three categories: either to uphold the TC’s decision, to change the decision or to refer the matter back to the TC with a direction that he should reconsider his decision but taking account of legal guidance from the Tribunal. In exceptional circumstances the Tribunal may review its decision subject to a request to do so made within 14 days of the appeal hearing. Decisions of the Tribunal are binding from the date they are given; in other words they have immediate effect.




Further appeals against decisions of the Tribunal may be made to the Court of Appeal or the Court of Sessions in Scotland but only on points of law, not on the original decision of the TC or the subsequent ruling of the Tribunal. The address is:

The Civil Appeals Office, Room E307, The Royal Courts of Justice, Strand, London WC2A 2LL. E-mail: [email protected]

Information on applying to the Court of Session in Scotland is available under the Rules of the Court of Session, which can be found at: www.scotcourts.gov.uk.

No fees are payable in respect of appeals but costs may be awarded against frivolous, vexatious, improper or unreasonable appeals.

Further details of the appeals procedure can be found in a free publication giving guidance on appeals to the Tribunal, and can be downloaded from its website at http://www.justice.gov.uk/about/hmcts.

Northern Ireland Licensing

Northern Ireland commenced its own UK-style ‘O’ licensing system in July 2012 under provisions contained in the Goods Vehicle (Licensing of Operators) Act (Northern Ireland) 2010. The Northern Ireland ‘O’ licensing scheme mirrors the UK scheme as described in this chapter.

Goods vehicle operators in the Province do not need to obtain a short-term ‘O’ licence prior to entry into Great Britain. Similarly, there is no need for Great Britain operators to obtain a short-term licence prior to entry into Northern Ireland. A goods vehicle operating on a current ‘O’ licence issued in Great Britain or a Road Freight ‘O’ licence issued in Northern Ireland is permitted to carry goods throughout the UK.

Goods vehicles from Northern Ireland engaging in own-account operations for which a Road Freight Operator’s licence is required in the Province must, while operating in Great Britain, carry a document showing details of their load and route in Great Britain.

Vehicles based and registered in England, Wales and Scotland must comply with all the normal legal requirements (eg vehicle condition, excise duty, insurance and observance of traffic rules) set out in this Handbook when operating in Northern Ireland, but particularly so in regard to ‘O’ licensing (Chapter 1), professional competence (Chapter 2), drivers’ hours and record-keeping regulations (Chapters 3 and 4), tachographs (Chapter 5), driver licensing and testing (Chapters 6 and 7) and plating and testing (Chapter 14). It should be noted that in regard to road traffic and road traffic offences there are differences between the Northern Ireland requirements and those on the British mainland. A separate edition of the Highway Code (new edition, 2014) is published for Northern Ireland and is free to download at the ni-direct.gov.uk website.




Vehicles based and operated in Northern Ireland must comply with the law as it applies in the Province, which is substantially similar to that applicable in the rest of the United Kingdom. Further information may be obtained from:

The Department of the EnvironmentTransport Regulation UnitBedford House16–22 Bedford StreetTown ParksBelfast BT2 7FDTel: 028 9025 2983website: www.doeni.gov.uk/tru

Conditions for Grant of ‘O’ LicenceUnder the statutory requirements for the grant of a road freight operator’s licence, an operator has to satisfy the issuing authority that he is:



●● professionally competent or that he employs a full-time manager who is professionally competent and of good repute.

The requirements of good repute and appropriate financial standing are as stated in detail in this chapter of this Handbook. The professional competence requirement in Northern Ireland is as explained in Chapter 2.

Since 2012 the criteria relating to the holding of a licence, the validity of a licence (continuous) and most of the exemptions from licensing in Northern Ireland now align with those in the rest of the UK. The main difference is that the licensing regime is controlled and administered by the DoE and not the DVSA.

Note: This ‘coming together’ is seen by some professionals as preliminary alignment prior to Northern Ireland becoming either a Traffic Area in its own right or an extension of the Scottish Traffic Area controlled by the DVSA.

Northern Ireland Penalties for Illegal UseMaking a false statement to obtain the grant of a road freight operator’s licence or a road freight vehicle licence is an offence punishable on conviction by a fine or imprisonment for up to six months, or both. The ‘O’ licence could also be suspended or revoked. Use of a motor vehicle on a road for the carriage of goods for reward without a road freight vehicle licence can result in a fine which increases for subsequent convictions. Since February 2011 enforcement officers of the Northern Ireland Driver and Vehicle Agency (DVA) have been empowered to issue fixed penalty notices, some of which attract penalty points on driver licences, for certain driver and vehicle offences see www.dvani.gov.uk.

Northern Ireland Powers to StopUnder new regulations applicable both in Northern Ireland and Great Britain (ie The Road Vehicles (Powers to Stop) Regulations 2011 – SI 2011 No. 996) from 30 March




2011 appointed ‘stopping’ officers (eg enforcement officers of the NIDVA and DVSA and certain police officers) are given the power to require the driver of a commercial vehicle to stop for the purposes of examining the vehicle and /or the drivers’ documents and records – see also pp 85 and 414.

Use of Light Goods Vehicles

Many existing transport operators and new entrants to the industry have sought to avoid the problems and pitfalls of ‘O’ licensing by using vehicles defined as ‘small’ vehicles – those vehicles not exceeding 3.5 tonnes maximum permissible weight. With such vehicles there is no need to obtain an ‘O’ licence and consequently no need to face the TC and satisfy all the conditions previously explained. The operator is also free from the legal requirements under other legislation for his drivers to operate tachographs or to keep other written records of their hours of work, and to hold vocational driving licences.

Despite this apparent freedom the operator of such vehicles does have certain obligations and responsibilities. First, if he tows a trailer for hire and reward only with such a vehicle the combined weight of both vehicle and trailer (if over 1,020 kg unladen) could exceed the 3.5 tonne weight threshold above which an ‘O’ licence would be needed and the provisions of the EU or British drivers’ hours law and the relevant record-keeping or tachograph requirements may apply (see Chapters 3, 4 and 5). Second, if he also operates, or plans to operate in the future, larger vehicles which are within the scope of ‘O’ licensing, his conduct as an operator of small vehicles will be taken into account by the TC when deciding whether to grant or renew his ‘O’ licence.

The TCs have made the point that when an operator applies to renew an ‘O’ licence they (the TCs) would take notice of any relevant convictions in respect of smaller vehicles belonging to the operator and could call the operator to public inquiry to show cause why the ‘O’ licence should not be revoked or curtailed. The operator of small vehicles still has to ensure that vehicles are not overloaded and that they are kept in a safe mechanical order under other regulations; they must be tested annually after they become three years old (four years old in Northern Ireland). Drivers of these vehicles are required to observe the drivers’ hours regulations with certain exceptions. All these individual legal exemptions and requirements are discussed in later chapters.

Foreign Vehicles in the UK

Vehicles entering Great Britain from other EU member states under valid Com-munity Authorizations do not need an ‘O’ licence and no longer require cabotage authorization to operate in this country. Vehicles from certain non-EU countries where a bilateral agreement exists are exempt from the requirement to hold an ‘O’ licence under the Goods Vehicles (Licensing of Operators) (Temporary Use in Great Britain) Regulations 1996.




Foreign vehicles entering Great Britain under an ECMT permit do not need an ‘O’ licence provided the permit is being carried on the vehicle.

Impounding of Trucks

Impounding of goods vehicles – estimated to number some 8,000+ vehicles a year – came into force on 4 January 2002. Principally, impounding applies to vehicles used for hire or reward carriage without an ‘O’ licence in force. Such vehicles are fitted with an immobilization device (ie a clamp) either on the spot or after removal to a more suitable site, and will be marked by an immobilization notice warning against any attempt to remove the device or move the vehicle except under proper authorization. Impounded vehicles may be returned to their owner in due course provided specified conditions are met, and loads returned to their owner where title is established. Ultimately, however, without satisfactory compliance with requirements for the release of a vehicle and its load, they will be disposed of by sale or by destruction. Obstruction of authorized examiners in the course of vehicle impounding will lead to a fine at level 3 (maximum £1,000) on conviction.

An appeals procedure via the TCs initially and the Transport Tribunal subse-quently allows operators to apply for the return of an impounded vehicle, although this may be unsuccessful depending on the circumstances.

Impounding of Rental/Hired VehiclesThe impounding legislation described above has caused concern for vehicle rental, hiring and leasing companies. However, the law is clear in that the regulations permit the seizing of vehicles hired out by such firms to unlicensed operators. The TCs too have made it clear that such firms have a duty to ensure that any hiring arrangement they enter into in relation to relevant (ie over 3.5 tonne) vehicles is with an ‘O’ licensed operator. The situation becomes more complex where a vehicle leased to an unlicensed operator by a vehicle leasing company is subject to a finance arrangement with a third party (such as a bank or loan company), which is therefore the statutory owner of the vehicle. In such cases, it becomes necessary for the legal owner to make application to the TC for the return of the vehicle on the basis that it, the legal owner, did not know that the vehicle had been, or was being, used without an ‘O’ licence in accordance with the Goods Vehicles (Licensing of Operators) Act 1995 (section 2). An application for the return of a vehicle in these circumstances has to be made within 21 days of the notification of the impounding being published in the London Gazette or Edinburgh Gazette (in which all vehicle impoundings are published).



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