New financial requirements will reduce hauliers’ burdens
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OPERATORS NO longer need as much money in the bank to meet the financial standing requirements for an O-licence – thanks to the weakened Euro.
Under EU regulations the rates are set each year and from 1 January next year operators will need £7,700 for the first vehicle and £4,200 for each additional vehicle, a reduction from £8,100 and £4,500 respectively.
The Office of the Traffic Commissioner uses the exchange rate published in the Official Journal of the EU on the first working day of the previous October. The level for 2012 is based on €1 to £0.85.
The requirement for restricted licences remains unchanged at £3,100 for the first vehicle and £1,700 for additional vehicles.
The Road Haulage Association (RHA) welcomes the move. “It’s a more realistic valuation,” says RHA director of policy Jack Semple. A survey of RHA members showed that cash flow, finance, poor roads and congestion headed their concerns.
However, Paul Arthurton, owner of Paul Arthurton Transport in Attleborough, Norfolk believes the cuts will make little difference. “I run 14 vehicles and will need £4,300 less. It’s about 5% – it’s not as though they’ve halved it.”