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21/06/10

The change that's been looked for for years - O Licensing Review Summary



Release to: Coach Journals
Date: June 2010
Title: O Licensing Review summary

( THIS IS A MUST READ FOR ALL NORTHERN IRELAND OPERATORS )

I am sure there are many coach and bus operators in Northern Ireland , not least the members of the Federation of Passenger Transport NI , Ltd , (formerly the Northern Ireland Independent Coach Operators Association) who thought that the review of Operator Licensing in Northern Ireland would never actually happen.  Well , it has !  and not before time either. 

We know that for the past eight years , the FPT NI  Chief Executive and  its Executive Committee and members have worked long and hard to make sure that there was a review.  They have banged on doors, met ministers and civil servants, argued and pushed to have the current system reviewed and their dogged determination has paid off. The Department of the Environment (DOE) launched  the consultation document on the 1st June  planned proposals for the  future of bus operator licensing in Northern Ireland.  In truth, it is probably fair to say that without FPT NI the review might never have taken place !.

I am sure that those of you reading this article are well aware of the fact that the 1967 Transport Act which regulates the passenger transport in Northern Ireland , is outdated,  discriminatory and completely inadequate in terms of protecting passengers.  The consultation is therefore very welcome news and at least some reassurance that the industry is now moving forward and that in the near future passengers will be protected as there will be greater screening of operators , high standards of safety for all passengers and greater powers for the enforcement authorities to deal with non compliant operators.

The DOE through the Driver and Vehicle Agency (DVA) is responsible under the Transport Act (NI) 1967 (The Transport Act) for granting a Road Service Licence (RSL) to passenger transport operators who wish
to carry passengers by road for reward. The RSL applies to a vehicle (buses and minibuses) designed or adapted to carry nine or more passengers for hire or reward.

The RSL is composed of two elements:

· Fitness to be in the industry.
· The routes/ services buses operate on.

Currently the DOE and the Department for Regional Development
(DRD) share responsibility for transport policy.

Under the Transport Act DOE has the powers to regulate the bus
industry in terms of the criteria that must be met to enter the industry (i.e.
those applicable to the bus operator) and also for controlling the routes
and services that an operator can provide.DRD is bringing forward new legislation to allow them to regulate services.  This consultation, however details initial proposals by DOE to replace the existing RSL with a more modern bus operator licensing regime. This will create a licensing regime which is flexible, transparent and supports fair competition in the industry. It is likely that new primary legislation will be required to support the regime described in this
consultation.

PROPOSALS
The Department is considering introducing the following improvements:

· A more streamlined structure of licences to avoid the confusion that exists at present.
· Better management of the licensing process by the Department to allow fairer application of the rules governing the licensing of passenger transport.
· Improved enforcement procedures to ensure fairness across the industry.
· Greater clarity in the industry for operators, their vehicles and drivers as to the requirements and rules of licensing.

A number of options for future operator licensing are set out below with advantages and disadvantages for each listed; and while the Departments preference is identified, we would like your comments on all of the options.

OPTIONS FOR LICENSING

Currently there are three options:-

Option 1 - Do nothing.

This is not a realistic option as the Department recognises that the existing licensing regime is not able to accommodate the needs of a modern bus industry.

Option 2 – A single Licensing Regime

Create a single licensing scheme for all. The existing operator licensing regime would be extended to cover all bodies currentl operating under 10B permits.

The Department is aware that one size does not fit all. 

Option 3 - New 3 Tier Licensing Regime

Develop a new, more flexible, regime based on a three tier licensingsystem.

Tier 1 would be full bus operator licensing and would essentially takethe same form and have largely similar requirements as the existingoperator element to the Road Service licence. A full licence would
cover a bus operator for all potential commercial bus transportservices.

Tier 2 would make greater use of restricted operator licences. Here anapplicant would have to meet the same repute, vehicle and driverlicensing requirements as for a full licence but lesser financial and competence requirements. The licence would restrict the operator to operating minibuses (9 – 16 passenger seats). These operators would be able to pay their drivers and cover their operating costs.

Tier 3 would be a scheme with similar aims and objectives as 10B permits but would take the form of a licence rather than an exemption. An applicant would be responsible for ensuring that repute requirements are met. Groups operating appropriately within the 10B permit would be unlikely to notice any difference. Transport would be
an ancillary activity for the group, not the main function.

Option three has many advantages not least that it would be a completely transparent system which would be fully enforceable as all tiers would have specific conditions set out in regulations. It would contribute to road and passenger safety as it would require that all vehicles were suitably maintained and licensed and all drivers appropriately licensed.

Tier 1 – Full Bus Operator Licence
Competence – the Operator or Transport Manager must be professionally competent i.e. they must hold ‘CPC for National or International Passenger Transport Operations’. Operator, Partners, Transport Manager, Directors etc (all
persons named on the application) must meet good repute requirements and supply Access NI Basic Disclosure Certificates.

Finance – the Operator must provide proof of sufficient finances to
launch and administer the business in accordance with EC
requirements.

Operating Centre – Operators must have a suitable operating centre to keep vehicles when they are not in use (vehicles are not permitted to be parked overnight on public roads).

Vehicles – must:
Have NI Public Service Vehicle (PSV) test certificate/disc;
· Have bus vehicle excise duty disc (TAX);
· Have hire or reward Insurance specifying vehicle registrationmark(s); and
· Be properly maintained.

Drivers – must have:
· Full category D or D1 Driving Licence; and
· ‘Driver CPC’ qualifications.
This licence gives the operator unqualified access to the industry in that it allows them to compete for services.

 Tier 2 – Restricted Bus Operator Licence

Competence – No compulsory competence requirement.

Repute – Operator, Partners, Managers, Directors etc (all persons named on the application) must meet good repute requirements and supply Access NI Basic Disclosure Certificates.

Finance – an operator will be required to provide proof of sufficient finances to ensure the upkeep of the vehicle and the operating centre.

Operating Centre – Operators must have a suitable operating centre to keep vehicles when they are not in use (vehicles are not permitted to be parked overnight on public roads).

Vehicles – must:
· Have a NI Public Service Vehicle (PSV) test certificate/disc;
· Have a bus vehicle excise duty disc (TAX);
· Appropriate insurance specifically for their type of operation; and
· Be properly maintained.

Drivers – must have:
· Full category D or D1 Driving Licence; and
· ‘Driver CPC’ qualifications.
Under this licence an Operator will be able to make a not for profit charge to pay their drivers and cover their operating costs.

 Tier 3 –Voluntary Groups Operator Licence

Repute – an applicant would be responsible for ensuring that reputerequirements are met.

Operating Centre – Operators must have a suitable operating centre to keep vehicles when they are not in use (vehicles are not permitted to be parked overnight on public roads).

Vehicles – must:
· Have an appropriate vehicle test certificate;
· Have a bus vehicle excise duty disc (TAX);
· Have appropriate insurance for their type of operation; and
· Be properly maintained.
Drivers will be required to have the appropriate category of drivinglicence. Under the permit / licence the voluntary groups can only transport their own members and cover the running costs of the bus.

CARRIAGE OF ALCOHOL ON BUSES
The Department proposes to make it a condition of the licence that theOperator makes arrangements for the separate carriage of alcohol on buses.

DESIGNATED BODIES
The Department intends to bring all tiers of licensing within its control. This will mean that the existing “designated bodies” would no longer have the power to issue permits.

CONTINUOUS LICENSING
At present Road Service Operator Licences last for 1 year. The
Department intends to move to continuous licensing for bus operators.
Under continuous licensing, licences are reviewed regularly and
operators are asked to confirm the details of the licence. The
Department has discretion to review the suitability of the Operating
Centre at the same time. Vehicles will continue to be tested and
licensed annually.

10 VARIATION OF LICENCES
Under the new arrangements, it will be possible to remove vehicles from an existing licence and add others on, provided the total vehicle authorisation is not exceeded. However, the addition of extra vehicles in excess of the number authorised, or the change of, or addition of a new operating centre, will
be regarded as a major variation to an Operator’s Licence, which would
require a new application.