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PostPosted: Sat Jan 23, 2010 18:45 
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Road Haulage Association Appalled By New Cash Requirements For Truckers
5th Jan 10
EU Requirements mean Increased Cash Reserves Required – but RHA Also Face Problems

UK – The Road Haulage Association have expressed their objection in the strongest possible terms after the Department of Transport declared any company plying for hire and reward under normal licences must now have cash reserves 30% above what was formerly required. Previously a freight haulier was required to show cash reserves of £6,200 for the first vehicle in a fleet then £3,400 for each subsequent truck. The revised figures, in place from the 1st of this month are £8,100 and £4,500 respectively.
The increase is due to the devaluation of the pound against the Euro over the past year or so. The Department of Transport are implacable and state that under the European Directive (96/92/EC) any EU state which does not have the euro as its currency must revalue under a fixed formula every five years.
Geoff Dunning, RHA Chief Executive said, “This increase represents one of the biggest bombshells ever to hit UK transport operators. In the current economic climate, an increase of any kind will have a detrimental effect; this substantial hike could have a catastrophic effect on our industry”.

He went on to say the organisation was ready and willing to guide its members through the financial requirement process. Additionally it was in discussion with the Senior Traffic Commissioner as to how the rules should be applied by Traffic Commissioners countrywide and with the Department for Transport requesting they approach the European Commission with a view to delaying implementation of the changes which amount to an extra burden for hauliers in troubled times.
The RHA statement continued, “In a submission made before Christmas, the RHA stressed that it had no desire to see operators running trucks that they could not afford to operate safely. However, the current financial standing rules go well beyond that. Meanwhile, we have noted to both Government and the Traffic Commissioners that the financial standing requirement for restricted licence holders remains unchanged at £3,100 and £1,700. The fact that the UK has chosen to freeze the level for such firms to avoid further regulatory burden underlines the harshness of the financial burden that is now being imposed”.

In other RHA news the organisation must appear before an employment tribunal In Surrey to answer a claim of unfair dismissal by an employee who was among several laid off at the Association’s Weybridge HQ last year when they reorganised and shifted responsibilities for various duties to Peterborough.
The organisation’s pension fund is said to have shown a shortfall of £1.6 million when, like many similar schemes, it was revalued at the end of 2007. No one at the RHA was available for comment on the matter at the time of going to press.

I totally fail to understand why this Country's Politicians are allowing these rules in for our Industry. Foreign run outfits I understand this is less of an issue for them.
When foreign trucks that enter this Country can be less capable and often far less safe are allowed on our roads it seems very unfair on UK outfits. The new policy to allow LGV's in too is mad, considering that ALL our whole road structure would have to be upgraded to take the extra weight !
I think ALL trucks that are in this Country or those that come in have to abide by our current rules and reg's and have to pass all driver tests in this Country too. Is that a fair comment ? Should our truck driver travelling abroad have to take tests in other Countries too?

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PostPosted: Sun Jan 24, 2010 15:17 
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Does anyone know why there is a cash reserve requirement on truck operators?

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PostPosted: Sun Jan 24, 2010 17:32 
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I don't know how it came about but as I have understood it - it is to do with the truck operator being about to 'prove' the ability to ensure the lorry safety in case anything ever goes wrong - totally pointless but there maybe more too this. I think that this helps their insurance have to check -sry.

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PostPosted: Sun Jan 24, 2010 17:53 
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I wonder when all this came about? My dad used to be a haulage contractor with approx 20 lorries before he died in 1973, obviously the sort of money being talked about here would have bought a small village (based on the cost being laid out now) in those days.

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My views do not represent Safespeed but those of a driver who has driven for 39 yrs, in all conditions, at all times of the day & night on every type of road and covered well over a million miles, so knows a bit about what makes for safety on the road,what is really dangerous and needs to be observed when driving and quite frankly, the speedo is way down on my list of things to observe to negotiate Britain's roads safely, but I don't expect some fool who sits behind a desk all day to appreciate that.


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PostPosted: Sun Jan 24, 2010 21:11 
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An extra lever to join the Euro ,perhaps -thinking along the lines that hauliers have a voice .Or something similar to the underhand tactic played on Cadbury some years ago by tring to get their product renamed as cocoate or something similar .

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Drivers are like donkeys -they respond best to a carrot, not a stick .Road safety experts are like Asses - best kept covered up ,or sat on


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PostPosted: Sun Jan 24, 2010 23:09 
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Botach,

"Vegelate" - lovely!

On the subject in hand, did this come about because many small transport operators were so poorly funded that they were skimping on maintaining their vehicles? (Of course, there would not have to actually be any evidence for this, just some bureaucratic suspicion.)

If so, why aren't taxi firms required to have the same cash reserve funding?

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PostPosted: Sun Jan 24, 2010 23:37 
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malcolmw wrote:
Botach,

"Vegelate" - lovely!

On the subject in hand, did this come about because many small transport operators were so poorly funded that they were skimping on maintaining their vehicles? (Of course, there would not have to actually be any evidence for this, just some bureaucratic suspicion.)

If so, why aren't taxi firms required to have the same cash reserve funding?



We don't get many foreugn taxi firms operating in this countyr -but we do get a lot of EU truckers over here .Being a bit sceptical , that's why I posed the choc parallel .( oh ,and I've got a sticky space key)

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Drivers are like donkeys -they respond best to a carrot, not a stick .Road safety experts are like Asses - best kept covered up ,or sat on


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PostPosted: Mon Jan 25, 2010 14:51 
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Taxi licence applicants in Southampton had to prove they had funds before they went in a draw to get newly created liscences and had to provide a disabled access white taxi. The second hand price of a licence is normally about £25k.

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“It has never been the rule in this country – I hope it never will be - that suspected criminal offences must automatically be the subject of prosecution” He added that there should be a prosecution: “wherever it appears that the offence or the circumstances of its commission is or are of such a character that a prosecution in respect thereof is required in the public interest”
This approach has been endorsed by Attorney General ever since 1951. CPS Code


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