Earl Atleeasked Her Majesty's Government:
What level of funds is a prospective goods vehicle operator required to have available for his first vehicle: and whether those funds can be used to effect repairs or whether it is a requirement for a minimum, but unusable, level of cash or other liquid asset. [HL4498]
§ Lord WhittyEU Directive (98/76/EC) on access to the road haulage profession came into force in the UK on 1 October. Prospective international operators of goods vehicles now require 9,000 euro (£6,500) to be available for their first or only vehicle and 5,000 euro (£3,500) for each subsequent vehicle. Existing international operators have until 1 October 2001 to comply. In assessing applications for domestic operator licences, Traffic Commissioners normally assess the appropriate level of funds to be 80 per cent of the international financial levels for standard national licences and 50 per cent of the international levels for restricted licences.
These funds are required to satisfy Traffic Commissioners that there is adequate money available to maintain the vehicles in a fit and serviceable condition and, in the case of standard operators, additionally to ensure the proper administration of the business. If these funds are used, for example to meet the cost of emergency repairs, then the reserve would temporarily reduce but the operator would be expected to replenish it within a reasonable period of time.