Community Transport

Maggie Throup Excerpts

Thursday 10th May 2018 Westminster Hall

[Lilian Greenwood]

My hon. Friend is right. Many community organisations, some very successfully, have achieved greater self-sufficiency and sustainability by cross-subsidising what can be thought of as core community transport services with income from contracts for school and social care transport, for example.

And so to the bombshell of last summer. At the end of July, in what the Department seems to have hoped would be a relatively innocuous letter from a senior official to issuers of section 19 and section 22 permits, it set out a new approach, which was contrary to the official guidance that had been applied for decades but in line with a new interpretation of EU regulation 1071/2009, which has been in force since 2011. This is the crux of the matter: there is a potential misalignment of the relevant sections of the 1985 Act and its associated guidance and practice, and EU law.

The European regulation defines three derogations from the operator and driver licensing requirements on the mainstream commercial sector: where organisations are engaged in road passenger transport services exclusively for non-commercial purposes; where they have a main occupation other than that of road passenger transport operator; and where organisations have only a minor impact on the transport market because of the short distances involved. Member states can choose whether to apply the third derogation.

The Department’s letter noted the findings of a DVSA investigation into the licensing arrangements of an individual community operator in Erewash, Derbyshire—I see the hon. Member for Erewash (Maggie Throup) is present. Essentially, that investigation, which was conducted in response to a complaint from a commercial operator, found that as the operator in question held a number of competitively tendered local authority contracts, it could not be considered to be operating for non-commercial purposes.

[Maggie Throup (Erewash) (Con)]

Is the hon. Lady aware that to date this is the only case that has been brought forward in response to this letter issued by the DFT?

[Lilian Greenwood]

Yes, the hon. Lady is right—absolutely. For years, guidance and practice in the UK had considered “not-for-profit” and “non-commercial” to be interchangeable terms. The DVSA investigation and the DFT’s letter signalled a completely new interpretation. The consequence for the operator investigated by the DVSA was that it could no longer operate on the basis of community transport permits, because—according to the new interpretation—the derogations from full public service vehicle operator and passenger carrying vehicle driver licensing did not apply.

--- Later in debate ---

[Maggie Throup (Erewash) (Con)]

It is a pleasure to serve under your chairmanship, Mr Davies. I, too, congratulate the hon. Member for Nottingham South (Lilian Greenwood) on securing the debate.

As I reflected when I led a Westminster Hall debate on this issue back in December 2015, community transport occupies a unique central ground between the passenger transport industry and the voluntary sector, providing innovative solutions to the otherwise unmet transport needs of local residents. Figures suggest that Erewash Community Transport alone generates £1.3 million of social value for the communities in which it operates. We all agree on the importance of these types of transport services run for and by our community, so the changes made to the guidance with regard to section 19 and 22 permit holding organisations are particularly concerning.

The problem appears to have arisen as an unintended consequence of what is, in my opinion, poor EU regulation, rather than any specific action taken by Her Majesty’s Government. Where operators such as Erewash Community Transport are affected, Ministers have announced that they are making £250,000 available to help to fund advice for those drivers requiring a public service vehicle licence. Ministers have also issued new guidance to the Driver and Vehicle Standards Agency to ensure that a proportionate approach is taken to enforcement for operators who demonstrate that they are working towards that compliance. I accept that this situation is far from ideal, but from conversations that I have had with the Minister, it is evident that the Government are doing everything they can within the scope of the law to mitigate this issue.

As part of the Select Committee’s evidence-gathering process, it heard oral evidence from the chair of Erewash Community Transport, Mr Frank Phillips. Although I cannot say that Frank and I always see eye to eye on everything, as he also serves as a local Labour councillor, we have a shared passion for the community transport sector and agree with members of the Transport Committee that the social value of what these organisations do in providing essential community-based transport services to vulnerable people who would otherwise suffer isolation is paramount. I am confident that the Minister shares that view and would urge him to continue in his efforts to negate the negative impact of the revised directive and to look at what further steps his Department can take to ensure the continued success of a sector that benefits my constituents in Erewash, as well as the wider community as a whole.