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From Norfolk RCC
Paper from the DTI on understanding the needs of young people with regard to transport
Changes to PHV licensing - repeal of contract excemption
I was approached at the North Norfolk Transport Forum by a car scheme, worried about the repeal of the contract excemption and potential consequences for voluntary car schemes. It will not affect schemes.
The current discussion is about the legal robustness of the below wording: Qte from the DfT consultation document: 23.' The Department's view is, that the phrase 'for hire' in the definition of a PHV implies that there must be an element of commercial benefit to an arrangement for PHV licensing requirements to apply. As a consequence of this we consider that services provided by genuine volunteers, who receive no recompence or receive onlyenough to cover their actual expenses are unlikely to satisfy the definition of a PHV. Therefore in our view such services would not have needed to rely on contract exemption to avoid PHV licensing requirements and as such its repeal will not affect them.
24. The particular point has been raised whether voluntary car schemes will be affected by the repeal of the contract exemption. It is our understanding that many such schemes involve the payment of separate fares and as such fall outside the PHV licensing regime. The repeal of the contract exemption will not change this.
The CTA has said they would prefer to see a different wording for para 24. along the lines of:
The particular point has been raised whether voluntary car schemes will be affected by the repeal of the contract exemption. It is our understanding that the majority of such schemes operate under car sharing rules, which involve the payment of separate fares. Car sharing rules state, that as long as the fare or aggregate of the fares paid in respect of the journey does not exceed the running costs of the vehicle for the journey; and the arrangement for payment of the fares by the passenger or passengers so carried were made before the journey began, the vehicles operation will fall outside both the PSV and PHV licensing regime. The repeal of the contract excemption will not change this. Margrete@norfolkrcc.org.uk 16:43, 14 September 2007 (BST)