Limo companies caught out by SVA issues

My spies tell me that a there are a good number of limo firms out there that have not managed to meet the deadline on the 1st January 2008 to register their business for private hire and there are a number of reasons for this.

There are 3 options for registration, a PHV Licence which is issued by the local councils, a Bus Operators Licence or in the case of London, a PHV Licence issued by the Public Carriage Office. However, all of these organisations require that the limousine have a SVA certificate before they will allow it to be licensed. The problem here is, when many of the limos were imported into the country, an SVA was not necessarily required, but now that the rules have been tightened, it is nigh on impossible for a limo to get a retrospective SVA. So the limo companies are in limbo. They can sell the limo and buy one with an SVA, apply for a voluntary SVA with all of the technical details and vehicle specifications that are required, not to mention the expense. They could operate illegally or simply give up and become a train driver.

Even those who have an SVA or have overcome this obstacle are still not out of the woods. Many limo operators have discovered to their cost, that the process to licence the business, cars and drivers is a long one and each part of the process must be completed in order. So, something that many limo businesses thought would take a few weeks, has often taken months and the result is, that come the 1st January, some companies have still not managed to complete the process. It is difficult not to feel some sympathy for these individuals and companies, but that must be countered by the fact that there has been almost 18 months notice of the change.

It remains to be seen as to how many limo companies will be affected and what their response will be, some may opt for a career change or take a sabbatical whilst waiting for the licenses to come through, but you can bet your bottom dollar that a few will carry on trading.

Good luck if you are looking for a licensed limo in London

Rumours are abound that in January 2008, there are less licensed limo companies in London, than there were last year. Now that may surprise industry pundits, given there was a change to the law which came into force on the 1st January 2008 which required all limo companies to register their business for hire or reward. In London these companies should have registered their businesses with the Public Carriage Office.

So what has happened, have they decided to throw in the towel? Well no.... it seems that many have decided to re-package their limo business, offering limousines for hire on a self-drive hire basis, with the requirement that the customer then employs their own driver, the limo company will have a list of drivers that the hirer can choose from and the customer must pay the driver themselves. Voila! No need to licence with the PCO, no need to employ drivers that have been CRB checked, no need to worry about those enhanced vehicle tests.

Is there anything the PCO enforcement officers can do? Probably not! Can the Department for Transport do anything, yes, they could address the legislation, but they probably won't. So what will happen next? If the unlicensed minicab drivers in London get wind of this, maybe they could also use this tactic to allow them to collect fares legally. They could borrow their mate Harry's car, then go around London picking up customers, all they have to do is get the punter to sign a contract that says they are hiring the car from his mate Harry on a self-drive basis and then they can employ the unlicensed minicab driver to take them to their destination. Ludicrous yes, but why not, if the limo bosses have found a workaround, why not the unlicensed minicabs?

The transport agencies have known about this self-drive hire business for nearly 2 years, it is a pity they didn't consider this when they made the changes to the RTA, once again, the general public are let down by the very people who are entrusted to protect us.

Limo companies outmanoeuvre new private hire legislation

Rather than licence their businesses, limos and drivers, it would appear that many limousine companies have simply decided to opt for the self-drive hire route. Briefly, this is where the customer agrees to hire the limo on a self-drive basis, but "employs" the services of a professional chauffeur to drive the limo. The hirer must pay the chauffeur direct and in some cases, will also be expected to pay for fuel as well. The arguments as to whether or not this is legal have a momentum of their own, but the bottom line is VOSA have done nothing, that tends to speak volumes, or maybe they just can't be bothered.

So despite the best endeavours of the Government to safeguard the travelling with the amendment to the Road Traffic Act, some (maybe many) limo bosses have simply changed the way they operate their business. So it looks like an own goal for the Department for Transport, ironic given it had taken them so long to improve the legislation in the first place.

Pity the poor individuals and companies that have spent their hard earned money to comply with the revised Act, only to find that they may as well spent it on a good holiday and set up a self-drive hire business instead.