A restricted operator’s licence is only appropriate for the carriage of the operator’s own goods (i.e. the goods are the property of the business or, in the case of a company that entity or its parent or subsidiary) and on their own account (i.e. no more than ancillary to the overall activities of the undertaking).
So, where an operator only carries goods that are (or become and then remain) the operator’s own property, a restricted licence may be appropriate.
Defining the purpose of the operation
The courts have stressed the importance of looking at the purpose of the operation.
For instance, the recovery of vehicles does not include the return of that vehicle from where it has been repaired.
Where a predominant part and purpose of the operation is the transportation of goods, that is likely to fall within the definition of hire or reward.
Where the transport is part of the operator’s wider business, such as converting or processing of the goods, as opposed to simply conveying them to another place, a restricted licence may be suitable.
The Traffic Commissioners use the following examples to illustrate how the operation of the individual operator is relevant:
- Builders Merchants – these operations will normally require only a restricted licence, provided that the predominant part of business is selling its goods and ownership of the property transfers upon delivery. However, if the business is mainly a warehouse operation and transport of goods is, or becomes, a major part of that business, it may fall into the standard category.
- Sewage removal – if processing is involved, it tends to indicate restricted operations, but this may depend on the degree of change in the nature of the waste. If the operation predominantly involves the removal of waste (for instance water) to third-party premises or a treatment unit, it is likely to require a standard licence. If transported to the operator’s own premises as part of its treatment services, this indicates that a restricted licence may be sufficient. If the types of operation alter between journeys, a standard licence would be required.
- Skip operations – to comply with environmental protection legislation, ownership of the contents usually transfers upon collection of the skip, but the degree of processing is also relevant. The production of a waste processing certificate will usually indicate that some form of processing takes place. That involves access to premises and facilities for those purposes. If transported to the operator’s own premises for processing, this indicates that a restricted licence may be sufficient.
- Scaffolding – operators carrying their own material, where the transport is ancillary to the purpose of their scaffolding business, will require a restricted licence.
- Recovery operations – this has been considered by the Upper Tribunal. Recovery may be authorised under a restricted licence but that does not include the return of that vehicle, after it has been repaired, which would require a standard licence.
Determining the correct type of licence can be a question of fact and degree. Ownership of the goods can be relevant to determining the type of licence required, but the courts have said we should also look at the business model and what was involved in the transport activity.
Answering in the affirmative to the following is likely to suggest that the operation was for “hire or reward”, for which a standard licence would be required:
- Is the transport of the goods a predominant part of the business or service provided?
- Does the operator hold, and rely on when carrying those goods, a type of insurance policy that covers carriage of goods for reward?
- Does the carrying result in payment, direct or indirect, which benefits the owner or user of the vehicle?
Contact Jared Dunbar for guidance on complying with Transport Law matters or preparing for Public Inquiries.