PSV Operator Licensing
Introduction
As far as Passenger Vehicle Operations are concerned, the law governing the licensing of them is similar to those affecting goods
vehicles, the licensing system is administered by the same Traffic Commissioners via the same office network. The implications for
failure to ensure that drivers of PSV's adhere to their drivers hours regulations (regardless of the type of rules) and that
vehicles are maintained within the bounds of the issue of the said license are as stringent for PSV operators as they are for those
operators of goods vehicles.
Unlike goods vehicle operators, there are also other specific rules/requirements which affect PSV operations. Rules that are unique to PSV operations include, passenger behaviour and the registration of passenger services.
Licensing - General Information
The operator of a public service vehicle used on a public road for the carrying passengers for hire or reward has to hold a licence. A
PSV license is required regardless of whether the type of service operated are local services or national/international coach journeys.
Any operator who fails to comply with the requirements of Operator Licensing will face the same penalty as an operator of goods vehicles,
a fine up to £2,500. Asides from the authorities taking a 'dim' view of any operators failure to adgere to the conditions under
which their license is issued, there is the real risk of the operators insurance being invalidated for non-compliance.
It must also be remembered that 'Hire and Reward' operations will also effect the elegibility of who can drive the vehicles being operated and is dictated by the type of license the driver holds, in much the same way as certain licenses in the goods vehicle sector are defined by the gvw of the vehicle(s) operated. Equally so, there are some operations such as those run by non-profit organisations that fall within the definition of hire and reward but come under the scope of permit regulations (Section 19 and 22 permits). For these not for profit organisations, there may not be a requirement to obtain a PSV license, However, if this is the case, the organisation in question will have to apply for a permit as indicated previously.
A 'Public Service Vehicle' (PSV) means a motor vehicle (not a tramcar) which is;
- adapted to carry nine or more passengers (excluding the driver) and is used for carrying passengers for hire or reward; or
- if not so adapted is used for carrying passengers for hire or reward at separate fares and in the course of a business of carrying passengers. This does not cover situations where total fares do not exceed the total running costs and payment was arranged before the journey began (for example, a club hiring an eight seater vehicle and agreeing to split the cost). Other hire or reward operations may fall within the scope of the Hackney Carriage rules, in which case, it is advisable that the operator checks with the local taxi licensing authority (usually the borough or district council).
The three Acts that govern PSV operator licensing are:
- Public Passenger Vehicles Act 1981
- Transport Act 1985
- Deregulation and Contracting Out Act 1994
These three Acts should be read in conjunction with one another. The 1981 Act is the primary legislation for PSV operator licensing, but it has been amended by several sections of the Transport Act 1985 and by sections 58-69 and Schedule 14 of the Deregulation and Contracting Out Act 1994.
License Types
There are four kinds of licence, which are;
- a standard licence - for national and international operations;
- a standard licence - for national operations only;
- a restricted licence - for small operations only; and
- a special licence - for holders of taxi licences only
Standard License
Standard licences are used by most full time commercial operators. To get a standard licence you, or your transport manager, must satisfy
the requirement of professional competence. If the requirement of professional competence is met for both national and international
operations, you can get a standard international licence. This allows you to take passengers abroad as well as to operate in Great Britain.
If you or your transport manager can only claim professional competence for national operations, you will only be able to get a standard
national licence. There are also other requirements you must meet before your licence is granted.
Restricted Licence
Restricted licences are used by small scale operators since they only allow the operator to use one or two vehicles. Neither of these
vehicles must be constructed to carry more than:
- 8 passengers; although vehicles carrying up to 16 passengers may be used if either:
(a) the vehicles are not used as part of a passenger transport business (eg. they are used in connection with a hotel business), or
(b) your main job is not the operation of PSV's which are able to carry 9 or more passengers (ie. the operation of the minibuses is a side-line and not your main occupation).
You do not have to satisfy the requirement of professional competence to get a restricted licence, but all other requirements are the same as for a standard licence. You must apply in the same way, and obey the same rules.
Special Licence
A special licence can be granted only to someone who already holds a taxi licence. Its only use is to let a licensed taxi operate on a
local service. The way you apply and all the other rules are quite different from all other types of licence.
For further information relating to Special Licenses, use the link below and also read 'A guide to local bus service registration'
(PSV353A) and/or 'A guide to London local service licensing' (PSV383) as appropriate.
Satisfying the Requirements
For a standard or restricted licence you must satisfy the Traffic Commissioner that you are of good repute;
The Traffic Commissioner will look at any relevant convictions that either you or any employees have had in the last five years. He may
also take into account any other matters which affect your good repute, including those brought up by any objectors to your application.
Lack of frankness about convictions on the application form or non-disclosure of convictions incurred during the life of the licence
will constitute a grave threat to the continuation of any licence once the matter comes to the attention of the Traffic Commissioner.
Any employee who holds the professional competence qualification must also meet the good repute requirement;
You must prove you are of appropriate financial standing (ie. have enough money to run the business);
The Traffic Commissioner will need to make sure that you have enough money to run your business properly. The money can be in the form of a
bank or building society balance (statements for the last 3 months will be required) an overdraft facility (supported by a letter from the
bank manager) or convertible shares.
If you are applying for a standard international licence, you must have available capital and reserves equal to or exceeding the aggregate
of:
- 9,000 Euro for the first or only authorised vehicle, and
- 5,000 Euro for each additional authorised vehicle
You must prove you have good enough facilities (or arrangements) for maintaining your vehicles;
Your vehicles must be properly maintained, and the Traffic Commissioner will look very closely at your arrangements to make sure that they
are good enough;
You must ensure that both you and your staff obey all the rules;
The Traffic Commissioner will need to make sure that you and your staff are able to obey the rules which cover speed limits, proper
insurance of vehicles and especially drivers' hours rules.
Further Reading
For further information on the License application process and rules on drivers hours regulations for PSV drivers, please use the links
below.
PSV375 Drivers Hours & Tachograph Rules for Road Passenger Vehicles
