Select Committee on Public Accounts Twenty-Eighth Report


3 Enhancing the provision of electronic licensing to the public

18. Electronic relicensing for fleet operators was introduced by the Agency in 1994 and motor dealers have been able to license new vehicles on their first registration since 1997.[46] Electronic services for the individual motorist have not been addressed, except for a telephone relicensing scheme which has not expanded beyond its pilot stage.[47] The Agency argued that the results of customer surveys show that the public like to use the Post Office to relicense their vehicles.[48] In any comparison with other government organisations that transact directly with the public on a large scale, the Agency is well behind in broadening customer choice through the introduction of electronic arrangements for the public to conduct its business.[49]

19. The Agency accepted that it should make available a wider range of choices of payment channels.[50] The introduction of Electronic Vehicle Licensing (EVL) from February 2004 will start to address the issue, but in the first phase will only be available to customers who do not need to produce a valid MOT for the vehicle being relicensed. Later in 2004, this service will be expanded to deal with transactions for cars that do require an MOT.[51]

20. The earlier introduction of EVL for the public had been hampered by difficulties surrounding charges for the use of credit and debit cards. The Agency has no statutory permission to hypothecate any of the revenue collected to cover the transaction costs levied by card companies and it was unsuccessful in getting this matter addressed in either of the last two Finance Bills.[52] The Agency has not acted with sufficient urgency or done all that it could to open up electronic transaction channels for the motoring public.

21. The Agency's targets are to conduct 23% of the public's relicensing transactions by electronic channels by 2006 and to have increased this to 37% by 2016. The Agency recognises fully that some members of the public will always prefer a face-to-face service and it is committed to retaining this type of service alongside its electronic channels.[53]



46   C&AG's Report, para 13 and Figure 2 Back

47   ibid, para 18 Back

48   Qq 3-4, 114 Back

49   Qq 105-114 Back

50   Q 105 Back

51   C&AG's Report, para 18; Qq 2-4, 114  Back

52   Q 107 Back

53   Qq 4, 114 Back


 
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