APPENDIX 9
Memorandum submitted by the Freight Transport
Association
Freight Transport Association represents the
freight transport interests of businesses throughout the UK. Its
members range from small and medium size enterprises to multi-national
public companies and are involved in all modes of transport. FTA
members operate over 200,000 heavy goods vehicles, about half
the UK fleet, are responsible for 90% of freight moved by rail
and 70% of goods shipped by sea and air. This unique multi modal
mandate enables FTA to speak authoritatively on all aspects of
freight based on the broader transport needs of industry in the
economy.
FTA welcomes the opportunity to provide the
Select Transport Committee with its views regarding the Department
for Transport's Executive Agencies' Group. FTA and its members
work closely on an on-going basis with staff and executives from
the Driving Standards Agency (DSA), Driver and Vehicle Licensing
Agency (DVLA), Vehicle and Operator Services Agency (VOSA) and
Highways Agency (HA). Generally speaking FTA has a good relationship
with these agencies that is found to be both co-operative and
consultative. There are, however, several areas of concern the
industry has with regards to the operation of these Agencies that
we would like to bring to the attention of the Select Transport
Committee.
Specifically, on behalf of our members we provide
comments on the following issues:
— Government agenda and industry needs;
— interpretation of legislation and
intent of legislation;
— communication between agencies, with
Government and stakeholders; and
— reduction of administrative burdens.
GOVERNMENT AGENDA
AND INDUSTRY
NEEDS
Overall, FTA believes that the current allocation
of responsibilities for the DVO Executive Agencies is appropriate
and has resulted in the Agencies' ability to meet internal targets
set in the Business Plans. FTA does, however, believe that there
is a gap between the implementation of Government's agenda and
the needs of the industry. Furthermore, that the evolving role
of Agencies has resulted in a need to revise the allocation of
some responsibilities in order to better reflect the policy objectives
of the Department of Transport and, therefore, the national economy.
For example, the change in the HA's role from network provider
to network manager in order to improve journey time reliability,
requires the allocation of additional responsibilities.
FTA is supportive of the overall strategic priorities
for the Department of Transport's Executive Agencies, and agrees
that Agencies should set policy that improves services for customers,
protects all road users and improves the value for money of the
services delivered. It is unclear, however, to FTA how some Agencies
contribute to this overall objective. An example we draw to the
Committee's attention is the HA's contribution to the Department's
objective of providing an efficient and reliable inter regional
transport system. We do not believe that the HA's internal targets
readily translate into the Department's objective of supporting
the economy. We also believe that it is difficult to show how
congestion is being reduced and, therefore, provide evidence of
any improvement of reliability of the strategic road network.
Furthermore, FTA believes that while, generally
speaking, Agencies typically meet the key performance indicators
set in Business Plans, these are of an internal operational nature
and are not reflective of the needs of all customers.
For example, FTA believes that from an operational
perspective VOSA is working well towards achieving its key performance
indicators. There is, however, need for a regular review of set
targets to ensure they are reflective of customer needs, including
extensive consultation with stakeholders to ensure these are indeed
met. An example of such consultation that needs to occur on an
ongoing basis is reflective in the work between VOSA, FTA and
other stakeholders to develop a series of Service Level Agreements
to assist in improved standards by all parties. FTA encourages
VOSA to continue such review and consultation with stakeholders
on a regular basis and that all Agencies work towards a process
where targets are set following extensive discussion with customers
to ensure they reflect the needs of the customer.
FTA also suggests a need for further improvement
of HA's targets. While the HA has met all operational targets
set in its business plan for the 2004-05 fiscal year, it is our
position that journey time reliability should be the real measure
used to assess the HA's performance. The HA must have the responsibility
of not only improving journey time reliability, but must have
in place a robust method of assessing its performance against
such measure. For example, with the introduction of the HA's Traffic
Officers, it will be necessary to develop key performance indicators
that show how that part of its work is delivering the necessary
improvements in journey time reliability. Going forward, it will
be necessary to show that the significant investment in the service,
designed to ensure that the network is operating at its maximum
efficiency, operates in a practical way. Significant improvements
should be made in the way that motor incidents are dealt with
on the strategic network and that traffic is kept moving by efficient
management of incidents. FTA also recommends a process of consultation
between the Department for Transport, HA and industry regarding
Service Level Agreements to better facilitate transparency
for all parties.
Another issue of concern is the Government policy
of enforcement paid for mainly by compliant operators. Overall,
FTA favours the existing funding arrangement approach for Agencies
on a user pay basis. We do, however, have a concern where non-compliant
operators, who either do not hold an Operators Licence or do not
have vehicles tested, pay nothing towards the cost of enforcement
efforts. For example, regarding the enforcement activities of
VOSA foreign vehicles do not pay towards the cost of roadside
enforcement, therefore, FTA recommends that Government should
reimburse VOSA for the expense incurred in foreign vehicle activity.
The revenue from fixed penalties and graduated deposits should
be remitted to VOSA so that the cost of enforcement is borne by
the non compliant rather than compliant operators.
INTERPRETATION OF
LEGISLATION AND
INTENT OF
LEGISLATION
While the DVO Executive Agencies work co-operatively
and consultatively with the industry, there are times when Agency
interpretation of legislation does not reflect the intent of the
legislation. Experience has demonstrated that at times an Agency
may put its own interpretation on legislation in order to fit
its own purpose or without any regard to addressing a particular
issue. FTA also believes that Agency interpretation of legislation,
at times, does not take into consideration industry standards
and best practices as a means of ensuring regulatory compliance
by industry.
Furthermore, FTA believes that some Agencies
should be more proactive in addressing issues before they become
a compliance issue, creating more tools to address issues at an
early stage and provide guidance to industry. For example, VOSA
has both an enforcement and advisory role. FTA believes, however,
that VOSA should more proactively utilise its advisory capacity
to provide industry with legislative guidance at an early stage
in order to prevent non-compliance in the first instance, and
therefore the need for enforcement action.
COMMUNICATION BETWEEN
AGENCIES, WITH
GOVERNMENT AND
STAKEHOLDERS
FTA believes that for Agencies to remain transparent
and accountable there is a need for on-going communication both
between Agencies and with stakeholders. It is important that wherever
possible Agencies work closely together eliminating any unnecessary
silo approach to policy development. It is also important for
the Department of Transport to ensure that it consults broadly
across all Agencies when establishing funding allocations, setting
targets or allocating responsibilities. This ensures that the
long-term strategic objectives of all agencies are considered
to provide the maximum benefit of services to customers. This
has not always happened—for example, Department funding
for the Safe and Fuel Efficient Driving initiative did
not link into the DSA's longer term strategic objectives—and
FTA recommends going forward mechanisms be put in place to ensure
broad consultation across all Agencies.
FTA also suggests that there is a need for better
communication between Agencies and Government to ensure that there
is a clear understanding of the needs of all Agencies. For example,
the HA must better ensure that Government clearly understands
the need to increase the allocation of resources for spending
on the strategic network. FTA recommends a process where the HA
can indicate to Government where that spending is required for
improvements to the network. We also recommend that this information
should be available publicly in order that national interests
can see where the spending is required.
Furthermore, while overall FTA and its members
maintain a close and communicative working relationship with Agencies,
there are times where the lack of transparency and communication
has resulted in a misperception of Agency activities. For example,
during recent years the HA has been required to undertake a significant
amount of research regarding the way it operates the strategic
road network. Delays created in bringing about improvements through
such research has resulted in a misperception that the HA has
been unable to bring about network improvements. FTA encourages
all Agencies to transparently communicate all initiatives, including
changes and delays with such initiatives, in a timely manner.
REDUCTION OF
ADMINISTRATIVE BURDENS
FTA and its members are supportive of initiatives
intended to reduce the regulatory burden for businesses, including
Government's commitment to Better Regulation and the work
of the Administrative Burdens Reduction Monitoring Group, and
the commitment to produce departmental plans for simplification
to be published at the Pre-Budget Report 2006. We are encouraged
by Government's work in this area and support its application
to the regulatory reporting requirements of the freight transport
industry.
FTA supports a modern and flexible approach
to the transport regulatory framework in order to ensure that
the freight transport industry remains competitive. As such, we
welcome Government initiatives that examine the way legislation
is administered to reduce the burdens on businesses while maintaining
adequate regulatory protections. FTA favours any initiatives that
can reduce the administrative burdens on businesses and wherever
possible eliminate any duplicative regulatory reporting. For example,
it is our understanding that at least 300 pieces of transportation
legislation have been identified by consultants working on the
Administrative Burdens Reduction Monitoring Group on behalf of
the Department for Transport, and that this legislation contains
1,700 information requirements. For the freight transport industry,
providing the mechanisms for co-ordination of systems and sharing
of information between Agencies could be beneficial to operators,
as there would be no need to provide the same information to several
Agencies, therefore minimising unnecessary administrative burdens
and ensuring that operators remain competitive in the marketplace.
9 January 2006
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