Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 60-79)

DEPARTMENT FOR TRANSPORT & DVLA

17 OCTOBER 2007

  Q60  Mr Mitchell: So it is the underclass.

  Mr Bennett: It is the people who treat their cars as vehicles to use without actual registration.

  Dr Hickey: There is a definition of them which is in the report.

  Mr Bennett: There is a definition.

  Dr Hickey: Basically it is putting together a number of indicators. The indicators are people who have been untaxed for three months, so it is not somebody who has just forgotten for a month or two, three months untaxed; or between keepers for three months, so it is a car that I sold but there is no registered keeper who has allegedly bought it, so it has disappeared somewhere; or the keeper has no postcode so although we think we have a keeper, regrettably we cannot actually find them; or they have a number plate but it is not on the record, it is some funny number that has been invented; or, your point I think, it is a number plate that applies to a different model; or it has been declared scrapped but actually it is not scrapped, it is still driving around. The definition of the underclass is a vehicle that falls within any one of those six categories.

  Q61  Mr Mitchell: Okay. You catch up with that from your own records, has this thing been registered or taxed, but also from observation. When I go round estates canvassing I often see this kind of car there which is there when you are canvassing and at the next election as well, it does not appear to have moved.

  Dr Hickey: That is why local authorities as well as ourselves are very keen to do something.

  Q62  Mr Mitchell: I have written to you about a case in Grimsby of a poor chap who bought a car which turned out to be reconstructed from a wrecked car but was sold to him with a replacement logbook issued by you and tax disc issued by you. He then found that the number plate on those documents was for a car in a salesroom in Chesterfield which was SORN'd or whatever you call it, not a sawn-off shotgun, and that had been registered with you and this never emerged from your system. Do your computers not talk to each other? How can that happen?

  Mr Bennett: I honestly do not know and on the specific case I cannot say. If somebody has rebuilt a car basically it would have to go for re-inspection and the re-inspection would trigger off the ability to re-register that vehicle, so it should have been checked, and very often they are visibly checked as well. I cannot comment on the specific case because I do not know how it happened but if they had gone through the process it would have gone through a routine process which the local offices would cover. It could be illegally put together and maybe illegally registered, I do not know.

  Q63  Mr Mitchell: It was illegal.

  Mr Bennett: It would be picked up then.

  Q64  Mr Mitchell: It was only picked up after this guy had handed over 7,000 quid for a blue Fiat.

  Mr Bennett: I do not know whether he checked with our records to check the vehicle was okay or not.

  Q65  Mr Mitchell: He bought it with a logbook and a tax disc issued by you.

  Mr Bennett: As this is a specific case I am dealing with that separately, but the short answer is there is a mechanism to check.

  Q66  Mr Mitchell: Which did not work in that case.

  Dr Hickey: Just for clarity, the underclass as in the definitions I gave refers to the vehicle and not the person, just for the record.

  Mr Mitchell: This was not an underclass character. I hope you deal with the letter I sent you.

  Q67  Mr Touhig: Mr Bennett, we read in paragraphs 3 and 32 of the report that the DVLA did not meet its evasion target in January and will not meet the target in December either. Is that because the targets are unrealistic or are you incompetent?

  Mr Bennett: First of all, it is quite true to say that is the situation. The difficulty with the targets is that we had three targets which were related to one another. Fundamentally there was an underclass target which had been recommended by the Jill Dando Institute, which was a 50% reduction in the underclass, and we have been through how difficult the underclass situation is. That then has a knock-on effect on road evasion and on the tax. It is true to say that those targets will not be possible to hit for that reason, but largely it is because of this issue of the rise in the underclass that we have not been able to stem.

  Q68  Mr Touhig: The underclass people who evade?

  Dr Hickey: Yes, this 50% reduction was the major factor and clearly we have not done that, indeed it has grown, and that is part of the problem.

  Q69  Mr Touhig: You said in answer to the Chairman that every indicator you had showed that the evasion issue was improving. How on earth could it show that from this report? Are your systems that bad? Is your data gathering that bad?

  Dr Hickey: Might I say something about the methodology. I apologise, it is complex, but it is for the Committee perhaps. The way this survey is done is by standing by the roadside, and it used to be people with clipboards but increasingly cameras, looking at vehicles. In this particular survey it was 1.3 million vehicles roughly. Of those that went by, about 1.8% were non-licensed. They started off with 1.8% and that 1.8% is the crude number, and that is very consistent with other survey information. It was consistent with the previous survey in 2005, there was no change. It was consistent with a police survey, a much smaller survey, which pointed to 1.9%. The crude measure, standing by the roadside counting the vehicles and checking are they taxed or are they not taxed, had not changed, it was the same, and a lot of other evidence was suggesting the same. The reason why the number got so much bigger was because of the analysis which was then done on those crude numbers. That analysis has two elements to it. One is there is weighting for different types of vehicles and different types of roads, and when you have done all that that gets to 2.2% evasion, which is bad but not cataclysmic. The really sophisticated bit is that they then compare the frequency with which licensed vehicles are spotted with the frequency with which unlicensed vehicles are spotted. Basically what they are saying is that unlicensed vehicles appear less often. People who do low mileage you would expect to appear less often because statistically you are not going to spot them so often. They apply a quite complicated methodology, which I will not attempt to explain, which grosses up for the number of people who are very rarely spotted but do exist out there, and it is that relationship which has changed dramatically between 2005 and 2006.

  Q70  Mr Touhig: It is very complex.

  Dr Hickey: I apologise for that explanation but it is a factor and that is why we were surprised as well, to be honest, because that is not visible when you just stand by the road and count them.

  Mr Bennett: To add to the point, and the point is very valid, the last time we did that review was we did a JDI survey which picks up the level of non-compliance, if I can put it that way. In 2005 that was 930,000 vehicles. That pointed us in the direction of saying we really needed to do some different things with wheel clamping and our partnerships. The problem is this time we have not yet had that survey done because the survey follows on from the completion of the roadside survey. We will get another one of those and that will give us very specific details about the level of evasion of the hard evader and then we can look again at the actions. The real answer to your question is we rely upon an annual review of the hard evader and then we adjust our enforcement accordingly.

  Q71  Mr Touhig: Post this report do you think you are now getting the numbers down or not?

  Dr Hickey: The 2007 survey has taken place, it was done in June of this year, but we have not yet got the results. The results will be published, we think, probably early next year, in January.

  Q72  Mr Touhig: We wait for those with anticipation.

  Dr Hickey: That will be interesting because by last June some of the actions that DVLA are taking had been in place. They were not in place back in 2006.

  Q73  Mr Touhig: Forgive me, I have little time. What happens when a vehicle is spotted in a street and it has no tax disc? I do street surgeries and I came up to a street surgery recently and someone said to me, "Look, that car is not taxed", I reported it to the police and the car is still there. Who is responsible for dealing with that?

  Mr Bennett: We would have several mechanisms for dealing with that. Sometimes the public will report it to our hotline. We could find that ourselves through wheel clamping, so the wheel clampers would go round, assuming it is on a public road, going back to the point we made earlier, clamp the vehicle and take the vehicle in. We have enforcement officers.

  Q74  Mr Touhig: Who does that, you or the police?

  Mr Bennett: We would do that if it is on a public road.

  Q75  Mr Touhig: Do the police have a role here or not?

  Mr Bennett: The police could do it, but it is not their main—

  Q76  Mr Touhig: I am told by one of the neighbours the police did visit but the car is still there.

  Mr Bennett: The police could send a report on it.

  Q77  Mr Touhig: You have got a vehicle, it is untaxed, can you destroy that vehicle?

  Mr Bennett: Oh, yes.

  Q78 Mr Touhig: You can.

  Mr Bennett: Yes, and we do.

  Q79  Mr Touhig: I think it is a good idea that if you get somebody like that, you get them, you prosecute them, you take the vehicle off them and turn it into scrap.

  Mr Bennett: If you take the wheel clamping situation, and we have increased wheel clamping, what they will do is take it to a pound, they will hold the vehicle, take the release fee and surety fee and the vehicle will be released, the person has to come back with a tax disc and then the surety will be refunded. If they do not pay the surety fee or release fees we will scrap the vehicle.


 
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