[2024] UKUT 337 (AAC)

The Senior Traffic Commissioner has power to give general directions to the other Traffic Commissioners. The power is conferred by section 4C(1) of the Public Passenger vehicles Act 1981 (“the 1981 Act”) in the following terms:

“The senior traffic commissioner may give to the traffic commissioners –

(a)

guidance, or

(b)

general directions,

as to the exercise of their functions under any enactment.”

Section 4C(3)(b) of the 1981 Act provides that the general directions that may be given by the Senior Traffic Commissioner include directions as to:

“the information which a traffic commissioner must ask to be supplied in connection with the exercise of any particular function, and the steps which must be taken to verify the accuracy of any information so supplied.”

The legal effect of the Senior Traffic Commissioner’s general directions, in relation to goods vehicles licensing, is dealt with by Section 1(2) of the Goods Vehicles (Licensing of Operators) Act 1995 (“the 1995 Act”), which provides as follows:

“In the exercise of his functions under this Act a traffic commissioner shall act under the general directions of, and shall have regard to any guidance given by, the senior traffic commissioner.”

Section 8(4) of the 1995 Act provides that a person applying for an operator’s licence must give to the Traffic Commissioner “any further information which the commissioner may reasonably require for the discharge of his duties in relation to the application”. Section 8(4) also provides that the applicant “in particular shall, if required by the commissioner to do so, give to him any of the information specified in paragraph 1 of Schedule 2” to the Act. The information specified in Schedule 2 includes “particulars of the financial resources which are or are likely to be available to the applicant” (paragraph (1)(g)).

Any information to be given to the Traffic Commissioner under section 8 of the 1995 Act “shall be given in such form as the commissioner may require” (section 8(6)).

On an application for a restricted licence, the Traffic Commissioner must in all cases consider whether the requirements of section 13B and 13C of the 1995 Act are satisfied, and “if the commissioner thinks fit, whether the requirement of section 13D is satisfied” (section 13(2)).

If the Traffic Commissioner determines that any requirement taken into consideration in accordance with section 13(2) of the 1995 Act is not satisfied, the Commissioner must refuse the application for an operator’s licence (section 13(5)).

The requirements of section 13C of the 1995 Act include, in subsection (4), that “there must be satisfactory facilities and arrangements for maintaining the vehicles used under the licence in a fit and serviceable condition”. Section 13D relates to this requirement, and provides as follows:

“The requirement of this section is that the provision of the facilities and arrangements for maintaining the vehicles in a fit and serviceable condition (see section 13C(4)) is not prejudiced by reason of the applicant’s having insufficient financial resources for that purpose.”

Under section 37(1) of the 1995 Act, an applicant for an operator’s licence may appeal to the Upper Tribunal against a Traffic Commissioner’s refusal to grant the licence. Section 37(1) should be read with paragraph 17(1) of Schedule 4 to the Transport Act 1985, which provides as follows:

“The…Upper Tribunal [is] to have full jurisdiction to hear and determine all matters (whether of law or of fact) for the purpose of the exercise of any of [its] functions under an enactment relating to transport…”.

The Senior Traffic Commissioner has given directions to the other Commissioners about evidence that is capable of establishing that financial regulatory requirements are satisfied. At the date on which the Traffic Commissioner refused the Appellant’s application for an operator’s licence, the Senior Traffic Commissioner’s Statutory Document No. 2 – Finance included the following provision:

“26.

The Senior Traffic Commissioner for Great Britain issues the following Directions to traffic commissioners under section 4C(1) of the Public Passenger Vehicles Act 1981 (as amended)…

33.

Historically commissioners have required the submission of bank statements for a 3 month period when operators and applicants are seeking to establish availability of finance but this approach has only given a historic analysis of the operator’s financial position and has been of limited assistance to new applicants who may only be able to establish access to the required finances for a period of 1 month prior to the establishment of the business…

48.

Where on application (new or variation)…bank or building society accounts are relied upon, due to difficulties with authenticating documents, original statements must be supplied for the past 28 days, the last balance of which must not be more than 2 months from the date of receipt of the application…

49.

As stated above original documents need to be produced and so where internet statements are relied upon the operator/applicant will need to have them endorsed by the relevant bank. A stamp and signature from the relevant bank or building society will be accepted by traffic commissioners.”