1. Using the Short Distance
Exemption
Tim Cairns
John Taylor

2. An email…
Hi John
I note that you are going to speak at the CTA
Conference regarding the Short Distance
exemption….I am certain that this will be
listened to with great interest by CTA
members and non members as well as
Commercial Operators.
---------
Don’t expect public frankness until after the
JR. And cut CTA some slack as an ‘issuer’.

3. Context
 EU Regulation 1071/2009 on access to the
profession (‘O’ licences). Passed 2009,
applied 2011.
 DfT’s assumption during consultation on
implementation in UK that:
Permits=>non-commercial purposes =>
exempt from PSV ‘O’ licensing
 View has now changed that this is not
automatic – hence consultation since 2017,
ACT/DANSA cases, Judicial Review (next
week, but don’t hold your breath), etc.

4. Regulation 1071/2009
 Two main exemptions:
 “undertakings engaged in road passenger
transport services exclusively for non-
commercial purposes” or
 “which have a main occupation other than
that of road passenger transport operator”
 Optional for member states to take up:
 “operators engaged exclusively in national
transport operations having only a minor
impact on the transport market because of …
the short distances involved.”

5. GB approach
 Government has opted to take up the
short distance option (GB only), thereby
carving out an additional space for CT
operators to avoid ‘O’ licensing
 BCA is not happy……
 Applies from October 1st
 NB Exemption from ‘O’ licensing is just
that. It does NOT imply exemption from
complying with driver licensing, DCPCs,
drivers’ hours. These are different tests.

6. SI 2019/572 amends TA’85
 New criterion for getting a 19/22 permit
1071/2009 doesn’t apply if:
 Not a road passenger transport operator (e.g. small
vehicles under Permits/car schemes)
 Not hire or reward
Otherwise the body needs exemption:
 Exclusively not main occupation, OR
 Exclusively for non-commercial purposes, OR
 Exclusively have a minor impact due to short distances
involved
If body loses exemption, then its permits are invalid
“exempt body”

7. What counts as a short distance?
Automatic exemption for:
 Each service operates within a radius of 10
miles from a place specified by the
operator when applying for the permit; or
 For each service, the distance between the
first passenger boarding point and the last
passenger dropping off point, is not more
than 10 miles, measured in a straight line
 Allows for longer journeys “on an
occasional basis”

8. The radius permit
 10 miles radius = 20 miles diameter
 Choice of model applies to the permit
 Identifiable fixed central point - can be
anywhere – not just the depot
 Up to 3 different central points per body
– if more than three required, not
automatically exempt – persuade permit
issuer
 All ‘services’ must be within the circle(s)
– service starts with first pick-up and
ends with last drop off

9. The straight line permit
 Permit-specific – either radius or
straight line – but can have more than
one of each
 Straight line applies to each service run
under that permit – but many services
in different locations could be covered
 Outward and return journeys are two
separate ‘services’
 Doesn’t prevent a service being longer
than 10 miles:-

11. “Except on an occasional basis”
 Not a “regular service” – specified
frequency, pre-determined routes and
stopping points i.e. a bus service
 But could have a standard frequency e.g.
monthly outing to a garden centre
 Such services (i.e. beyond the 10 mile
options) must not exceed 10% of the
mileage of all (relevant?) vehicles operated
by the organisation.
 “Cannot take up or set down new
passengers during the journey” i.e. group
transport

12. Non-automatic exemption
 The 10 mile options provide automatic
exemption (e.g. no need to prove minor
impact on the transport market)
 If you can’t fit within these limits you
will need to persuade your permit issuer
that your operations have only a minor
impact on the transport market because
of the short distances involved

13. How do I prove this?
 Case by case – lots of mapping
 Nature of the operating area requires
longer than 10 mile journey or can
accommodate more than “two or three”
radius permits without impact i.e. rural
 Evidence of non-competition with existing
services in the area (geography, time)
 Specific group of passengers are not able
to use other public transport
 The ‘market’ = the whole passenger
transport market in vehicles with 9 or
more passenger capacity

14. Do I really want to do this?
 Having to use the ‘short distance’
exemption means that some of my
operations are operated for commercial
purposes, but without a view to profit.
 Becomes more difficult to argue non-
commerciality in respect of driver
licensing, driver CPCs, tachographs,
hours and records….
 NOT a ‘get out of jail free’ card

15. What do I do now?
 Decide which exemption ALL your services
will come under
 If ‘automatic short distance’, define any
central points you need and designate
existing permits as either radius or straight
line and record this. Good practice =
inform your issuer. Apply for more if
needed
 If ‘extenuating circumstances short
distance’ then prepare your evidence and
contact your permit issuer
 Otherwise, record the exemption option,
and use that on renewing your permits