Policy instruments (2) - Transport Policy and Planning in Great Britain - page 206

The principal aim of our strategy is to 'mainstream' motorcycling so that all the
organisations involved in the development and implementation of transport
policy recognise motorcycling as a legitimate and increasingly popular mode of
transport.
(ibid. Foreword)
The licensing of operators
Politically the safety issues surrounding heavy goods vehicles (HGVs) and passenger
carrying vehicles (PCVs) are especially sensitive. In these cases a licence is required by
the operating company or organisation as well as for its individual vehicles and drivers.
(Special provisions apply to taxis and community transport, discussed later.)
Applications for operator licences are considered by Traffic Commissioners who are
appointed by the Government and organised on a regional basis. Initially an applicant
has to demonstrate their suitability in terms of financial standing, professional
competence, absence of criminal record, appropriate vehicle storage and maintenance
facilities etc. Licences specify the maximum number of vehicles which can be run by
an operator, and vehicle licences are controlled accordingly. Vehicles and maintenance
facilities are inspected on a regular basis by the Vehicle and Operator Services Agency
(a sister agency of DVLA) which acts as a source of intelligence and advice to the
Traffic Commissioners. The Agency also conducts random roadside tests including
checks on tachographs used to monitor drivers' hours.
Commissioners may investigate complaints against licensed operators brought by
VOSA, the police or other organisations, e.g. concerning breaches of restrictions on
vehicle weights, speeds or driver hours. In the case of bus services, non-compliance
with the terms of service registration (13.6) is also grounds for investigation. An
inquiry may be held to adjudicate on the situation and, if a complaint is upheld,
result in fines, an alteration to the conditions of a licence or, in the extreme, its
removal altogether.
13.3 Competition in the transport industries
The shift to a predominantly 'deregulated' regime for transport industries (as far as
quantity and price are concerned) is based on the presumption that the incentives
and strictures of a free market will deliver services more in line with consumer
preferences.
In practice however, even where privatisation and deregulation have been
introduced, the structure of the industry and/or the behaviour of individual companies
may have the effect of inhibiting competition. This is not a situation unique to transport,
and a body of general competition legislation has been developed to safeguard and
promote it. However public passenger transport has certain special features which
renders open competition problematic. This has led to elements of regulation and
other forms of intervention being retained which do not sit easily in a more general
business environment predicated on competition.
In practice there is no such thing as perfect or optimum regulation. The relevant
question is always whether an imperfect system of regulation will achieve a better
outcome than an imperfect, less regulated market over a long period of time.
(Glaister et al. 1998 p. 228)