RHA Managing Director Richard Smith raises some issues that continue to cause concern for coach operators
The 90/180 rule restricting the time people can spend in the EU continues to be a big concern for coach operators on international work. And it’s why we at the RHA are calling on the Government as part of their reset agenda to secure easements like a Professional Drivers’ Exemption for example to support UK and arguably EU businesses.
International touring is specialist work and usually seasonal. Drivers will be typically highly experienced and in some cases specialists on specific tours and operate those back-to-back through the season – March to Christmas. The European programmes can involve specialist vehicles which are equipped for long-haul touring and need to be deployed to justify the investment.
But with 90/180 rules likely to be enforced when the Schengen area Entry/Exit System (EES) comes into play – possibly in November – our industry has a problem. The conundrum is broadly two-fold.
If drivers are restricted from the amount of time during the season they can operate abroad then their employers will need to find other drivers to cover the shortfall from a very limited pool. And this could mean turning down tours or losing contracts. We must remember that any time a coach driver spends in the EU in their own time will be chalked off the number of days they can do behind the wheel in the bloc.
The other issue is what they would do domestically instead. There’s rarely equivalent work in the UK so the risk is that many drivers who benefit from that lifestyle and enjoy long-haul international trips will be lost from the industry. Once EES is operational the 90/180 clocks will likely be set – and it will affect firms of all sizes. We anticipate it could mean fewer European tours for British operators leaving them to restructure or scrambling for other types of work in a crowded market. Some operators could go out of business and growth in the sector could be stifled.
The Government is set to strike a new deal in the coming months on closer ties with the EU, which is said to be keen on a ‘Youth Mobility Scheme’ to allow greater freedom of movement for 18-30s between the UK and the EU. European Affairs Minister Nick Thomas-Symonds said recently that the UK and the EU have “many mutually aligned interests and challenges.”
A Professional Drivers’ Exemption for coach and lorry drivers moving people and goods between the UK and EU as a solution to some of those challenges fits the bill perfectly. It would offer safeguards for transport businesses – and indeed the sectors and economies they support on both sides of the Channel. And it’s why we’re calling on the Government to progress this solution with its EU counterparts in upcoming talks.
On the domestic front, new figures on economic performance can give us cause for a degree of optimism. The Office for National Statistics (ONS) said UK gross domestic product (GDP) is estimated to have grown by 0.1% between October and December, following no growth in the previous three months. Growth in services and construction have helped drive the increase; and investment to facilitate the latter will be key to deliver on the Government’s housebuilding targets to deliver 1.5 million homes over this Parliament. This will require a more efficient road network to facilitate their construction the supporting infrastructure those areas will need, which will bring wider benefits, including to the coach and bus sector.
It’s why we at the RHA urged the Government in our Spending Review response to prioritise investment in road infrastructure through the upcoming Road Investment Strategy 3. Local roads need investment too with potholes currently costing the economy £14 billion each year. Having people with the right skills in the right places is vital to drive growth too; we were certainly buoyed this week by the Government’s announcement to change apprenticeship rules in England which will support more people to get behind the wheel and into other critical roles in our sector. But there is much more still to do.
Amid the optimism we mustn’t lose sight that these are still precarious times for our industry and the wider economy. Increases to Employers’ National Insurance contributions in April are still to come and we have to anticipate that prices will rise and jobs will be affected, especially in the haulage sector. What we don’t know is to what extent.
We’re realistic that the Government has an incredibly tough job to do to balance the books and boost the economy. We will continue to support ministers and officials to chart a path which builds on recent growth and delivers long-term prosperity for the UK.
