Monday 03 February 2014
Environment Department response to media enquiry from Guernsey Press on 30/01/2014.
Guernsey Press Enquiry:
In regard to the forthcoming introduction of the vehicle ownership transfer charges, can the department please answer the following questions:
- How much money does the department expect to make per year from the new charge?
- Was consultation undertaken with garages about the introduction of the charge? If so, what was the reaction? If not, why not?
- Is the department looking to introduce this charge to meet FTP targets?
- If so, were cost cutting measures looked at first? What measures were considered?
- Why does the department feel it has to charge for this, previously free, service?
- Does it apply to everyone, such as second hand car dealers and private sellers, or just garages?
- Is the £25 charge likely to increase in the future?
This is planned in for tomorrow's paper, so if you can please reply by 3.30pm today I would be grateful. Can you also please acknowledge receipt of this email.
Environment Department Response:
Reference to this charge was included in the States Billet No. XII for June 2013; it was part of an Environment Department report titled Traffic and Transport Services - Fees and Charges and included a statement that the sum of £425,000 may be raised.
The Environment Department discussed the proposal with motor traders (garages) at the time of the States Report. The measure has no direct impact for motor traders as they are exempt from paying the fee for vehicles that are retained for onward sale and there was not a question that the charge would not be brought in. Consequently, a formal consultation process would not have served any useful purpose.
This charge is being levied to cover the costs of administering the service and as a result enable a reduction of the Departments allocated revenue budget. The reduction will contribute to the States overall FTP savings but the Department has already largely met its specific FTP target. These new savings will result in a significant over achievement by the Department. There has already been an extensive cost cutting programme within the Department to conform to FTP commitments; this has included the loss of six and half staff (FTE) including three senior posts, the replacement of another senior staff member with a lower graded employee and the phased retirement of two other employees. In addition service contracts in relation to the public bus service, water quality standards and parks and gardens maintenance have been re-negotiated to realise savings.
The reasons for the charge are set out above. However, it should be pointed out that it is not presently "a free service". Although it is administered principally on behalf of and for the benefit of individuals and private businesses, it is paid for out of general taxation. In effect, this is a subsidy for vehicle owners paid for by those who do not enjoy personal transport.
As mentioned above, recognised motor traders will not be liable to pay the charge for taking on temporary ownership of a vehicle prior to onward sale and can make their own decisions about how the charge should be managed for customers who purchase a vehicle. Should a trader take in a vehicle for other purposes then the fee is payable. Currently this is the sole identified exception, but the Environment Department retains the legal right to waive the fee and may do so should circumstances indicate that this is an appropriate action to take.
There are no plans for any increase to the fee at the present time.
Contact Information:
Traffic and Transport Services Manager
Environment Department
Tel: 243400
