Annual Vehicle Inspection Fee of Large Goods Vehicles: Fee Increase

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A decision made 18 May 2018:

Decision Reference: MD-TR-2018-0079
Decision Summary Title:	Department for Infrastructure Increase in the fee charged for the Annual Vehicle Inspection of commercial large goods vehicles		Date of Decision Summary:	17th May 2018
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	Department for Infrastructure Increase in the fee charged for the Annual Vehicle Inspection of commercial large goods vehicles		Date of Written Report:	17th May 2018
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: Department for Infrastructure increase to the fee charged to commercial vehicle operators for the Annual Vehicle Inspection of large goods vehicles requiring a Certificate of Compliance (CoC).
Decision(s): The Minister approved the fee increase from £25 to £175 as detailed in the attached report, proposed by the Department for Infrastructure.
Reason(s) for Decision: Financial Direction 4.1 (paragraph 5.2) states that increases in States fees and charges should be limited to 2.5% per annum with compelling cases to be subject to the prior approval of the Minister for Treasury and Resources. The Annual Vehicle Inspection will be compulsory for all commercial vehicles over 7.5 tonnes, with those passing the inspection issued with a Certificate of Compliance, which will be valid for 12 months. This will later be extended, in 2019, to include vehicles that fall into the over 3.5 to 7.5 tonnes category. Currently the inspection required in order to issue a Certificate of Compliance is covered under Article 120 of the Motor Vehicles (Construction and Use) (Jersey) Order 1998 and the fee for such an examination has been set at £25 since 1998. The draft Motor Vehicles (Construction and Use) (amendment No 12) (Jersey) Order 201- will see the inspection fee for large goods vehicles increase to £175 which aligns it to that of the current P30 inspection fee for which the requirement for a CoC is applied. The aim is that the fees continue to apply the user pays principle and reflect, as far as possible, the present costs of providing services.
Resource Implications: The increase is forecast to result in additional revenue to DfI of approximately £103,950 based on the assumption that all of the large goods vehicles on the registration system are currently in use. The increase in the fee is expected to cover the costs of operating and administering the system only. The Annual Vehicle Inspection will be undertaken from existing Driver and Vehicle Standards resources and facilities.
Action required: The Head of Decision Support to inform the Finance Director - Department for Infrastructure once this decision has been approved.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision: