TRANSPORT AND TECHNICAL SERVICES
SALE OF REGISTRATION MARK RIGHTS OVER THE COUNTER
PURPOSE OF THE REPORT
To approve a trial scheme to sell registration mark rights over the counter at Driver and Vehicle Standards for amounts determined by the Minister.
BACKGROUND
In November 2013, following changes made to the Motor Vehicle Registration (Jersey) Law 1993 (“the Law”) by the Motor Vehicle Registration (Amendment No. 4) (Jersey) Law 201-, approved by the States on 25 September 2013 and sanctioned by the Privy Council on 06 November 2013, the Minister made the Motor Vehicle Registration (General Provisions) (Amendment No. 19) (Jersey) Order 2013, which amended the Motor Vehicle Registration (General Provisions) (Jersey) Order 1993. This Order amendment made provision for among other things, selling the right to display cherished registration marks by auction, tender or at a set amount determined by the Minister.
In December, an auction of cherished registration mark rights raised over £260,000.
DISCUSSION
The Driver and Vehicle Standards Unit of the Department, to meet the cash limit requirements set under the Comprehensive Spending Review for 2013 and annually thereafter, is expected to derive a net income in excess of £100,000 per annum from the sale of mark rights, the right to display a cherished registration mark. The main means of sale is by holding an annual auction for the more ‘special’ cherished registration marks.
There should be enough cherished numbers to allow at least ten years of annual public auctions. The aim would be to release around 50 numbers at annual auctions, which will be a mixture of JSY, 3 digit, 4 digit, very special 5 digit and 6 digit numbers. However, it would seem there is a demand for registration marks that would have either limited interest at auction but would be valued by some people or people would be prepared to pay a pre-determined fixed sum rather than compete at auction. This would allow an opportunity to sell such mark rights over the counter.
The proposed method of releasing ‘cherished’ registration numbers as mark rights is shown in the table.
JSY* | Auction only |
JSY** | Auction only |
JSY*** | Auction / over counter |
3 Digit | Auction only |
4 Digit | Auction / over counter |
5 Digit | Auction / over counter |
6 Digit | Auction / over counter |
For those interesting ‘cherished’ registration marks that could be released over the counter, the proposed charges should be based on previous auctions with the prices at the top end of the average price. The customer is not having to attend an auction, register and bid for the number, they will be obtaining the number of their choice at that point making it much more convenient for the customer; the customer will not be liable for the auctioneer’s commission (10% at 2013 auction) where they are also liable for 5% GST on the commission paid. (It is understood that GST will not apply to transactions over the counter at DVS).
JSY*** £5000
The average cost at 2013 auction was £4,813. The successful bidder was also liable for 10% commission and 5% GST on the commission paid, meaning the average total price paid was £5,318.
More desirable JSY*** numbers should be retained for auction but the rest could be made available over the counter.
4 Digit: £2100
The average cost at 2013 auction was £2,056. Tthe successful bidder was also liable for 10% commission and 5% GST on the commission paid, meaning the average total price paid was £2,271.
Again, more desirable 4 digit numbers should be retained for auction but the rest could be made available over the counter.
5 Digit:
These are more difficult to price. The suggested range is from £250 - £1,200. J94949 sold at the 2013 auction for £1,100 with commission and GST the bidder paid in total £1,215.50
6 Digit:
These will be much more difficult to price – The suggested range is from £250 - £1200. However, very special 6 digit numbers would be retained for auction. For example J111111 sold for £9,700.
A list of all registration marks that are available will be available for the Minister when considering this report. A list of more interesting cherished numbers on the VRS (the retained list) has been assembled and will also be available. From the retained list the Registration Supervisor will select very desirable numbers and highlight them for auction release only. The registration marks which have not been selected exclusively for auction release will be allocated a charge based on those set out above.
The Registration Supervisor will propose a charge for each registration mark which will be reviewed and confirmed by the Inspector of Motor Traffic and the Director of Finance before being made available to customers.
Customer requests.
Some common requests received at DVS are for the following:-
- Dates of Birth / Telephone numbers etc.
Some customers ask for numbers which have a meaning to them but are not considered particularly sought after, for example dates of birth such as 12.01.84 (J120184). A charge of £250 is proposed for such cases.
Some customers ask for a 5 digit number, particularly if registering a classic vehicle or a motorcycle where a 6 digit number was randomly assigned to the vehicle. A charge of £250 is proposed for such cases.
These registration marks would be offered from the general stock of numbers, not those on the retained list.
Current Process:
Currently, when someone applies to register a vehicle, a number is randomly assigned from stock. This will be a 5 digit or a 6 digit number. The DVS Clerk or customer does not actually see what number is going to come out until the button is pressed – the fee for registration is £25.40 and the applicant will get whatever number is randomly assigned from the system at no additional charge.
The stock of numbers is monitored by the Registration Supervisor and it relies upon the Supervisor to identify ‘desirable’ numbers which have come back into stock and place a cherished marker against them so they are not released during a normal allocation. This only applies for 5 and 6 digits as the others are automatically locked in the system upon return to stock and kept in a retained list.
The Supervisor adds new 6 digit registration numbers to the ‘pool’ when stocks are low; this is done as batches. Currently DVS are allocating numbers up to 124900, which means if, for example, someone wanted a number higher than 124900, say 130974 as a ruby wedding anniversary or 40th birthday gift, it would not be available at present as we are not allocating numbers that high. There may be merit in unlocking a larger series of numbers to cater for such requests. This will create a larger stock of desirable numbers but it is perhaps something that should be considered in future once there is experience of the process and demand for the stock of numbers that are available at present.
What would be required?
To avoid the creation of a ‘cottage industry’ and taking up valuable time of already stretched DVS staff dealing with enquiries, a touch screen computer terminal would be installed in the reception of DVS. This terminal will be linked to Vehicle Registration System (VRS) which will hold a ‘live’ list of available numbers that customers will be able to search.
If feasible, adding a touch screen terminal in reception would also be useful for customers to access the online driving test booking system which they could use at busy periods to either book or amend bookings.
The possibility of having an ‘easy search’ facility added to the VRS allowing staff and customers to search for numbers would be investigated. For example if someone wanted any number which included ‘1966’ they could enter ‘1966’ in the search and it would report back with any available numbers. The process should be as simple and user friendly as possible.
Amendments to the vehicle registration system, installation of a touch screen terminal in reception and making the search facility available on-line, will have a cost, yet to be determined, but this should be funded from income from the sale of mark rights. If the trial is successful, it should be feasible to make the search system available on-line.
How will it work?
At present, a customer wishing to be granted a mark right (including bidding at an auction) must complete an application and produce proof of identity, so can only complete the process at DVS reception. The process would work as follows:-
- Customer will use the look up facility on the touch screen terminal in reception (possibly online in the future).
- Once they have selected a number they will pay at the counter.
- The number will be allocated to them and issued with a mark right document - they will then have two options:-
1) Assign the number to a vehicle immediately.
2) Reserve the number for assignment to a vehicle within six months.
- Mark rights are not transferable and so could not be sold on to another person.
CONCLUSION
Demand is difficult to estimate but from enquiries received, there appear to be customers who would be keen to have this service available. It would seem reasonable, therefore, to introduce a trial scheme to gauge customer demand and the effect on the business unit.
RECOMMENDATION
The Minister is asked to approve a trial scheme where registration marks, other than those set aside for auction, can be made available to customers over the counter. The scale of charges will be based on:-
- the average amount paid for a similar style of registration mark at auction, where the registration mark is on the retained list
or
- £250 where the registration mark is requested from the general stock of registration marks.
The charge for any registration mark on the retained list would be published along with the registration mark.
REASON FOR DECISION
To offer customers, over the counter, an opportunity, for a charge, to be granted the right to display certain registration marks. To determine whether there is a regular customer demand that will provide a modest steady cash flow to assist meeting cash limit requirements.
RESOURCE IMPLICATIONS
While costs and income remain to be determined, the intention would be to generate an annual net income from over the counter sales of £40,000.
ACTION REQUIRED
Head of Driver and Vehicle Standards to take the necessary steps to introduce a trial scheme at the earliest opportunity and report back regularly to the Minister.
Written by: Registration Supervisor
Endorsed by: Head of Driver and Vehicle Standards/Inspector of Motor Traffic
Approved by: Director of Transport
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