Fleet - Corporate manslaughter - Around the Next Corner.

(From Financial Director)

Byline: Peter Bartram.

The traffic may not be moving much faster, but the number of rules and regulations governing the way companies operate their vehicle fleets certainly is. This autumn sees two important developments - the September launch of the Health & Safety Executive's new guidance on at-work road safety, and possible progress on Home Secretary David Blunkett's bill on corporate manslaughter. Finance directors may feel these matters can be safely left to directors in functions such as distribution or transport, but there are three good reasons why FDs need to take a more direct interest.

First, it looks certain that if Blunkett gets his way on the corporate killing law, some of the free-and-easy maintenance practices for fleet vehicles will have to change. And - surprise, surprise - the new approach will cost more.

The nub of the problem lies in the little-known fact that HGVs are often sent out on the roads with maintenance disclaimers which state that necessary work has not been completed. "Disclaimers have been the industry norm," according to David Barlow, managing director of Prohire, a leasing company with more than 1,000 vehicles on hire to blue chips as well as small-time operators. "It's a get-out-of-jail card the repairer uses if anything goes wrong."

Under the new legislation, however, if a vehicle with a maintenance disclaimer causes a fatal accident, the leasing company, as well as the end-user, could find itself liable. No wonder Barlow has sent his senior staff on a nationwide tour of the maintenance firms he is using. "Our authorisation procedure has always made it clear that no repairer disclaimers are to be issued," says Barlow. Prohire is insisting that all repairers sign new contracts which forbid them from sending out vehicles with disclaimers.

Companies that lease vehicles from responsible providers such as Prohire can be certain their leasing companies will take care of the matter. Those who operate fleets directly will have to make sure the issue is legally watertight with their own repairers. Barlow thinks much of the extra cost can be absorbed, but there will be more problems with vehicles (which previously might have been waved out on the road with disclaimers) being held back in the garage. Prohire is investing in more replacement vehicles.