Sun. Apr 5th, 2020

Congress will vote on Thursday to validate the decree law on VTC

Congress will vote on Thursday to validate the decree law on VTC



The Plenary of Congress will decide next Thursday if it validates or repeals the royal decree law passed on September 28 by the Government and that empowers the autonomous communities and municipalities to regulate the activity of rental vehicles with driver (VTC).

The norm includes a transitory regime of four years so that the autonomous and local administrations adapt the legislation.

The validation of this royal decree, which modifies the Land Transportation Ordinance Law (LOTT) in terms of VTC, would require a simple majority for its elevation to the status of law.

The new royal decree law that aims to regulate the activity of the VTC was developed as an urgent response to balance its offer with the taxi in the Spanish cities, after the atmosphere of conflict since the beginning of the summer.

The norm has not satisfied neither the group of the licenses of VTC nor the one of the taxi. However, taxi drivers have applauded its content in general, although they have expressed their disagreement about the four-year moratorium.

This moratorium will allow the holders of existing VTC authorizations at the entry into force of the regulation or whose applications were pending to be resolved to continue operating four more years in the urban area as before.

After this period, the authorizations of VTC at the state level will be enabled only to provide interurban services.

According to the Government, this is a deadline to compensate the damages that may be caused to the holders of the VTC granted in accordance with the previous regulations and that may be annulled in order to respect the legal ratio of 1/30 (one VTC per 30 taxis).

However, the royal decree law admits that, in certain duly justified cases, this period may be extended to recover the investment to the VTC that request it, if they can not access a second authorization in the urban area.

The association Unauto VTC, which groups 90% of the VTC sector in Spain, asked the government to "stop cheating the autonomous communities" and not hide that they must pay millions in compensation, if the royal decree law is validated.

The employers believe that, with the new regulations, the autonomous communities will be responsible for financially compensating the possible expropriation of VTC authorizations.

Unauto VTC referred to data from a study by Ernst & Young, which indicates that the cost of a tacit expropriation of VTC authorizations could amount to around 3,800 million euros.

It is expected that the norm will count on the support of the socialist groups and Unidos Podemos, while it was criticized by the PP.

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