Evidence of Course Profits from LTT

Local Transport Today, the magazine read by local authority traffic engineers, have published an interesting article on the activities of Hertfordshire County Council in their provision of Speed Awareness Courses.

The article notes that there are 24 accredited course operators. That includes three private sector organisations, six police forces and 15 local authorities. All of them can generate very substantial profits above the costs incurred in providing the courses. For example, LTT report that Hertfordshire County Council generated a surplus of £947,000 in 2015/2016 by delivering 1,891 courses attended by 41,641 drivers giving income of £3.7 million (source: Local Transport Today). Hertfordshire are apparently looking to expand their “business activities” in this area according to Chief Executive John Wood. One can see why when it is such a money spinner.

The police and local authorities may well spend some the surplus from running courses on road safety measures (there is no legal obligation to do so) but private sector operators can simply lose the profits in high salaries and directors fees. For example in October 2015 the Sun Newspaper ran an article that suggested the directors of AA Drivetech received £5.5 million in directors fees in 2013.

One disturbing aspect is that although the police do not set speed limits or determine the location of speed cameras, they do advise on those matters. But local authorities do directly control speed limits so they may well have a financial incentive to lower limits and introduce more cameras so as to increase the demand for speed awareness courses and the hence the profits they receive.

Roger Lawson

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