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Tasks of the Ministry within the sphere of automobile transport

The main task of the Ministry is to deal with important matters, which are the following:
1. Insufficient efficiency of the regulatory authority for road transport.

In order to solve this problem in accordance with the Directive of the Cabinet of Ministers of Ukraine of 10.09.2014 № 442 "On optimization of central executive authorities" the State Service of Ukraine for Transport Safety was established through reorganization by merging the State Inspectorate for Maritime and River Transport Safety, the State Inspectorate for Land Transport Safety and having subjected the State Special Transport Service of Ukraine to service which was established.

The Directive of the Cabinet of Ministers of Ukraine of 11.02.2015 № 103 approved the Regulation on the State Service of Ukraine for Transport Safety. Thus, it is the State Service of Ukraine for Transport Safety which will further function as a state control of road transport.
2. Lack of access mechanism to the transportation market.

Licensing carriers today is purely a formality that on the one hand, creates unnecessary bureaucratic obstacles on the market and on the other - does not provide a real assessment of opportunities for carrier to fulfil his obligations.

It is proposed to introduce the access procedure to the market of passenger and freight road transport, which will include the necessity for passenger carrier and his senior staff to meet certain requirements: good reputation, satisfactory financial condition, availability of vehicles, necessary professional skills.

This procedure will make it impossible for unconscionable carriers, who are unable to be financially liable under their obligations and are not able to ensure quality and safety of transportation, compliance with the requirements of European countries due to financial insolvency, to access the transportation market.

The existence of such a procedure will help in the future to give up tenders for passenger transportation and to go to market with free competition, as in European Union countries.

3. Lack of a real mechanism of compensation for travel privileges.

It is suggested that the problem be solved by the introduction of proposed targeted aid to disadvantaged population.

This will prevent fraud in the system of distribution of compensation funds to transporters, reduce their losses from the transportation of privileged passengers and order travel privileges.

4. Absence of a unitary taxation system in the field of transport.

Today, carriers work on both general taxation (legal entities) and simplified taxation system (sole traders).

The lack of a common approach to the taxation of profits from transport has been a matter of controversy between carriers for a long time and it creates unfair competition. Thus, the carriers operating on simplified taxation system often have the same income as carriers - legal entities. Such carriers are no longer representatives of small businesses. Moreover, they set the same passenger fares, and load infrastructure and the environment not less than their competitors operating on a common system of taxation.

Thus, the transport sector needs additional legally defined differentiation regarding taxation of carriers; it may depend on the quantity and quality of vehicles, financial situation and so on.

Besides, the presence of carriers operating on a simplified taxation system sometimes makes it difficult to establish a common approach to specific innovations. For example, it complicates issue of introducing cash registers in transports because under law some carriers are not bound to use registers of payment transactions.

5. Use of buses of small capacity, converted from trucks.

This problem is familiar to all passengers on the territory of Ukraine and for a long time it has not been solved by the government, because under the slogan of the need to reduce the pressure on businesses, there is a significant number of "minibuses" on the market of bus transportation which carry passengers also to a considerable distance.

The presence of "gaps" in the law makes all efforts to prohibit the use of such vehicles ineffective.

At the same time, it should be understood that automobile transport is a source of increased danger and passenger services are an area in which the rights of passengers are much more important, than liberalization of requirements for entrepreneurs.

Rendering of transport services must be performed with vehicles that provide convenience, comfort and safety of traffic.

In addition, the use of these vehicles creates conditions for existence of a large number of illegal carriers, to which, in practice, it is difficult to apply certain sanctions. Instead, carriers who acquire higher-class buses are interested in ordering and legalizing their activities.

Thus, it is proposed to introduce restrictions on the use of buses of small capacity converted from cargo and freight vehicle on the market of passenger transport.

6. The issue of lack of control over working time and rest time of drivers of wheeled vehicles has not been solved up to now.

This may be addressed through the development of legal acts on state control in road transport, which are provided by the approved Plans of implementation.

7. The large number of bureaucratic procedures that regulate the daily process of automobile carriers that are obsolete and hinder the development of road transport.

This problem will be solved by amending the law of Ukraine aimed at simplification of business activities in the sphere of road transport.

8. The main problems of urban electric transport are:
  • aging and reducing of rolling stock amount;
  • depreciation of tramways and contact networks;
  • low tariffs and only partial compensation for travel privileges;
  • unfair competition on the side of private carriers;
  • lack of investment in development.
Proposals to exercise the priorities of automobile, city electric transport and road industry.
In the sphere of management of industry:
  • Reform of state control system and regulation of activities in the sphere of road transport and urban electric transport.
In the area of ​​inland road transport:
  • Resolution of the issue of travel privileges
  • Simplification of the business of road transport
  • Taxi market regulation
  • Regulation of activities of stations
In the field of international road transport:
  • Liberalization of procedures for freight and passenger international road transport
In the area of ​​technical policy:
  • Introduction of access to the road transport market in accordance with EU requirements
  • Establishment of  drivers and managers career development system

In the area of ​​urban electric transport:

  • Renewal of rolling stock by attraction of credit funds
In the field of legal support:
  • Development of a number of laws to amend the Law of Ukraine "On Automobile Transport" and a number of bylaws
  • Development of new and amendment of legislation in force related to urban electric transport (cashless fare, etc.).