Moves to tackle a perceived conflict of interest over road transport licensing suffered a setback in Tynwald.

A proposed order to transfer the functions of the Department of Infrastructure in respect of road transport licensing to the Office of Fair Trading failed to carry, after MHKs votes in favour, but MLCs against.

The motion will now go to a combined vote in October.

Policy and Reform Minister Chris Thomas insisted: ’The RTLC is not being abolished. It will continue to exist as an independent statutory regulatory body. It is not a merger.’

He said it was a ’practical, pragmatic step towards a perfect solution.’

The DoI is currently the department responsible for making regulations that govern how the Road Transport Licensing Committee operates but at the same time it is also the largest operator of vehicles registered with that committee.

This potential conflict has been raised by taxi drivers opposed to the granting to Bus Vannin of licences to operate dial-a-ride services - an issue currently being investigated by a Tynwald scrutiny committee.

Chris Robertshaw (Douglas East) dismissed the transfer of the RTLC to the OFT as a ’superficial response to a much deeper ill that must be addressed’ and it would be nothing more than ’jumping out of the pan into the fire’.

Chief Minister Howard Quayle opposed a move to adjourn the debate, saying that the conflict of interest, perceived or actual, would likely increase as in November the DoI will have to comply with new regulations governing the safe use of HGVs.

He said a consultation on taxi legislation has already been delayed due to complaints from the industry about Bus Vannin’s Connect dial-a-ride services.

He committed to an early review of the RTLC but claimed what is proposed was ’vastly superior’ to the current situation.

Speaker Juan Watterson queried why this must be done now. ’This is a fudge,’ he said.

DEFA Minister Geoffrey Boot said the administration for the RTLC already sits in DEFA.

Tim Baker (Ayre and Michael) said there are ’clear conflicts of interest and clear issues with the RTLC’ but on balance it would better to proceed than not proceed.

OFT chairman Martyn Perkins said: ’We all agreed that it should be transferred out of the DoI. The OFT is seen as the best fit. Both entities occupy offices in St John’s. They operate in a similar manner in the interests of the public.’

He said the RTLC would remain as a totally legally independent body ’sitting within or virtually alongside’ the OFT. ’It will be free to makes its own unfettered decision,’ he said.