PAAA instrumental in saving thousands of motorsport and aftermarket jobs and businesses from EU VNUK legislation
30th June 2021
The PAAA is delighted to report that together with other industry representatives and bodies, it has succeeded in stopping the EU from introducing compulsory third party insurance for all motorsport activities.
The proposed regulation that was put forward by a European Court of Justice, could have had a disasterous effect across the industry and directly impacted on many of the PAAA members’ and their customers’ businesses. PAAA representatives Phil Millington and Jonathan Douglas were well ahead of the other organisations and prevalent in their lobbying efforts when this issue first arose in 2017.
Their the representation paid off and the news about abandoning of the need for motor insurance when competing was confirmed on 22nd June 2021, following which the MIA published the following report:
MIA Report (published 23rd June 2021)
The EU Commission has announced they would exclude all vehicles intended exclusively for motorsport from new Motor Insurance rules, known by some as the VNUK law.
For seven years a European Court of Justice ruling threatened the entire sport and business of motorsport in the UK and Europe. This positive result comes after years of pro-active lobbying by the FIA, the Motorsport Industry Association (MIA) and others, including the UK government.
Dita Charanzova, MEP, Vice President of the European Parliament said “I’m glad we were able to find a good solution for Motor Sports in Europe… and managed to curb absurd overregulation of motorsport.”
“The proposed legislation would have closed down all UK and EU two and four wheeled sport” said Chris Aylett, Chief Executive of the Motorsport Industry Association (MIA). “The UK’s Motorsport Valley® alone has over 4,000 companies and 40,000 people employed in this £10bn industry. Not only would millions of fans have lost access to their sport, but those employed in engineering, hospitality, media, logistics, insurance, law, travel and many more, would have lost their jobs.”
The original proposal for new EU Motor Insurance rules reflected the VNUK case meaning motorsport collisions, minor or major, would need the same insurance cover as regular road traffic incidents. Estimates for insurance premiums were over £500m each year.
Grant Shapps, Transport Secretary, in February said the UK government had “always disagreed with this over-the-top law” and had no intention of implementing it. The UK’s Department for Transport continually pressed the EU to exclude motorsport and were supported, in Brussels, by the world governing body for motorsport, the FIA.
“The MIA’s campaign was supported by hundreds of our motorsport business partners across UK and Europe. We had to fight the ill-advised ruling from the highest court in the EU – a real David and Goliath battle” continued Chris Aylett “It’s been a long time coming but great to say ‘VNUK legislation is no longer a threat, so let's get racing!’”