"errrr thats why people pay a licence fee .."
That may be why you think you pay a licence fee, however I suspect that the MSA is doing licences more or less at cost.
Last time I checked, businesses were claiming that it cost around £50 just to check an invoice (the basis of the low cost item invoice scam, many companies will approve payment without checking if the invoice is less than £50 because it costs more to check than the invoice is worth.)
So doing the checks, printing the licence and posting it back may cost most of the licence fee.
Of course, if there is no consequence for forgetting one's licence, more people will do it and one will have to start checking that the identity of the driver, because there will be a small number who claim to be driver X but are in fact Driver Y. (I say this because every year there's a small number who seem to go to great lengths to drive while suspended and so on.)
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