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Bell rings licence changes for firms hit by 9/11 attack

18th March 2004, Page 35
18th March 2004
Page 35
Page 35, 18th March 2004 — Bell rings licence changes for firms hit by 9/11 attack
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Which of the following most accurately describes the problem?

A new haulier has been granted an interim licence to carry on the

work of two companies that have closed down. Mike Jewell repor NORTH-WESTERN Traffic Commissioner Beverley Bell revoked the licence of Gallagher Transport Services and granted an interim licence to Widnes-based CCS (Merseyside) after she was told the events in the United States on 11 September 2001 led to the liquidation of two associated Cheshire companies.

CCS had sought a new national licence for 14 vehicles and 20 trailers based at Gallagher's former premises.

The TC heard that CCS was a new company formed in May by Jonathan Whiteley. Whiteley had previously worked as general manager for GTS Haulage, a company run by his father-inlaw.Thomas Gallagher.

That company had relied on a major contract with a prestigious car dealership which imported cars from America. It invested heavily in vehicles and trailers but the customer's business was badly affected by the events of 11 September when supplies dried up.

As a result GTS Haulage began losing money and went into liquidation in January 2003. Its licence was surrendered.

The directors of Gallagher Transport Services were Thomas Gallagher and his wife. That company was engaged in Continental haulage but took on some of the work left by GTS. Thomas Gallagher resigned as a director in January 2003,1eaving his wife as sole director.

The car dealership continued to have problems and it shut down for various periods.That led to the liquidation of Gallagher Transport Services in July. Whiteley was given the op portunity to take on the work from the car dealership, which had now recovered from its problems. He did not have sufficient investment and funds were provided by John Deveney, the managing director of JMD (Haulage) of St Helens.

Whiteley said his wife and Deveney were each 50% shareholders in CCS. Both Thomas Gallagher and his wife were employed by CCS. The nominated transport manager had formerly been with Gallagher Transport.

CCS had started work for the customer at the end of August, carrying out a shunting operation within its premises which did not require an 0-licence. CCS drivers were driving their subcontractor's vehicles; the subcontractor being JMD (Haulage). Eight vehicles were being operated in this way

Vehicles stood idle

In reply to the TC.Whiteley said those vehicles were former GallagherTransport vehicles.They had been put on the JMD (Haulage) licence in November and had stood idle between August and November.

The vehicles were insured by CCS. which paid and instructed the drivers. CCS also invoiced for the work.The company had 13 vehicles, Between August and November the work was carried out by vehicles owned by JMD (Haulage) but driven by CCS drivers.

Transport manager Stewart Crowe said the vehicles had initially started operation in August but were taken off the road when it was realised that an interim licence w; coming through. Thomas Gallagher s was not a case of a phoenix company. H his wife had lost almost £100,000 over th two years, not something usually aimed illegal running.

The TC revoked the Gallagher Trai licence and granted CCS an interim liceno receiving undertakings in relation to the pi tion of financial evidence and attendance operatoesseminar. However she directed maintenance investigation should be card as soon as possible. the grant of the subst licence being dependent upon the result. I


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