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Sheafline loses licence

21st September 1989
Page 24
Page 24, 21st September 1989 — Sheafline loses licence
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Keywords : Business / Finance

• The 20vehicle PSV operator's licence held by Sheffield-based Sheaffine (PSV), the company set up by a co-operative of former South Yorkshire Transport drivers and engineering staff, has been revoked by North Eastern Licensing Authority Frederick Whalley.

Though the revocation will not take effect for three months, to enable Sheaf-line to negotiate a take-over, the decision could jeopardise Drawlane subsidiary North Western Road Car Co's plans to acquire a majority stake in the company.

At a public inquiry in Leeds, North Western managing director Robert Gregory said that if North Western went ahead with plans to acquire 75% of the equity they would have managerial control. They were looking for a minimum of six months to establish the engineering side and develop the company and would not be interested if the licence was shortened to less than six months' duration.

Vehicle examiner Norman White said that after 10 vehicles were examined in June, six immediate prohibitions, two delayed prohibitions and nine defect notices were issued. There had been no inspection reports since January 1989 for 50% of the vehicles operated.

Michael Waller, for Sheaf line, said there had been a failure by management to properly supervise the engineering department. Vehicles were acquired from a company that were supposed to be roadworthy, yet some of them did not even make the five-mile journey to Sheafline's depot.

Sheafline's managing director Jeffrey Holland said they had been trying since January to obtain a qualified fleet engineer. It was realised that the company needed outside assistance.

Whalley said he had serious misgivings whether Sheafline would continue to meet the financial standing requirements if the company stayed in business. Sheafline had operated buses that were in an unroadworthy condition, and that was a matter of great concern.

Because of the safety aspects, Whalley directed the vehicle inspectorate to carry out a full fleet inspection within the next seven to 10 days.


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