Licence for Ministry Contract Refused
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"Unfair to Other Operators" says Mr. Thom: Fresh Tenders to be Sought ?
WHILST acknowledging that they might not have any right to do so, the " South Eastern Traffic Commissioners, at Reading last week, refused to grant express licences to enable an operator to carry out a Ministry of Supply contract. They refused on the ground that the Ministry's system of obtaining tenders was unfair to other operators. The Commissioners indicated that they wished the Ministry to invite fresh tenders with all interested operators given equal opportunity.
They had been told that some operators had been given no opportunity to tender for journeys which they already operated, when the Ministry adopted a. lew policy towards competitive tendering. The application was made by Aldershot Ind District Traction Co., Ltd., to °perste assisted travel express services on five .outes to the National Gas Turbine 'istablishment at Pyestock. Creamline Motor Services (Bordon), Ltd., and Whites (Camberley), Ltd., objected.
Mr. M. A. B. King-Hamilton, Q.C., for 2reamline. sought to have the proceedngs nullified by submitting that the Viinistry, which awarded the contracts, was about to become defunct under Ziovernment reorganization. The chairnan, Mr. H. J. Thom, ruled that the learing should continue.
Since 1952, the three operators con:erned had provided services for the vlinistry by agreement, said Mr. A. I. :vans, traffic manager of Aldershot and Nstrict. This year the Ministry advised hem that existing arrangements would nd on October 31. New contracts, on • tender basis, would be entered into • nnually. Aldershot and District had leen successful in their tenders for the ourneys, which were the subject of 'he leering.
Mr. William Gronous, regional transon officer of the Ministry, said that he new policy was designed to obtain le best possible terms. Cross-examined y Mr. King-Hamilton, he agreed that :reamline operated seven routes at the lament, but were asked to tender for nly five routes. Aldershot and District ad been invited to tender for all routes.
Not Invited
He agreed that one route in particular, .om Alderlot, was operated now by reamline, but they had not been invited ti tender. Earlier, Mr. Gronous said sat a geographical principle had been &opted in deciding who should tender. re admitted that in regard to that parcular route he "might have slipped up." Mr. Gronous declined to reveal the ldershot and District tender fee, but Er, Evans told the Commissioners that s had quoted EN), equal to 2s. a mile. I answer to a question by Mr. Kingamilton, Mr. Evans and Mr. Gronous oth hotly denied that there had been sy suggestion that the rate would be cut
Aldershot and District were allowed operate the whole series of services. Cross-examined by Mr.. James mphlett, for Whites, Mr. Gronous said
that it was not Ministry policy to advertise tenders publicly, It was left to him to decide from whom tenders should be invited.
" You • set yourself up as a Traffic Commissioner?" asked Mr. Amphlett.
"1 don't set myself up as anything," replied Mr. Gronous.
Asked by the chairman if he now took the view that the tendering system was not quite as fair as it might be, Mr. Gronous replied: "1 am inclined to that view, yes."
"We are put in a very invidious position because I do not know what jurisdiction we have to criticize a tender system adopted by the Ministry," said the chairman. "But if you felt that this particular aspect of the case was such as to warrant your going back to the Ministry and suggesting that fresh tenders be asked for, that would be one way out of the difficulty.
"If you decide not to, it is incumbent upon us to decide whether we should refuse the application, on the ground that we felt the system is not as fair as it might be."
In an exchange of views with Mr. KingHamilton, during his submission, the chairman said that, notwithstanding the views of the Commissioners, the Minister had always, on appeal, granted a licence to a successful tenderer. The Commissioners, to save parties additional expense, were forced to adopt the Minister's guidance on that aspect of the matter.
Mr. King-Hamilton had said that the Commissioners' jurisdiction was not overruled by the grant of a contract, but the Commissioners took the view that their jurisdiction was ousted by the Minister's decisions on the point.
Mr. King-Hamilton submitted that as Creamline had paid for a licence which did not expire until February, 1961, they were entitled to use it. If Aldershot and District were granted a licence, there would then be two licences in existence to operate one service. In order to obviate that difficulty, the Commissioners would have to revoke Creamline's licence. He submitted, "with confidence," that they had no power to do this.
Special Category
Giving the Commissioners' decision, Mr. Thom said on the question of the objectors' licences not having expired, that contract services of that kind were in a Special category. There had been cases before of contracts being awarded to people other than those holding a licence. and the issue of a licence to the successful tenderer had followed,
" On the question of unfair tendering. we think we are on very delicate ground. We are not at all certain we have any title to criticize methods adopted by the Ministry of Supply, or anyone else. In this particular case, by following the guidance of the Minister on that point. we could achieve the fulfilment of a principle that we have advocated from the beginning. That is that when operations of this kind are to be the subject of assisted travel, we should take into consideration the potential loss to existing operators of day-to-day regular services.
"We consider that operation of stage and express services is a vital consideration, particularly the operation of unremunerative rural services. In this case. by following the Minister's guidance, we should be granting an aoplication by a company which is providing by far the largest proportion of stage services.
"However, we feel strongly about the turning out of operators who already hold licences when there are no complaints regarding their operations. It might have been more satisfactory if the Ministry of Supply in this instance had waited until the licences were about to expire before calling for tenders. We might be on quite wrong ground here, but our decision is that we are going to refuse this application and suggest that the Ministry of Supply call for fresh tenders on the basis of offering all to all."