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Fuel costs force firm to surrender licence
Page 27
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AN OPERATOR driven into Liquidation by bad debts and rising fuel prices surrendered its licence to North Western Traffic Commissioner Beverley Bell.
In accepting the surrender, Bell said it was a sad day for the company, Manchester-based Flex Direct, and the industry. as it would not be the first time an operator had strug gled with high fuel prices, which it was unable to pass on to customers.
Vehicle examiner Alan Chan said that since a previous public inquiry in January 2007. Flex Direct had recieved three inunediate and two delayed prohibitions. Although there had been some improvement, the stated inspection period of four weeks had been extended to five and six weeks. There was a 37% pass rate at annual test.
Gavin Francis, director at Rex Direct, said the company had gone into liquidation the previous week due to three large bad debts and high fuel costs. It was extremely difficult to get ahead in this industry and he planned to leave it.
The TC granted a new licence for five vehicles and three trailers to Flex Direct Transport — a company run by the parents of the present director of Flex Direct.
Flex Direct Transport had held an interim licence for more than 12 months. It had quite a few problems with maintenance providers. As a result, the company employed an ex-Vosa employee, but he had recently become very ill. The firm is now planning on using an external maintenance provider again.