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RHA objects successfully to application
Page 51
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• An ex-director of a haulage company which had gone into liquidation and had debts still outstanding could not be considered a fit and proper person to hold an operators' licence.
This was the submission made by the RHA to the Northern LA, Mr J. A. T. Hanlon, at Durham on Monday, when the association successfully objected to an application by Mr J. H. McGrady, of White-le-Head, Tantobie, for a new 0 licence to cover one vehicle.
It was stated that Mr McGradytacibeen director and secretary of Annfield Haulage Ltd, a company which is now in liquidation and owes substantial sums of money to unsecured creditors.
It was said that for several years preceding its liquidation Annfield Haulage had averaged an annual turnover of around £40,000 while its profits had never exceeded £200. In certain years, in fact, there had been losses of up to £250.
In support of the application, letters from three companies were produced which stated that if the licence were granted they would be prepared to hire the vehicle under contract. Representing Mr McGrady, Mr C. L. Kelly said that the company had fallen into difficulties in November when a new opencast mining contract had been entered into. He explained that shortly after entering into the contract the National Union of Mineworkers had started an overtime ban which greatly hampered work.
Giving evidence, Mr McGrady said that debts incurred would have not bees so great had it not been for this work to rule and added that other hauliers had also suffered from a general decline in business.
In his submission to the LA Mr J. D. Reid, for the RHA, said that it was obvious that Mr McGrady, an ex-director of a liquidated haulage company, intended to operate one of his old vehicles, from his old base, and to use three of his old customers at least. He submitted that under the circumstances Mr McGrady could not be considered a fit and proper person to hold a licence.
After referring to the Transport Act, 1968, Mr Hanlon said that he was bound to agree with the RHA and therefore refused the application.