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Save the tiddlers from the sharks
Page 26
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TAM SOR RY to read of yet another freight forwarder going bust and, as usual, leaving subcontractors and owner-drivers in financial difficulties.
This is a perennial problem in transport as most commercial organisations will not deal direct with small operators even though they do a good and effective job. Instead they prefer —for obvious reasons of administration— to use forwarders even though they charge them more money.
The Limited Company—a basically dishonest concept behind which the unscrupulous can and often do hide — is the scourge of small operators who are usually sole traders or partnerships and by definition must always face their own financial responsibilities.
How many owner-drivers have time to carry out credit checks when offered work they desperately need? They take risks all the time — and, even if they do look up a company's details at Companies House, unless it's a large plc, nothing much more than its directors and shareholders are shown bacause small companies are exempt from having to give details about accour !s,profit or loss; making it a poin dess exercise.
I don't know what the answer is. But isn't it time t ; .c authorities changed the rules which allow companies to give out work one day, knowing full well they will go into liquidation the next—and some then reappearing like the 'phoenix'?
Stephen David Leeds