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International licence granted despite debt

17th June 2010, Page 22
17th June 2010
Page 22
Page 22, 17th June 2010 — International licence granted despite debt
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Which of the following most accurately describes the problem?

TC first checked that company did not follow lead of a previous operation that ran into trouble for poor accounts.

A KENT OPERATOR has been granted a new international licence for three vehicles and six trailers despite owing £27,000 to HM Revenue & Customs (HMRC) as a result of the failure of a previous operation.

ETW Logistics of Bexley, Kent. had been called before an Eastbourne hearing by South-Eastern and Metropolitan Traffic Commissioner (TC) Philip Brown. ETW's director Tracy Evans had previously been a director of Erith Truck Wash. an operation holding an international licence for three vehicles that ceased trading in October 2009. She had resigned as a director in 2006 due to ill health.

Douglas Phillips, the transport manager for ETW Logistics, had also been a director of Erith Truck Wash.

For the company-. Jeremy Fears said that all creditors of Erith Truck Wash had been paid except for HMRC.

Negotiations over a disputed amount of £27,000 were continuing. Erith Truck Wash had not gone into receivership, administration or liquidation, but was wound-up on the advice of the company's accountant. The TC agreed that finance for the new application was in order, but was concerned about the management of the operation: "I am trying to find out who is doing what so that the history of the Erith Truck Wash licence won't be repeated."

Fears said the company would have two CPC holders: Douglas Phillips and his deputy, Paul Price. Tracy Evans is sole director. The TC heard that other businesses at the 2.5-acre Bexley site run by Evans, Phillips and his family include: a CV bodybuilding operation; a truck wash; a truck park and the provision of parking and warehousing for other operators.

Phillips said he would look after the 0-licence. The other businesses have their own managers.

Tracy Evans explained that Erith Truck Wash had run into financial problems, in part because they met their accountant only once a year. At one point they thought he had gone missing, but he had. in fact, died. She saw the new accountant monthly and had received training on profit and loss. When asked by the TC, she admitted the old system meant she did not know what the Erith Truck Wash balances were and would have faced difficulty proving financial standing.

The TC granted the application in full and revoked the licence held by Erith Truck Wash.That company had been dissolved on 1 June.


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