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Lane called to accounts

17th September 1992
Page 20
Page 20, 17th September 1992 — Lane called to accounts
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Which of the following most accurately describes the problem?

• North Eastern Deputy Licensing Authority Brian Horner has decided to grant a new licence to Ken Lane Transport of Retford, Notts for a two-year period, pending the production of draft accounts for 1991/92.

The company was seeking an international licence for five vehicles and eight trailers.

It had been called before the DLA because cheques in payment of vehicle excise duty had bounced and it had series of convictions.

For the company, Ian Rothera said brothers Philip and Nicholas Lane were now the directors. In March 1986 the Eastern LA revoked its licence and a fresh licence was granted for a short period. In March 1988 that licence was revoked: a decision upheld on appeal to the transport tribunal. A further application for a licence was refused in March 1989.

The company had encountered problems over repute and financial standing when it was run by the brothers' father, Ken Lane. He was a autocratic man who made a number of illadvised decisions, said Rothera. He had got the company into a lot of difficulties, but since his death despite all odds, the company had survived.

The brothers' one remaining creditor was the Inland Revenue. The £60,000 debt was reducing and would be paid off by the end of the year.

The situation was still not on an even keel but if the brothers were allowed a licence then their prospects would be greatly improved. The bank had supported the company.

It was better to have people operating within the licensing system, rather than operating where the control was less, said Rothera.

Philip Lane said the company leased vehicles out and carried out maintenance on its own vehicle and other operators' vehicles. They made arrangements for their vehicles to be operated by other hauliers. These arrangements had sometimes failed, but generally the vehicles were operated lawfully.

The brothers had sold property so they could inject £80,000 into the business.

Horner commented that the accounts for 1990/91 did not give him much confidence. Without the injection of £80,000, there would be a large question mark financially.


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