RHA blocks 0-licence
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THE ROAD Haulage Association has successfully blocked a West Yorkshire haulier's bid for a new operator's licence.
The RI [A's objection to Navigation Haulage (Horbury) Ltd's application was based on its connection with the I laley family, one of whose businesses — A. Haley and Son (Transport) Ltd — had crashed owing 280,000.
The company had sought a licence for six vehicles and two trailers.
Certain allegations were made against two of its original directors, Richard Haley and Richard Owen Haley, at a hearing in July.
At a further hearing in September it was said that they had resigned and transferred their shareholding to a third director and the transport manager, Graham Parker.
It was said then that the company did not have a bank account of its own and that all monies earned were paid into a bank account held by Hope Engineering Services, a firm in which Richard Haley was a partner (CM, September 21). When the hearing was resumed, Parker said Navigation Haulage had opened a hank account of its own on October 28 and it currently had a balance of :6,538.24.
Parker said that he had not produced a statement of the company's assets and liabilities or of its capital structure. He denied that he had given false evidence concerning shareholdings and the directors of the company on previous occasions.
The company's books showed that he and Ian Long, a driver, each held one share.
RHA counsel Stephen Kirkbright argued that the Haleys had lost their repute in failing to answer the allegations made against them in July and because of their activities in the liquidated A. Haley and Son Ltd.
The question of who actually controlled Navigation Haulage had to be looked at.
The evidence showed that the Haleys had a material effect on the operation Of Navigation Haulage and there was ample evidence that its finance was controlled by Hope Engineering.
There was no evidence at
all about the financial base of the company or the size of its working capital. The menmrandum and articles of association did not authorise the company to operate as a Ii aulier and in such circumstances it could not hold an operator's licence.
Refusing a licence, North Eastern Deputy Licensing Authority Norman Moody said that he hid been misled on a number of occasions by Parker. He was not satisfied about Parker's reliability as a witness but that was not sufficient to deprive inin of his repute.
It was clear, however, that all the finances were tightly under the control of Mr Haley, senior. I le did not believe that Mr Haley no longer had any interest in the company. Because of that he had to look at Mr lialey's repute.
Ile found that he was of insufficient repute in view of the way that the business A. Haley and Son Limited had been effected, and that Navigation Haulage was not financially sound, as it had failed to show that it had an adequate supply of working capital.