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Bell tolls for firm which was a 'front' for bankrupt operator
Page 39
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TC rejects relative's bid to run liquidated operation and revokes licence
A LIVERPOOL firm has been refused a licence after North-Western Traffic Commissioner Beverley Bell decided it was a 'front' for a bankrupt haulier.
Container Transport Services, which held a licence for six vehicles and seven trailers, had been called before the TC at a Golborne disciplinary inquiry. At the same time she was considering an application for a new national licence by Transport Services (Liverpool), a company which is currently operating under interim authority.
TC says 'no surrender'
The TC was told that Container Transport Services wished to surrender its licence as it was in compulsory liquidation. Its vehicles had been transferred to Transport Services (Liverpool) because that company's director, Ross Smith, had bought out the leases and would he employing the drivers.
Revoking that licence and disqualifying the company and its directors, David, Kenneth and Sandra Mercer, from holding an 0-licence for an indefinite period, the TC said it was too late to surrender the licence.
On behalf oll'ransport Services (Liverpool), it was said that Ross Smith was related to the Mercer family. When the company was offered to him in October by his cousin, Eric Mercer, Smith felt it was a good business opportunity.
Smith said Mercer had told him his company was going into liquidation and that Transport Services (Liverpool), which had been incorporated in June 2005, was offered to him for virtually nothing. Having looked at the situation Smith thought he could turn it round.
'Mc original directors had been Eric Mercer and his son David, hut the company did not employ Eric Mercer, as he was personally insolvent. Smith admitted that Mercer visited the operating centre about twice a week and probably still saw the vehicles come back at the end of the week. He also admitted that Mercer was involved in the payment of drivers, but said Mercer was not paid anything and was effectively working for nothing.
However, Smith later admitted that Mercer was being paid f90 a week (CM 30 March).
The TC refused the application, revoked the interim licence and disqualified Transport Services (Liverpool) and its directors from holding or obtaining an 0-licence in any Traffic Area for an indefinite period.
Application was a device
Bell was satisfied that the application was a device to allow the Mercer family, particularly Eric Mercer, to continue running commercial vehicles to service existing customers on the same contracts from the same operating centre with the same vehicles and transport manager, despite the liquidation of the previous company and the bankruptcy of Eric Mercer. •