AT THE HEART OF THE ROAD TRANSPORT INDUSTRY.

Call our Sales Team on 0208 912 2120

CASE ONE

27th March 2008, Page 23
27th March 2008
Page 23
Page 23, 27th March 2008 — CASE ONE
Close
Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Which of the following most accurately describes the problem?

DC Transport regains repute

A COMPANY THAT once ran for several months without an 0-licence has won a fresh licence at its second attempt.

DC Transport (Newport) went before the Welsh Deputy Traffic Commissioner, Fiona Harrington. The firm had applied for a licence for six vehicles and 25 trailers, and the DTC granted a licence for six vehicles and six trailers.

In June 2007, the DTC rejected the company's application for a licence for seven vehicles and 25 trailers after it had run without a licence for eight months (CM, 21 June 2007). Sole director of the company was Lee Morgans, the transport manager was David Cornfield, whose licence had been revoked and who had been declared bankrupt but had since been discharged, and the company secretary was his wife, Sarah.

Evidence was given that Cornfield's transport operation, which had run successfully since 1993 as a family business with 17 vehicles and trailers, collapsed in 2006 because of cash-flow problems, created by relying on a single customer who defaulted.

The company collapse left debts owing to creditors, including Lee Morgans. He was a subcontractor for the Cornfield business before its collapse, and had continued to sub-contract for the company using his own 0-licence. Morgans' involvement in the company was to enable some of the money owing to be repaid to him through director's remuneration. The company no longer intended to operate in steel haulage and was switching to food transportation. Consequently, only six trailers would be required to operate in conjunction with the six vehicles applied for, compared to the greater ratio of trailers to vehicles required in transporting steel products. The vehicles had not been operated since the previous public inquiry at significant cost to the business.

The DTC made the granting of a licence conditional on the firm producing its latest accounts, three months' bank statements and details of any overdraft facilities and/or an invoice-discounting facility within 14 days of the end of June and the end of December.


comments powered by Disqus