CJT licence rejected by TC over phoenix firm fears
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By Roger Brown
TRAFFIC COMMISSIONER (TC) for Scotland Joan Aitken has rejected an O-licence application from Dumfries-based CJT Logistics, saying she believed there were signs it was a phoenix company.
In a written decision following a May public inquiry in Edinburgh, the TC turned down the bid for three vehicles and the same number of trailers from CJT director Paul Toner.
An inquiry in April 2006 had looked at a previous company run by Toner, TS Refrigerated Transport, authorised for two vehicles and the same number of trailers. It was alleged at the hearing that Toner had not been truthful with the TC about operating a vehicle without authority.
Toner subsequently lost his repute, was disqualiied for three years, and TS had its licence revoked.
However, immediately after the inquiry, Toner's wife and her brother-in-law formed another company called KT International Transport, picking up the trucks from the revoked and disqualiied business.
Toner secured contracts for KT and drove for the company, while his wife carried out many of the administration duties. The Toners’ address was also used as the correspondence address.
Aitken said she was not satisied as to the repute or inancial standing of Toner, and added: “As KT had not been called to this inquiry, I am not in a position to make a inding in fact that KT was a front for Mr Toner – but there are signs of ‘phoenixism’.
“Financial standing has not been established for this application. Mr Toner has not satisied me as to repute, I do not ind him to be trustworthy, and I wonder if he is capable of telling the truth.”