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TC suspects application might be a front for failed company
Page 32
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NORTH-WESTERN Traffic Commissioner Beverley Bell has reserved her decision on whether to award a licence to a Liverpool operator while she considers whether the application is a front for a bankrupt haulier.
She was considering an application for a new national licence by Transport Services (Liverpool), which is currently operating under interim authority.
The company's nominated transport manager, James Byrne, was also transport manager of Container Transport Services (CTS), which held a licence for six vehicles and seven trailers. That company wished to surrender its licence as it was in compulsory liquidation.
CTS held no assets — its vehicles had been transferred to Transport Services (Liverpool). Ross Smith, that company's director, had bought out the leases because he was taking on the drivers.
Revoking the CTS 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 that it was too late for CTS to surrender its licence.
She heard that Smith was related to the Mercer family and had felt it was a good business opportunity to take over the company when it was offered to him in October by his cousin Eric Mercer.
The TC said she had to be satisfied that this was a proper arms-length transaction rather than a "front".
Smith said Mercer had told him his company was going in to liq uidation; Transport Services (Liverpool), which was incorporated in June 2005, was virtually offered to him for nothing.
The original directors had been Eric Mercer and his son David. Eric Mercer was not employed by the company as he was personally insolvent. Smith admitted that Mercer visited the operating centre about twice a week and was involved in paying the drivers. After initially denying that Mercer was paid, Smith later admitted that he was paid /90 a week.
James Byrne said that when he worked for CTS, Eric Mercer had seemed to run the company; Kenneth Mercer was one of the current drivers.
The TC will announce her decision in writing.