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'Discount Concealed' allegation in bus grant case

8th November 1974
Page 23
Page 23, 8th November 1974 — 'Discount Concealed' allegation in bus grant case
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Which of the following most accurately describes the problem?

THE trial of five bus companies and eight men accused of offences over Government grants for new buses opened last week at Newport Crown Court. The case is expected to last about three weeks. (CM Nov 1).

Before the court were Moseley (Gloucester) Ltd, and director Christopher John Lane, 41, of Beecham Court, Loughborough; John Williams, 37, bus operator of Nottage Road, Porthcawl; Henley's Bus Services Ltd, Abertillery, and direc tor Arthur Henley, 60, of Tillery Street, Abertillery; Alan Barrington Smith, 34, bus operator of Denbigh Road, Newport; Edmunds Omnibus Services Ltd, Ebbw Vale and director James Barry Cunningham, 62, of Rassau, Ebbw Vale.

Moseley Ltd and Lane and Williams, are accused of dishonestly obtaining from the Department of the Environment for Mr Williams, £671.08 by falsely representing that he paid £8,763.55 for a new bus.

Moseley Ltd and Mr Lane are also accused of falsifying for Mr Williams' gain, a receipt stating they received £8,763.55 from Mr Williams.

It is further alleged that Moseley Ltd and Messrs Lane and Smith committed similar offences concerning £646.50 for Mr Smith for a new bus purported to cost £8,724.

Moseley, Mr Lane, Edmunds and Mr Cunningham are accused of the same offences concerning £707.59 for the Edmunds firm for a new bus purported to cost £11,358.02.

It is also alleged that the Moseley firm and Mr Lane committed similar offences concerning £1,564.60 for the gain of Hills (Tredegar) Ltd, Tredegar, for two new buses purported to cost £21,937.34.

Moseley, Mr Lane, Henleys and Mr Henley are accused of attempting to dishonestly obtain £671.08 for a new bus purported to cost £11,233.50 and of committing the receipt offence. All have pleaded not guilty.

Mr Esyr Lewis, QC, prosecuting, said that Government grants were made to persons operating buses for approved capital expenditure incurred in buying new buses for carrying the public.

The grant amounted to 25 per cent of the net expenditure but rose later to 50 per cent to encourage operators to buy new buses.

He said that Mr Lane was a contract sales manager and a director of Moseley, which was one of a small group of associated companies based at Loughborough which supplied new buses.

Mr Lewis said that in every case Moseley gave the bus operator who bought a bus from them a substantial discount off the price of the vehicle. ' He alleged that when Mr Lane was seen by the police, he told them it was the practice of the company to grant such a discount.

Mr Lewis said a discount was concealed by the bus operators when they applied for a grant to the Department of the Environment for a new bus. He alleged that the Department was deceived in each case by receipts issued on behalf of Moseley on the authority of Mr Lane which purported to show that operators had paid more money for buses than they had.