Wareham-based South Dorset Coaches has been given a formal warning by Traffic Commissioner (TC) Kevin Rooney in relation to a failure to maintain financial standing and maintenance shortcomings, subject to three vehicle maintenance undertakings.
When granting an application to add him as a transport manager (TM), TC Rooney issued a formal warning to Director Nicholas Hubbard personally of the need to ensure that everything said to a TC is true and correct.
The company holds a three-vehicle national O-Licence. Nicholas Hubbard and Anne Hubbard were directors of Swanage Taxis which held a seven-vehicle O-Licence. That licence fell to be continued at the end of February 2024.
Correspondence around the continuation process identified a lack of financial standing. The operator was invited to surrender that licence, but no surrender was received. The licence was revoked on 26 April 2024. That revocation triggered a request for finances and a maintenance investigation on South Dorset.
DVSA provided a maintenance report which showed significant shortcomings, including that vehicles were inspected by an unqualified technician with no undercover facilities.
The operator offered assurances to DVSA and an undertaking for an independent compliance audit, and the maintenance investigation was closed with a warning. The finances provided were short of that required and there was evidence of failed payments. In November 2024, the TC became aware that Swanage Taxis had entered insolvent liquidation.
Financial standing was not satisfied, and a period of grace was granted. In giving his evidence, it became apparent that Mr Hubbard was making statements that were plainly untrue. It was not clear whether he was mistaken in his recollection of events or whether it was a more deliberate action.
The TC adjourned the Inquiry to allow reflection on what had been said and for Mr Hubbard to be provided with the full set of relevant documents to refresh his memory.
When the hearing was reconvened Mr Hubbard accepted that he had made a mistake in his evidence given on the first day. Part of that was due to mis-remembering dates and part was because his TM application had been made by his wife on his behalf. Financial standing was now satisfied.
The TC remained concerned at the events leading to the liquidation of Swanage Taxis. He was told that an error by the accountants had led it to make claims for furlough payments during the COVID period which HMRC now says are not valid. Swanage Taxis had been unable to repay the furlough payments when their return had been demanded.
The TC considered that Mr Hubbard did not deliberately lie nor intend to mislead him when he gave untrue evidence at the first hearing. The final question was whether Mr Hubbard was party to deliberate false claims for furlough payments in 2021.
The operator’s evidence was that the accountants were responsible for the errors. Having assessed the credibility of each of them, the TC found that, on the balance of probabilities, they did not deliberately mis-claim furlough payments.
