Just a thought surrounding the recent stories about companies going to the wall.
It seems that many head into receivership and at the same time a new application goes to the DVSA, maybe with the same transport manager or director, or both, with linked addresses.
It also seems that they operate under numerous company names but with a number of licences in each different company, maybe 15 vehicles in one and 15 in another.
I'm sure this might make very reasonable financial planning but this method of ‘splitting’ the licences appears to allow an opening of a ‘grey area’.
When renewals are due and financial standing needs to be proven, it may be a lot easier to show the money required for 15 vehicles, than for 30 that the company may be actually operating.
Money can be moved to the liquid company when closing the bad one, and I'm unsure whether the DVSA would tie up the "association”.
Surely any decision on renewals and new applications needs to assess the person, any linked addresses, mutual transport managers of what is collectively a "group" and make sure they are bona fide and are being made in good repute?
Mark Hodgson, MD,
Coatham Coaches
