As with many applications or ‘regulatory’ public inquiries, the Traffic Commissioner (TC) has before her or him a set of papers prepared by their case worker. The fact a public inquiry has been convened means there are concerns. The papers alone cannot determine the TCs decision—one way or the other. It is imperative therefore that applicants or licence holders prepare their case thoroughly. If prepared properly, it will help assist the TC to make a favourable decision. If not, the TC may conclude that the case is as it appears on the papers – or even worse.

We recently represented a company that applied for an O Licence (the applicant). The matter was brought to public inquiry because of serious concerns that the new company was either a front for a company that had gone into administration, and/or a phoenix arrangement was taking place; transport manager (TM) considerations; and the application form had not been completed correctly—causing an appreciable misrepresentation of the facts (The simple filling out of the application form is the first opportunity the TC has to see anything about the applicant, including whether they are trustworthy!)

After taking instructions, we could see there was plenty of scope to prepare a strong case for the grant of the application. The applicant’s connection to a company that had gone into administration: any links were tenuous and superficial. There was no phoenix arrangement because there were no substantive connections between the two entities, or relevant individuals. The incorrectly filled-out application form was a genuine error (even though it appeared otherwise).

On the professional competence issue, we advised that a replacement TM was necessary. The originally nominated TM was, in our opinion, not suitable in this case. A TM may have the qualification, but depending on the facts, more is required, including experience, actual knowledge and other capabilities. Our client accepted our advice and contracted another TM, contingent on the grant of the licence.

Most, if not all, of the TCs case directions were fully adhered to. Documentary evidence and representations were submitted two weeks in advance.

Most of the work for the inquiry was completed beforehand. That just left the hearing. We advised on what the hearing would entail and how best to present first-person evidence. Hearings can be particularly stressful, especially if things are left last minute, or not addressed properly. In the end, this hearing was fairly straightforward and relatively short. The TC was satisfied that the evidence submitted adequately addressed concerns. Further evidence and submissions were presented at the hearing. Assurances were given, including a willingness to have conducted an independent audit. As at the date of the hearing, it was clear that the applicant had a good knowledge of O Licence compliance requirements and of their specific kind of haulage work. The application was granted with immediate effect with authorisation for several HGVs.

We were instructed by a business primarily involved in farming and authorised to operate six large goods vehicles

The public inquiry was called before the Traffic Commissioner to consider the operator’s repute. Revocation, suspension, curtailment of the licence, and possible disqualification, were also under consideration (under sections 26(1)(b), 26(c)(iii), 26(e) and 26(f) and 35 of the Goods Vehicles (Licensing of Operators) Act 1995.

Background: the operator (like many operators) had not understood the consequences of changing its legal entity. In this case from a sole trader to limited company. And that, generally, in such circumstances, a licence must be applied for in the name of the new legal entity.

Over the period of some months, the operator had started to run some of the business through the limited company; some thought the sole tradership. Meanwhile, one of its HGVs was stopped by DVSA at a roadside encounter. The vehicle was unfortunately given an ‘S’ marked prohibition for significant failings in its braking system. After questioning the operator, the DVSA concluded that there had been an outright change of legal entity. There were also some other less-significant shortcomings, relating to finances, daily walkaround checks, and paperwork issues .

Together, these were serious failings to overcome at PI. Much would depend on how responsive to our advice the operator and transport manager would be.

We were instructed in good time, and promptly advised on all relevant matters. DVSA had concluded there had been a categoric legal entity change, but we were able to give our opinion on this somewhat nuanced area of law. We advised that this could easily lead to the revocation of the licence, but not necessarily. A robust response would be needed in all areas and any shortcomings remedied as soon as practicably possible.

After several meetings, our client and the TM were clear on what needed to be done before the PI. We also advised on what to expect at the PI itself, including what questions might be asked. The client was responsive and we managed to adhere to the OTC deadlines. During our instructions, other matters emerged—ones not raised in the TCs PI Brief papers. We advised on these also to pre-empt further potential questioning.

The hearing went as near-to-plan as could be expected. The operator and TM were well prepared for the hearing. They were able to fully satisfy the TC on most matters raised. The TC accepted our final submissions that there had never been any attempt to deceive or gain an unfair commercial advantage (there had been no such advantage ) and that any mistakes were inadvertent. We’d submitted supporting evidence in advance.

The simple decision was that the TC curtailed the margin on the licence for two weeks. This resulted in no material disadvantage to the operator. On a balance of probabilities, the TC was satisfied that the business would be compliant as the holder of a goods vehicle operator licence. The effect was that the operator was now in a position to continue using its O’licence without interruption, and run its well-established and successful farming business.

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