Decision

Decision for PTS Group (Norfolk) Ltd t/a Wrights Coaches

Published 14 December 2023

0.1 IN THE EASTERN TRAFFIC AREA

1. PTS GROUP (NORFOLK) LTD t/a WRIGHTS COACHES – PF2062348

1.1 TRAFFIC COMMISSIONER’S WRITTEN DECISION

2. Background

PTS Group (Norfolk) Ltd seeks a Standard International Public Passenger Vehicle Operator’s Licence authorising 7 vehicles. The Director is Matthew Wright. The proposed Transport Manager is Carl Joseph Crysell.

There is one proposed Operating Centre at Unit 10, Tilia Business Park, Tunstead Road, Hoveton NR12 8QN. Preventative Maintenance Inspections are to be carried out by Drurys Vehicle Services at 6-weekly intervals.

The applicant has given undertakings relating to the type of vehicle to be operated under any operator’s licence and to maintain a list of vehicles with the Licensing Team of the Office of the Traffic Commissioner, as well as regular brake testing.

This operator previously held a Standard International licence, PF2005316, from 12 September 2017. Mr Wright was the sole director and Transport Manager. They were called to a Public Inquiry on 6 September 2021 to consider an application to increase authority to 10 vehicles and to consider adverse reports received from a Vehicle Examiner and Traffic Examiner relating to extended inspection intervals, incomplete inspection records, failure in the driver defect reporting system, weak planning, risk to road safety as evidenced by prohibitions. The presiding Deputy Traffic Commissioner recorded adverse findings under sections 17(3)(a) – statement of intent, namely exceeding stated six weekly intervals, 17(3)(aa) – breach of undertakings, namely, failure to observe laws relating to driving and operation and drivers’ hours and tachograph rules, vehicles would be kept fit and serviceable and that maintenance records kept for 15 months; and 17(3)(e) – material change since the licence was granted. He found that that the operator was no longer of good repute, under section 17(1)(a). The licence was revoked from 23.45hrs on 6 October 2021. This applicant and Mr Wright were disqualified for a period of 12 months. The small window of recent compliance was not enough to satisfy the Commissioner that the operator had permanently changed its ways. This was simply too little, too late.

As Mr Wright is aware, his conduct as a vocational driver was also considered, noting that evidence from the Traffic Examiner. The Deputy Traffic Commissioner found that the allegations were made out and specifically referred to Mr Wright having removed his digital driver’s card on 13 March 2021 and then carried on driving that regulated vehicle for a significant length of time (231 kilometres) even after his involvement in a serious DVSA investigation for similar matters. The Traffic Examiner had observed that the initial case was one of the worst cases he had ever observed. Mr Wright knowingly made a false record on 25 May 2019, 8 June 2019, 11 June 2019, 30 June 2019, 15 July 2019, and 3 August 2019. He was disqualified from relying on his vocational entitlement for a period of 26 weeks.

3. Hearing

The Public Inquiry was listed for 18 July 2023, in Tribunal Room 1 of the Office of the Traffic Commissioner in Cambridge. The applicant was present in the form of the Director, Mr Wright, accompanied by the proposed CPC holder, Mr Crysell.

4. Issues

The public inquiry was called to allow the applicant further opportunity to satisfy me that the statutory criteria were met and specifically by reference to the following sections of the Public Passenger Vehicle Act 1981:

• 14ZC(2)(b) – good repute.

• 14ZC(2)(c) – financial standing.

• 14ZC(1)(a) – satisfactory facilities and arrangements for maintaining vehicles in a fit and serviceable condition.

• 14ZC(1)(b) – satisfactory arrangement to comply with the law regarding the driving and operation of vehicles (including drivers’ hours and tachographs).

The applicant was directed to lodge evidence in support by 4 July 2023, including financial, maintenance and other compliance documentation. Copy financial statements submitted prior to the hearing suggested sufficient finance, but admissible evidence was requested for the hearing. The applicant was given additional time and delayed the start of the hearing, but even then, its bank only supplied a verified top page. That was not accepted.

5. Determination

A letter dated 6 January 2023 from the Office of the Traffic Commissioner sought an explanation as to why the application had been made by the proposed CPC holder. The letter also sought further details regarding the revocation of the previous licence, and what had happened to the vehicles which had been specified on the PF2005316 and why the applicant’s website appeared to advertise the use of Public Service Vehicles. Further details were sought regarding the proposed Operating Centre and an l explanation of how the transport manager would meet the statutory duty.

The TM1 application referred to Mr Crysell’s appointment as the nominated Transport Manager on PK2044270, held by MC Personnel Transport Ltd, with no other employment. That licence allows authority for 12 vehicles over 3 Operating Centres. Mr Crysell was said to devote only 10 hours a week to those duties. Subsequent checks have shown that Mr Crysell was removed from that licence by the operator on 4 May 2023. He was then proposed as Transport Manager on an application made by Holkham Holiday Parks Ltd (PF2063878).

Mr Crysell responded in a letter dated 19 January 2023 (page 96 to 102) in which he confirmed the information supplied by Mr Wright. The letter was accompanied by a copy of a contract (page 114 to 120). He referred to his plans to cover his duties, which included 3 hours per week devoted to his own transport consultancy: CJC Transport Consultants Ltd (13469546). However, the driver declaration and gate-check forms at ages 120 and 122 also refer to that consultancy, calling into question the genuine link between the named CPC holder and this applicant. (I noted similar indications on the cover of the proposed driver handbook). Details and photographs of the proposed Operating Centre were also included.

In the response dated 18 January 2023, Mr Wright refers to the DVSA investigation, which commenced in October 2019 and resulted in the Public Inquiry in September 2021. He accepted those findings:

I write to you wish reference to the licence application (Licence Number PF2062348), and the undertakings which I as a business director must fulfil following a successful application process.

The company, and my self were subject to a lengthy Investigation process by the DVSA which commenced in October 2019, and resulted in a Public Inquiry in September 2021. Throughout the process I remained professional and co-operative with the DVSA examiner at the Public Enquiry even including that I was a “Very Nice Guy”. Throughout both my personal, and professional life I have always sought to treat others as I would wish to be treated myself, and I’m a firm believer that in life, sometimes – the nice guys do shine through. It is very much this philosophy I am bringing with this application.

What is clear though is that I fell very short of the mark, for being a compliant Coach Operator since the business began in 2017. We were undoubtedly a victim of our own success, and benefitted hugely from our own business model and a distinct lack of competition with other local companies falling apart around us over the past few years. However; that doesn’t justify my actions, and for that, I am, and will always be truly sorry. One of the fundamental principles of the Operator Licence regime, its distribution, and management is Trust, and I broke yours. Please be assured – this was born purely out of the desire to succeed, to make myself, my family, my friends, and my growing customer base proud – What that developed into however was a culture of “That will be OK”, and I truly understand now – That it wasn’t.

From when the investigation began in October 2019, right through to the Public Inquiry in September 2021 the company invested heavily in its assets. By the time of the Public Inquiry we were operating a fleet of vehicles all fitted with Digital Tachographs to ensure the download, and analysis could be carried out easily. We employed the services of a Transport Consultant who helped to guide us, implement changes within the business, and processes to help us function more effectively. I also completed a Transport Management Two Day Refreshed Course at Novadata in July 2021, and will now undertake these (despite bringing another Transport Manager into the business) on a 24 month basis. I have also booked onto an Operator Licence Awareness Course (30th January 2023) at Novadata. I have had time to reflect over the past 16 months, and there is a wide range of courses other their to aid my professional development – and this is something I am keen to develop. Its not also about learning in the classroom situation, but hearing from other people’s situations, learning from others, and benefitting from a wide range of skills others can bring.

Following the Public Inquiry in September 2021 I have completed a lot of Soul Searching; questioned myself – Is this truly what I want? Am I passionate enough to make it a success? Do I have the right support network to make sure the same mistakes don’t happen again? At the time of writing this letter – I believe the business now has the infrastructure in place to ensure it is, and will remain a continual success; being a compliant operator, but also being an operator that people look towards for inspiration – A case study to show that – if you work hard enough , you can turn the situation around; be an inspiration for others; making sure they don’t make the same mistakes as me in the short term. I think I underestimated the challenges which I would face, as a young slightly naïve 27 Year Old; about to embark on the realms of business ownership, and Coach Operating. Slightly wary about trusting others I made a few bad decisions. 16 months later – with a support network around the company I’m determined to make Wrights Coaches a success once more. Its not about conquering the world solo – it’s about having the right people around you to ensure the direction of the company, and its success becomes a joint effort. As the owner of a business I understand that I bear the ultimate responsibility for the business – But if there is an individual who specialises in a certain element of the business to help it function, develop and grow – It would be foolish of me to not utilise their skills.

Since the Public Inquiry – We have been operating effectively as a broker – Taking on Coach Hire bookings, and then sub-contracting them out to other local companies (We have been working with three in the local area). We take a commission/administration fee from the booking, and then pay the operator the rest. With regards to the vehicles owned by PTS Group (Norfolk) Ltd – They are currently on lease to P J Overy T/A Angies Tours. I have enclosed a fleet list within the application to show which vehicles are leased, to whom, and also which ones are SORN (With a certificate). Angies Tours have also had an investigation recently (Completed in December 2022) by the DVSA who confirmed that everything was in order in terms of the vehicle leases, and their maintenance.

Moving forward – The company has employed the services of Carl Crysell as Transport Manager, for which a Signed Contract is included within the application. We have also investigated, and are going to invest in Remote Download technology for the vehicles. This is through Transport Data Interchange whose programme we will use for the download, and analysis of tachograph data. All vehicles on return from Angies Tours, and before they were transferred back to Wrights Coaches will have a Remote Downloader fitted behind the Tachograph Unit. It is also company policy for all drivers to download their Driver Card at the end of each shift, and this will also become common practice. As a business we are going for Best Practice across our operations. This will also include a Roller-Break Test at every PMI.

Over the past 16 months we have built up a good relationship with Philip Overy, and Angies Tours and this is a relationship we are keen to maintain. Approximately two years ago I was told what I needed was a “Work Uncle” – Someone to show us the way, ensure we are operating in a compliant manner, asking the right questions to make sure we were keeping on top of our requirements as a licence holder, and also asking those thought provoking questions to ensure we stay focused. Philip has many years of experience within the transport industry, operating vehicles for a number of years. He has provided Wrights Coaches former employees with the stability they required, and at the same time offered an olive branch of friendship, and practical support. He knows the company is applying to hold its own licence once more, and supports us. We have had many discussions about transferring the vehicles back over to a new licence for PTS Group (Norfolk) Ltd, and we are both of the agreement that he helped me in the short term, and I would not disrespect him by taking them all back immediately. It would be a phased return of the vehicles which would work for both companies. Those conversations remain ongoing.

I am determined to make the future of the business a success, making those around us proud of our achievements. I also wish to make the traffic commissioner proud… Proud that we have been helped by the system, developed the business, and flourished as a result. I said to my family approximately six months ago – I want this period of reflection to be the best that has happened to the company. It enabled me to see the error of my ways, create a strategy, gain support, and flourish once more. I hope that I am given a chance to prove this to myself, and others.

He indicated his intention to attend an operator licence awareness course on 30 January 2023. The certificate at page 124 suggests that he had previously attended training with Novadata on 1 July 2021.

Mr Wright indicated that he had since been fulfilling the role of a broker, in effect taking coach hire bookings and then sub-contracting to three local companies. 8 of the 9 vehicles owned by PTS Group (Norfolk) Ltd were said to be leased to PJ Overy t/a Angies Tours (PF1120089). He referred to a recent DVSA investigation of that operator. The intention is to transfer the vehicles back to the applicant, if granted an operator’s licence. A copy of a Bus Hire contract for PTS Group (Norfolk) Ltd and unnamed ‘The Hiree’ dated 4 October 2021 had been received. An application to increase authority was received from Philip John Overy in August 2022.

Documents lodged in advance of the hearing included evidence of leasing and sub-contracting of work, with a note confirming that journeys are carried out by other operators, with attached invoice to Angies Tours for the hire of R70 PTS, Y70 PTS, Y25 PTS, W25 PTS, X25 PTS for October 2021 and invoices  from Angies Tours  dated 25, 18 October,  22 December 2021 and LJs Taxis Ltd dated 30 April 2022.

I asked whether the applicant was going to be involved as a package coach holiday operator and therefore whether there were financial contingency provisions in place, as per the requirements of the Package Travel and Linked Travel Arrangements Regulations 2018. The Director is considering a joint venture with Mr Overy but has no contingency arrangements in place at this time (see below). The applicant had been charging a commission/administration fee from the booking, and then paying the operator. It appeared that fees were paid in full rather than set-off for the lease of vehicles.

I noted that the proposed site is the same as the Operating Centre on the previous licence, although this application seeks to increase to 7 vehicles, but reference is made to 9 vehicles. I was unclear where they would be accommodated. The aerial photographs suggested 3 separate locations. The detailed photographs showed the entrance and barriers to the area, but only appeared to refer to one of those areas, with a couple of vehicles present. The representations suggested that delineation of the parking spaces (barriers) would be put in place. There is reference to the residence of the ‘on-site manager’. One of the descriptions refers to an area for 5 vehicles, and the invoice supplied for site rental also refers to 5 coaches.

I was referred to the intention to invest in remote downloading equipment for the vehicles and to have a Roller Brake test at every inspection, recorded as an undertaking. The applicant supplied a copy of the standard maintenance contract with Drurys dated 1 July 2023, a screen print example of the vehicle-check app with defect report dated 9 June 2021, a blank maintenance job card, electronic planner (which refers to inspection dates), the driver handbook (referred to above). The appendices and guidance, with the exception of the disciplinary policy, have all been produced through CJC Transport Consultants.

The Senior Traffic Commissioner’s Statutory Document No. 3 on Transport Managers refers to the requirement for a genuine link. It refers to the Upper Tribunal decision in 2012/013 Russet Red Ltd and the warning against tying in the provision of a transport manager with a consultancy service.

The applicant was given until 1 August 2023 to supply:

• Verified copies of the relevant financial statements.

• Confirmation that the contractual relationship with Mr Crysell refers to the supply of Transport Manager services only.

• Details of the proposed Operating Centre showing where the proposed 7 vehicles will be parked (with permission/invoicing), with sufficient capacity to meet the obligations on an operator’s licence including a driver walk round. The DVSA ATF contract suggests that areas must be at least 2 metres wider than the vehicles to be tested, to ensure that there is at least 1 metre free space on either side of the vehicle when the vehicle is being inspected, minor intrusions are permitted (defined as 0.2 metre depth by 0.2 metre width maximum). Additional free space may be required if reduced pollution or vehicle checks that require vehicle access lockers to be raised are to be undertaken. An annual test Class 5 requirement is for a bay at least 4.5 metres wide.

In addition, the applicant offered the following undertakings:

• Not to act as a package coach holiday operator.

• To commission an independent audit to be carried out by a DVSA-authorised audit provider, the RHA, CPT or other equivalent independent body. The audit will assess the systems for complying with the operator licence requirements, and the effectiveness with which those systems are implemented. The audit should cover at least the applicable elements in the annex to be supplied by the Office of the Traffic Commissioner. A copy of the audit report, together with the operator’s detailed proposals for implementing the report’s recommendations, must be sent to the Office of the Traffic Commissioner in Cambridge by the last working day in April 2024.

I reserved my decision to that date, but indicated that, even if I were to grant it would be with a robust warning as to future compliance.

I subsequently received, under cover of a letter dated 27 July 2023, certified bank statements, a site plan (with photographs to demonstrate the area available to comply with driver walk round requirements, confirmation of the contract with Mr Crysell. (Invoicing must refer to him and not via his consultancy.) Based on the site plan and photographs, I was satisfied as to the capacity of areas A and B to accommodate coaches with ability to carry out walk-round checks, in compliance with section 14ZC(1). However, whilst the applicant supplied details of the proposed Operating Centre showing where the proposed 7 vehicles will be parked, there was not the evidence of permission or invoicing beyond that observed during the hearing (see above). I therefore granted the application, subject to section 16(1) for a total authority of 5 vehicles.  The operator is at liberty to seek to vary that licence condition in future and in the meantime would be well advised to consider the published Statutory Guidance on the capacity of operating centres. The site plan will be attached to the licence record. Grant is subject to the two undertakings at paragraph 19 restricting the type of vehicle to be operated under the operator’s licence, to maintain a list of vehicles with the Licensing Team of the Office of the Traffic Commissioner, as well as regular brake testing.

5.1 R Turfitt

Traffic Commissioner

9 August 2023