Decision

Decision for JCT Travel Ltd (PC1133210) and James William Owen - Transport Manager

Published 30 December 2020

In the North West of England

Note of Decision

1. Reasons

The operator appeared before me today represented by Christopher Cyprus, the sole director, and Mr James William (“Jim”) Owen, the nominated transport manager. I also heard evidence from Vehicle Examiner Chan whose report was accepted fully by Mr Cyprus.

The Public Inquiry was opened on 5 November 2020 but adjourned to today after the operator failed to provide any documentation in advance of the hearing.

The required documentation was supplied subsequently in accordance with my direction’s on 5 November 2020.

I was also supplied with evidence that in the interim period, Mr Cyprus had complied with my direction by attending an Operator Licence Awareness Training course. Mr Owen had also attended a two-day Transport Manager CPC refresher course in accordance with my previous direction.

Financial evidence had been provided. Although this fell a few days short of the full 3-month period requested, I am content to accept the evidence and that it shows an average, in excess of, the required amount of financial standing.

I also recommended that the operator should consider using the interval between today (5th November 2020) and the Public Inquiry to obtain an independent audit report of its maintenance and driver’s hours system. Mr Cyprus explained he had considered that and had decided that he would wait until the early part of 2021 to allow 6 months since he had taken sole control of the business. I do not consider that explanation is unreasonable.

The operator was initially called up as a result of an unsatisfactory DVSA maintenance inspection by Mr Chan completed in December 2019.

There was also a history of prohibitions with the most recent one in February 2020 at an MoT test when a vehicle was found to have an obvious brake fluid leak.

At the time of the DVSA investigation, [REDACTED]was also a director of the operator. He was removed from the Companies House register on 20 August 2020. One of the other persons with a controlling interest in the operator is named as [REDACTED]. The Transport Manager from the issue of the licence in 2015 to 18 August 2020 was [REDACTED]. [REDACTED] resigned from all transport manager roles around that time and said he would not be undertaking such work in future because of [REDACTED].

It was Mr Cyprus’ case that his involvement in the company previously had been as finance director and that management of the licence principally fell to [REDACTED] and [REDACTED]. This was supported by the impression gained by VE Chan during his investigation. [REDACTED] and [REDACTED] had both since departed the business which had been under [REDACTED] sole control since 1 August 2020.

Whilst Mr Cyprus put his case on the basis that the operator had effectively turned a fresh page with his taking sole control, there are other issues of concern which have arisen since that date.

First, there is the issue surrounding the discs displayed in the vehicles. The discs issued to the operator were returned by [REDACTED] to the Central Licensing Office in September 2020 (this was confirmed by [REDACTED] himself when he attended the initial hearing on 5 November 2020). I am satisfied that Mr Cyprus was unaware at the time that [REDACTED] had taken that step. I am also satisfied that [REDACTED] did not have authority to remove and return the discs and cannot see any good reason why he would have taken that action other than to cause difficulties for the operator. The position has now been rectified and I do make an allowance that this appears to have been a situation engineered to the operator’s detriment by others.

However, Mr Cyprus and Mr Owen remained unaware that the discs had been returned until I drew it to their attention on 5 November 2020.

This is unacceptable. Both the director and Transport Manager ought to have checked the discs displayed in the vehicles were correct and valid. It should also have been apparent from checking the vehicle online licensing system that no discs were issued to the operator.

The other area of significant concern is the operator’s recent MoT record. Since 1 September 2020 (the period when Mr Cyprus and Mr Owen have been in sole control of the licence) 5 vehicles have been presented for test. Only 2 have passed on first presentation. 3 vehicles have failed on both initial and subsequent presentation for test. This is a failure rate of 60% which compares very poorly with the national average for initial failure of 16.43%.

The detailed failings are also a concern as they include issues such as suspension, steering and tyres.

In balancing the decision, I have treated the change in management as a positive for now (although I did still require reassurance it will make a material difference to the operator’s compliance). I also give credit to Mr Cyprus and Mr Owen for attending the relevant training courses.

I was impressed by the passion shown by Mr Cyprus for the business and I do find he is truly committed to achieving compliance.

Most significantly, I treat as a positive the lack of any previous attendance at a public inquiry or other regulatory action against the operator during the 5-year history of the licence. I also note the similar lack of any previous action against either Mr Cyprus or Mr Owen individually.

There are several negative features however, starting with the very poor findings of the maintenance investigation in 2019. Whilst I accept that 12 months have passed since that inspection, the recent MoT history suggests that issues are persisting.

I find there has been ineffective management control and insufficient systems and procedures in place at present to prevent operator licence compliance failings. I am concerned that the change in management has not yet fully rectified the situation.

I have asked myself the question posed in Priority Freight 2009/225 namely, “how likely is it that this operator will, in future, operate in compliance with the operator’s licensing regime?”. Whilst I have some reservations, I am prepared to give the operator the benefit of the doubt that it is capable of achieving compliance. The willingness to offer the undertakings above provides further reassurance and I will give the operator one final opportunity to prove it can be trusted to operate compliantly.

Nevertheless, having balanced all these factors, I consider that the operator’s failings do fall into the category of “serious to severe” and regulatory action against the licence is justified, having taken account of the Senior Traffic Commissioner’s Guidance Document No.10 “The Principles of Decision-Making and the Concept of Proportionality”. I determine that a short period of suspension is appropriate here to set a marker on future expectations. I have fixed the dates to coincide with the school holiday period so that the beneficiaries of the school transport services are not adversely impacted.

I also record a formal warning on the licence.

I previously approved the appointment of Mr Owen as Transport Manager on an interim basis until the resumed Public Inquiry today. I also granted the variation of the operating centre to Minara Yard, M22 4RB on a similar interim basis. I now confirm that both those decisions can take full effect following the resumed hearing on 16 December 2020.

[REDACTED]

I accept that Mr Owen has been the nominated Transport Manager for some time on another smaller licence (2 vehicles) without any adverse history. I am also reassured by Mr Owen’s attendance at a CPC refresher course although I should note he accepted this was the first formal training he had undertaken since attaining his CPC qualification in 1986.

I am aware that he has now submitted an application to take on a third position as Transport Manager. The operator concerned is of similar size to JCT Travel Ltd (10 vehicles) and it is also awaiting a Public Inquiry for consideration of regulatory action in relation to a poor maintenance and compliance history. Whilst those matters pre-dated Mr Owen’s involvement with the operator, it is clearly an undertaking that is going to require substantial work by its transport manager to achieve compliance (as with the JCT Travel licence). I am concerned that Mr Owen may be overwhelmed by the task on acting as Transport Manger for 2 licences of a similar size and facing similar challenges.

For that reason I accept the Statement of Intent that Mr Owen has given me that he will not seek appointment as transport manager on any licence other than this licence for JCT Travel and his existing appointment for Keith Whittam trading as Rixton Travel PC2002570 without my prior approval.

In consequence I expect Mr Owen to withdraw his nomination as transport manager for Bestway Minibuses Limited PC1120654 by 8 January 2021.

Gerallt Evans

Traffic Commissioner for the North West of England

17 December 2020