Decision

Decision for RSJ Skip Hire Ltd

Published 28 May 2021

0.1 WEST MIDLANDS TRAFFIC AREA

1. DECISION OF THE TRAFFIC COMMISSIONER

1.1 PUBLIC INQUIRY HELD ON 6 MAY 2021

1.2 APPLICANT: RSJ SKIP HIRE LTD

2. Background

2.1 Skip 4 U Ltd

On 7 October 2020 I revoked the restricted goods vehicles operator licence held by Skip 4 U Ltd and disqualified both the company and its director Sukhchain Singh from holding a licence for two years. I found that the company had been widely non-compliant: its MOT pass rate was very poor, vehicles had missed their due dates for safety inspections, drivers were not reporting defects in writing, and there was no oversight of drivers’ hours. Despite various audits bringing these issues to the company’s attention, the director Sukhchain Singh had taken no effective action: he appeared to have no interest in managing a compliant business.

2.2 Application from RSJ Skip Hire Ltd

The revocation of the Skip 4 U Ltd licence took effect on 4 November 2020. On 17 November 2020 the central licensing office (CLO) in Leeds received an application for a restricted goods vehicles operator licence from RSJ Skip Hire Ltd, whose sole director is Robin Singh Johal, the (then) 20 year old son of Sukhchain Singh. Robin Singh Johal had attended the public inquiry in Birmingham on 7 October 2020, although he did not declare this fact on the application form.

CLO noted that the registered address of RSJ Skip Hire Ltd was the same as the registered address of Skip 4 U Ltd. The proposed operating centre of RSJ Skip Hire Ltd was the same – 38 Anne Road, Smethwick – as the operating centre of Skip 4 U Ltd. The application by RSJ was for three vehicles. Skip 4 U had been authorised for four vehicles but had had three vehicles specified on its licence at the time of the public inquiry and revocation of its licence.

In his response to a request by CLO for further information about the links between the two companies, Robin Singh Johal stated that he had assisted his father Sukhchain Singh in the last 12-18 months of operation at Skip 4 U Ltd. Sukhchain Singh would be employed by RSJ Skip Hire Ltd as a driver “due to his vast knowledge and experience of skip hire in the local area”.

3. Public inquiry

Because of concerns that the application from RSJ Skip Hire Ltd might be a front for continued operations – in defiance of the revocation of its licence and the disqualification of the company and its director - by Skip 4 U Ltd, I decided to consider the application at a public inquiry. The inquiry was held by video on MS Teams on 6 May 2021. Present were Robin Singh Johal and Mark Hurst, a transport consultant brought in by RSJ to assist with compliance.

Robin Singh Johal stated that RSJ Skip Hire Ltd was the same business as Skip 4 U Ltd. His father Sukhchain Singh would be involved as a driver only. Of the vehicles on the licence of Skip 4 U at the time of revocation all but one had been sold: the exception, KE06 CYU, had been SORNed since November and had moved only for yard work. Hurst Transport Services would be assisting with compliance on a monthly basis. Documents showing the intended procedures for complying with maintenance and drivers’ hours requirements were presented to me.

I noted from the bank statements presented in support of the application that Robin Singh Johal was clearly using the company’s bank account to pay for a myriad of personal items, which was not an appropriate use of company funds. On the positive side, I noted that he had attended an operator licence management course shortly before the public inquiry in October 2020.

I adjourned the inquiry so that the applicant could produce evidence from the tachograph unit of mileage driven by vehicle KE06 CYU since 4 November 2020. A day later Mr Hurst contacted by clerk to say that owing to technical problems with the tachograph unit this information could not be provided.

4. Consideration

I have considered this application carefully. I conclude that I am not satisfied as to the fitness of the company and its director Robin Singh Johal to hold an operator’s licence, given the connection to the revoked and disqualified company Skip 4 U Ltd and director Sukhchain Singh. As Robin Singh Johal accepted (and I give him credit for being frank), RSJ Skip Hire Ltd is the same business as Skip 4 U Ltd, with the same address and same operating centre. Although it was the stated intention that disqualified director Sukhchain Singh would be involved only as a driver, I note that reference was made to his “vast knowledge and experience of the skip hire business”. It stretches credulity that Sukhchain Singh, given this vast knowledge, will confine his involvement to driving and in any case it is impossible to verify or enforce such a limitation. Given Robin Singh Johal’s very young age and obvious unfamiliarity with the role and responsibility of a company director (viz the use of the company’s money to fund personal expenditure) I have no confidence that he is up to the task of managing the company independently of the influence of his father. In paragraph 22 of its decision T2015/16 Heavy Haulage (Scotland) Ltd the Upper Tribunal confirmed that family connections could go to the fitness or repute of a company.

Robin Singh Johal did not come across to me at the inquiry as possessing the necessary drive, determination or knowledge to run his own independent skip hire business compliantly. Indeed, he was himself closely involved in the licence of Skip 4 U Ltd, assisting his father Sukhchain Singh for 12-18 months. Had he been a director of that company I would have included him in the disqualification order, as clearly the assistance he provided was wholly insufficient to prevent persistent and widespread non-compliance.

If I were to grant this application, then my revocation and disqualification orders against Skip 4 U Ltd would have no practical effect. I am therefore refusing the application, pursuant to Section 13B of the 1995 Act.

Nicholas Denton

Traffic Commissioner

10 May 2021