 Traffic commissioners have a
really important role in keeping fair and open competition throughout the
industry.
When someone acts as a front
for another business, the regulators don’t know who they’re licensing.
That’s
why regulatory action at public inquiry is an integral part of stamping fronting
out.
A coach company from
Wolverhampton received this message the hard way when the West Midlands Traffic
Commissioner, Nick Denton, refused its licence application.
The firm had obvious
connections to a revoked licence with a history of non-compliance and Mr Denton
wasn’t prepared to let them carry passengers and run vehicles.
For a start, the application
was made just days after the revocation of another PSV licence. This raised
concerns with licensing staff in Leeds. Discrepancies were also uncovered between
the information on the application form and Companies House records.
Mr Denton said that, on the
balance of probability, the application “started out as a front, to allow continued
operations” for the revoked operator.
Using the licence of a
different entity to conceal the fact that you’re the actual operator is
fronting. And it’s even more serious if the entity hiding behind the front is
already banned or has had action taken against it.
Fronting goes entirely against road safety and fair
competition, the core principles of operator licensing.
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