Frank Mackay Appeal Rejected
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THE Transport. Tribunal rejected the appeal of Frank Mackay Ltd. at Edinburgh on Tuesday, upholding the Scottish Licensing Authority's decision at the Original hearing. Mr. G. D. Squibb, president of the Tribunal, said that Mackay operated four Contract A vehicles for Fetter Cairn Potato Co. Ltd. They now sought to surrender this contract and obtain in its place a public A licence with normal user: "Agricultural produce and requirements to the extent of 65 per cent for Fetter Cairn Potato Co. Ltd, in the whole of Great Britain, and 35 per cent for other customers in Kincardineshire and Angus to and from the Midlands of England."
The applicant company and its customer had a common managing director in the person of Mr. Frank Mackay, who had a controlling interest in each company. Both had the same directors and owners, but the companies were entirely separate and Mr. Mackay had explained in evidence how he had come to form the companies at the suggestion of accountants who proposed splitting the two businesses for internal purposes. The applicant had been supported by customer evidence from the Fetter Cairn company and by farmers.
The LA had rejected this application, relying inter alio on the Merchandise Transport appeal and stating that the case was distinguished from Merchandise in that they were not parent and subsidiary companies, but entirely separate.
Mr. Squibb continued: "It appears to us that the basis of this Merchandise Transport decision is that the LA and the Transport Tribunal ought to look behind this façade to see what is the substance of the matter. If this is done, it appears that the substance is that Mr. Mackay, acting through his two companies, is seeking to obtain an A licence which he would not obtain if not acting through these companies. If Frank Mackay Ltd. is to obtain a road haulage licence it should not be an A, but a B."