[2024] UKUT 225 (AAC)

The TC’s concerns arose as a result of evidence relating to the Appellant which came to light during a PI, held in Glasgow on 20 February 2023, to determine the application for an operator’s licence submitted by Mr Ian McNaught, the sole director of “PHR Grab Hire Ltd”. The proposed operating centre was Four Acres, Rannoch Road, Johnstone, the same operating centre as the Appellant. Media reports and an objection from Police Scotland, had alerted the TC to the fact that an organised crime group, involved in illegal firearms and Class A drugs, had been operating from or very near to that site. Amongst those convicted and imprisoned for related offending was Mr Eric Morrison Jnr, son of the Appellant. In addition, BBC footage from a documentary called “A Dirty Business”, suggested that the site was used for the carriage and concealment of unlicenced waste disposal. The footage showed the Appellant at the site, wearing clothing that displayed the wording/logo of “PHR Services”, as well as a sign at the site displaying the initials “PHR”. The Appellant was further connected to the application through bank statements showing payments being made to “Eric Morrison”, emails from PHR Services with the name of “Eric Morrison” on them, and the fact that the two vehicles specified on the licence application were registered to “Eric Morrison”. During the PI, it was discovered that the Appellant is the uncle of Mr McNaught, and was to carry out the maintenance on Mr McNaught’s vehicles, contrary to that stated on the application.

The TC dealing with the matter found Mr McNaught’s evidence to be so unreliable and implausible, that she was unable to trust that Mr McNaught would comply with the licencing regime. She rejected the commercial lease agreement between he and the Appellant, which was produced in evidence. She found that the business of PHR Grab Hire Ltd was most likely being operated by, and for the benefit of, the Appellant. This was due to the fact that PHR Grab Hire Ltd was incorporated just weeks after the damning BBC documentary was released, the contents of which clearly risked regulatory action being taken against the Appellant. The TC was also concerned about the suitability of the Rannoch Road site as an operating centre. She therefore refused Mr McNaught’s application for a licence for PHR Grab Hire Ltd.