« Today in Road Transport, 12th May 2009 | Main | Today in Road Transport, 14th May 2009 »

Tinnelly: a reader writes

I received the following e-mail this morning from someone called David Burns:

"Dear Dom, getting very bored of your continued coverage of tinnelly's administration. At these hard economical times do you not think your questionable journalistic skills would be better served covering job losses,fuel prices etc.. The man is still saving jobs.  Disgruntled reader."

Ignoring for a minute the charming nature of the missive (unsigned, natch) it clearly raises a question: should I be using my "questionable" journalistic skills to better effect?

Mr Burns raises the point that all Kevin Tinnelly has tried to do is save jobs. On its own this could be seen as commendable - although to do so Tinnelly performed the magical debt-erasing act that is pre-pack administration, leaving a long trail of creditors. You might also question how many jobs have been saved: according to its administrator 20 of 60 employees were made redundant by the new business. That's a third of the workforce. Its total deficiency is in the region of £4.5m - with trade creditors owed a probable £2.1m. So by my reckoning each trade creditor has effectively chipped in £52,500 for each employee saved. That was nice of them wasn't it? (Edit - questionable maths skills on display: what I meant to say is that it has cost creditors a total of £52,500 for each employee saved).

Perhaps more significantly - and the reason why we have been so active in our coverage of this story - are the heap of unanswered questions and the faint whiff of something untoward. For those who haven't been following the story, here's a selection of the things we've discovered:

- Tinnelly International ran trucks on the UK mainland without an O-licence

- It instructed a company currently under investigation by the Serious Fraud Office for asset stripping to help buy another business.

- The deal that saw it buy Barnes & Tipping piled debts onto that business but left it with no assets.

- Tinnelly Transport now has two sites on the mainland - in Preston and Stoke. It has no O-licences for these (although it says as they are not operating centres it doesn't need them).

- Tinnelly International was prosecuted three times in a year for overloading offences.

And that's just a selection. Although rising costs are a massive issue in the industry, another endemic problem is the ability of some operators to undercut their rivals through questionable practices. This pushes rates down and means that other hauliers are unable to compete.

That's why Motor Transport has been so active in its pursuit of this story. Kevin Tinnelly may have saved 40 jobs, but at what cost?  

 

TrackBack

TrackBack URL for this entry:
http://www.roadtransport.com/cgi-bin/mt/mt-tb.cgi/53000

Comments (1)

George:

I am glad that the questionable journalistic skills recently employed by the Daily Telegraph refused to be cowed by bullying MPs.

Keep up the good work!

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)

About

This page contains a single entry from the blog posted on May 14, 2009 9:51 AM.

The previous post in this blog was Today in Road Transport, 12th May 2009.

The next post in this blog is Today in Road Transport, 14th May 2009.

Many more can be found on the main index page or by looking through the archives.