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Council steps in after bus companies close.


Byline: Jackie Bow

A COUNCIL has taken urgent measures to ensure school bus services keep running after two operators went into voluntary liquidation Voluntary liquidation

Liquidation proceedings that are supported by a company's shareholders.
.

Caerphilly County Borough Council Caerphilly County Borough Council (Welsh: Cyngor Bwrdeistref Sirol Caerffili) is the governing body for Caerphilly (county borough), one of the Principal Areas of Wales.  was notified by Bedwas-based Independent Community Transport, trading as CATS and TopKats Travel, that they were due to go into voluntary liquidation at a minute to midnight yesterday. Arrangements have been made for their council contracts, involving providing specialist buses for social services social services
Noun, pl

welfare services provided by local authorities or a state agency for people with particular social needs

social services nplservicios mpl sociales 
 clients and pupils of Trinity Fields School, Ystrad Mynach Ystrad Mynach is a town in the county borough of Caerphilly, traditional county of Glamorgan, south Wales, 5 miles north of Caerphilly town. It has a population of around 10,000 and stands in the Rhymney Valley. , as well as general school runs, to be covered by operators on the authority's approved list Approved list

A list of equities and other investments that a financial institution or mutual fund is allowed to invest in. See: Legal list.


approved list

See legal list.
.

Letters were being sent out yesterday to schools affected, informing them of the change.

In a statement, a council spokesman said: "We understand, following correspondence from the chief executive of CATS and TopKats Travel received last Thursday, the idea was to close these two companies via voluntary liquidation and open a brand new bus company under a different name with different directors.

"They thought they could use the same vehicles and continue with the contracts of CATS and Topkats Travel.

"This, of course, would be illegal," said the statement.

It explained: "Strict EU procurement laws mean we cannot automatically give these contracts to the new company.

"All the approved bus contractors that provide services for the council must be part of a framework agreement in line with procurement legislation.

"Any firms that are not within this agreement are not eligible to apply for the contracts."

As a new company they would not be within the agreement.

More than 90 companies had met strict criteria to provide transport across the borough.

"Some of these contracts involve social services clients and children with special needs, so our main priority is to ensure that alternative provision is in place and disruption is kept to a minimum," said the spokesman.

"Service users will appreciate that we have a duty to protect their interests and we also need to act fairly and equitably towards all other local bus operators that form part of the existing agreement."

Jason Dury, marketing manager for Cats, confirmed the voluntary liquidation.

"We are setting up as another business, from tomorrow onwards," he said.

He said he was unable to comment further and referred us to chairman Dr Alan Morgan, who was unavailable yesterday.
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Publication:South Wales Echo (Cardiff, Wales)
Date:Sep 23, 2009
Words:378
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