Stock Transportation's bid for charter bus licence rejected by N.S. regulator

Stock Transportation expressed disappointment Thursday after Nova Scotia's regulatorrefused to grantthe multinational bus company a licence to resume charters in the province.

The company had applied to use 35 school buses for charters, known in the industry as activity buses, after it was banned from charter work several years ago for safety violations.

"Stock Transportation are very disappointed to learn of the decision,'' Darryl Amirault, a regional manager for Stock, told CBC News.

"We firmly believe that we have a lot to offer the Nova Scotia travelling community, and we were looking forward to a reintroduction into the market."

The company has kept its licence for school board bus routes.

Blanket charterbanlifted

Stock was not entirely unsuccessful, however, in its application to the Nova Scotia Utility and Review Board.

In the same ruling, the board lifted a blanketorder from 2017 that expressly prohibited Stock from charter work.

But in denying the charter licence application, the board agreed withStock competitors that there isn't enough activity bus business to go around if Stock gets back into the market.

Since Stock was booted out, 14 activity bus licences have been issued.

Seven companies filed objections to Stock's application, includingAbsolute Charters, Bluenose Transit, Coach Atlantic, Mac Tours, Markie Bus Tours, Minas Basin Transit, and Molega Tours. Five of the companies said utilization rates for charter buses ranged from six to 26 per cent.

"The board is not satisfied there is sufficient demand for this service or that it cannot be provided by existing motor carriers,"board member Richard Melanson wrote in the decision.

"The board finds the granting of the application would create an excess of equipment and be detrimental to the sustainability of the motor carrier industry as a whole."

Supporting letter dismissed

Stock had submitted a form letter in support of its bid from 17 Halifax-area school principals saying there was a need for a fleet of school activity buses providing lower-cost charters.

Melanson did not accept the claim, saying there was evidence that activity buses are available and being used by schools.

"The board is not convinced this market exists," Melanson wrote.

Banned after damning report

Stock was previously banned from charter work after a scathing report in 2017 revealed thecompany had been operating without a charter licence, mistreating drivers and covering up shady practices.

The company forced drivers to stay on the road longer than allowed and fired two of them for refusing.

In one incident, Stock loaded Scouts on a jamboree trip onto a school bus without securing propane tanks and blocking exits with equipment.

The utility and review board member presiding over a 2018 hearing into the company's conduct called it a serious issue, noting that "in addition to being missiles, a propane tank is a bomb."

Ban cost Stock $1.5Ma year

The charter prohibition has cost the company $1.5 million a year.

Stock blamed a manager Troy Phinneywho left the company for a competitor before the violations came to light.

"Stock has shown a willingness to work with the board to address concerns related to corporate culture and oversight," Melanson wrote in the decision.