Resolution nearing in dispute between Brisbane’s Tow.com.au and subcontractors

IN what would be welcome news for dozens of people owed about $500,000 from Tow.com.au, we could be about to see a resolution of its long-running dispute with subcontractors.

Tow.com.au founder Dominic Holland. Picture: AAP Image/Claudia Baxter.

TOW NEEDS LIFT

ARE we about to see a resolution of the long-running dispute between Brisbane’s Tow.com.au and plenty of its subcontractors around the country?

If so, that will be good news for dozens of towies who are owed about $500,000 from the
award-winning company launched by startup entrepreneur Dominic Holland just four years ago.

Holland, who has copped flack for the late payments from 2GB’s Ray Hadley in the last few days, blames his protracted legal fight with the State Government for putting a huge squeeze on his cash flow.

Some towies say they have been waiting up to five months to get their money and have retained debt collectors to force the issue.

Others have simply stopped working for Tow and warned that, as a result, motorists may be stranded in remote areas.

Holland doesn’t dispute that he’s been slow to pay many of his subbies, calling the situation “incredibly unfortunate’’. “They are well within their right to feel the way they do and want to get paid their money,’’ he told City Beat yesterday.

Illustration of Dominic Holland by Brett Lethbridge.

But a potential circuit-breaker is at hand.

The financial drama has grown so serious that Holland has started exploratory talks to sell more than $30 million of the debts owed to his firm.

While that drastic move would immediately solve his bottom-line issues, Holland fears the new debt-collecting owners would then start aggressively pursuing about 12,000 Queenslanders for the money.

“We don’t want to throw 12,000 Queenslanders under the bus,’’ he said, noting that all their personal information would be made available as part of any deal.

Tow sued the Government last October seeking $15.4 million allegedly owing from a contract to supply towing and vehicle storage services.

That deal was struck after the previous LNP administration brought in tough anti-hooning legislation in 2013.

In its defence, the Government maintains that the contract did not entitle Tow to charge for the storage cost of forfeited cars.

But Holland notes that more than 6000 Queenslanders have an average debt of more than $2500 per impounded vehicle. In some cases, it’s more than $10,000.

Holland pointed this out in an open letter to Premier Annastacia Palaszczuk, offering to sit down with her to resolve the matter shortly after he went to court.

“Your government’s position is that the owner of the vehicle, who in many cases was not the driver and was not guilty of an offence, is responsible for the fees,’’ Holland wrote.

“It is gut wrenchingly and immorally wrong.’’

HEAVY HITTERS

EVEN as a cloud of uncertainty continues to hang over Adani’s proposed Carmichael mega-mine, the Indian colossus has brought in some heavy hitters in a sign of how badly they want it to happen.

Industry veteran Lucas Dow is now heading up Adani’s Australian mining operations following his stint as chief executive of the BHP Billiton Mitsubishi Alliance. Joining him to run government and corporate affairs is Paul Fennelly, a former co-ordinator
general and DG of State Development.

Fennelly is also comfortable in the resources space, having previously served as head of the Australian Petroleum Production & Exploration Association.

BAILING ON RAIL

SPEAKING of resources, Aurizon has seen a couple of high-profile departures recently.

After more than 30 years in the train game, network operations and assets boss Scott Riedel has called it a day.

Peter Cowan, VP of operations in central Queensland, is also out the door.

An Aurizon spin doctor assured us that the moves have nothing to do with the rail operator’s current dispute with the Queensland Competition Authority over its monopoly coal freight line.