A Newton Abbot coach company which continued to carry children to school despite admitting to a 'catalogue of maintenance disasters' has lost its licence.

A public inquiry heard that up to 85 per cent of vehicles operated by Town and Country Coaches Ltd, of Silverhills Road, Decoy Industrial Estate, had failed annual safety tests.

The company is entitled to apply for a new licence provided its owner is not involved 'in any way'.

The coaches carried pupils to and from Teign School, Kingsteignton, Coombeshead College and Knowles Hill School, Newton Abbot, Cuthbert Mayne and Churston Grammar schools in Torbay, and Bidwell Brook School, Totnes.

Since July 2000, the firm has been issued with 13 prohibition notices after defects were found in its 12 coaches.

A further inspection of five vehicles on August 9 last year found yet more unsatisfactory maintenance and poor record keeping.

Now the firm has had its licence revoked. Owner Norman Squires has been deemed 'unfit' to be involved in any form of commercial vehicle maintenance, a finding against which he has appealed.

The firm can apply for a new licence provided Mr Squires is not in involved 'in any way'.

Kim Bates, a new director and soon to be the new owner, said in a statement: 'The operator licence of Town and Country Limited is not revoked until May 31, 2006.

'Prior to that, the company, who have not lost their good repute, will therefore be applying for a new licence, which should be in place to allow the continued success of this company.

'The company takes the issue of safety extremely seriously, and unfortunately a number of prohibitions were issued, some caused by vandalism, and this is being investigated thoroughly, and all issues of safety are being addressed with a view to improving standards all the time.'

In a statement, Devon County Council commented: 'Town and Country Coaches Ltd went to a public inquiry at which the traffic commissioner ruled that there were a number of vehicle issues.

'After discussions between Devon County Council and Town and Country Coaches Ltd, and because of the decision taken by the traffic commissioner, we have mutually agreed to terminate all contracts carried out by Town and Country Coaches Ltd.'

Mr Squires had no comment to make at the time of going to press.