Northland's largest logging truck company has been given the go-ahead to continue operating, the latest step in a dispute over whether it was breaking the rules.
Covertly-recorded video has also been released by the courts showing the owner, former mayor of Whangarei Stan Semenoff, purportedly telling a Filipino driver to ignore the police and change rest breaks or lose his job.
Mr Semenoff strongly disputes that is what is going on, saying he was trying to explain company rules.
In March, Stan Semenoff Logging was told by the New Zealand Transport Agency that its transport service licence was being revoked over alleged safety breaches including 150 log book infringements and 116 traffic offences.
The company is one of a group owned by Mr Semenoff, with its fleet carrying an estimated half of Northland's log haulage.
The agency argued the company failed to address their safety concerns over the course of two audits and three years.
In its decision to revoke it said SSL's two directors, Mr Semenoff and his son Alexander Semenoff, together with the general manager Daron Turner were not fit and proper people to control the service as they were "unwilling or unable to comply".
However SSL is disputing the decision, particularly its conclusions about management, and was allowed to continue operating in March after an interim court order halted the revocation pending appeal.
Following a High Court hearing on Monday, Justice Whata has continued the order allowing them to operate ahead of a Judicial review.
He said there was sufficient evidence of systemic failures when complying with road regulations and while some of the agency's findings were disputed by SSL the evidence pointed to problems.
"NZTA's concern at the performance of SSL in the years 2016 and 2017 are justified."
However, he also found SSL had an arguable case that NZTA erred in law in finding that the people in control of the company weren't "fit and proper persons".
He said evidence from the Agency's decision maker showed findings were "in part inconclusive" and it would be up to the substantial hearings whether the Agency had got it right.
In a statement after the Judge's decision was released today, SSL said it was pleased with the Court decision and said it had acted at all times in accordance with transport laws and NZTA's decision was wrong.
Part of SSL and NZTA's disagreement stems from what constitutes a rest break with SSL arguing drivers can take their rest breaks during non-productive periods at source locations.
NZTA requires transport drivers to take at least 30 minute rest breaks every five-and-a-half hours of work, and considers time spent driving or performing work-related duties such as loading and unloading as work.
During Monday's hearing NZTA's lawyer, Paul Wicks QC, played a secret recording of Stan Semenoff which he argued demonstrated "pressure from management to prioritise work hours" rather than regulatory requirements.
The video, taken by a driver working for Stan Semenoff Transport in November 2016, was part of the evidence presented to the court by NZTA. SSL objected to the media being given access to the video but Justice Whata said the public is entitled to full transparency on a matter that concerns their safety and granted media access.
In the video, which Justice Whata said was not helpful in resolving the issues he had to decide, Stan Semenoff can be seen talking to the driver, Nico Gonzales, and telling him not to take his breaks on the side of the road, but instead while his truck was being loaded at the ports and skids.
"When you're getting loaded that's when you want to put your break in, try and work through your lunch.
He said the company wouldn't survive if they didn't.
"I know the logbook says you've got to do 5 hours in 14 but you know you'll never get through your work, we can't afford to keep you.
He said when things got busy, drivers would carry on working.
"I know the policeman says you've got to stop. **** him - he's not doing the company much.
At one point he said, "they can't catch you, they won't catch you, and that's the way these boys do it".
"If you don't understand and you don't want to do it, you tell me, that's okay, but I'm not going to put up with it because I'm not going to have...you're the only Filipino I'm having trouble with."
The driver appears to tell Mr Semenoff he's trying to follow the rules.
Driver: "Yes boss but I'm doing a legal for my logbook
Semenoff: Alright I won't argue with you anymore, I won't argue
Driver: You know....
Semenoff: Um - there probably won't be a job here for you
Driver: I'm doing...
Semenoff: Nah, nah, nah, I'm not listening to that - when you come and work for me, I told you out there, you work under my conditions and my rules right.
An affadavit released by the Court Mr Semenoff rejects claims he was making the driver break the law and NZTA's interpretation of what was said.
"The message I was trying to convey to Nico was that November, being one of the busiest months of the year, was not the time to 'drag the chain' and that it was important that everyone in the business works at their full potential during the busy times.
He said he had multiple complaints from staff that the driver had been "draging the chain" and "milking the hours".
"That week I would have already spent approximately 35 hours working and would have had to deal with many daily operational challenges. At over 70 years old, I find that I get tired towards the end of the working day and can sometimes say things which I later regret."
He said his comment about the police was "obviously an unfortunate expression for which I apologise" and said he had a very good working relationship with them.
"I cannot specifically remember saying this to Nico and it must have come out in the frustration and heat of the argument at the end of a long working day.
"I do not recall any particular policeman who might have spoken to Nico and I think this was a more general comment along the lines that he needed to listen to his bosses at the company, rather than what a policeman may have said to him."
He said a references to drivers putting their half hour breaks when on the port of on the skids was a reference to logging trucks taking their breaks in the forests and at customers' sites or the port "where they have suitable environment to stop and rest, rather than having to stop on the side of the road on SH1 where there are no toilet or any other adequate rest facilities".
"It has always been our contention with NZTA and CVST that it is best and safest to take breaks in Northland at the points of destination.
"Due to the relatively short distances which are travelled in Northland, drivers are stopping frequently after no more than 2.5 hours driving and often stop at the points of origin or destination for 45-60 minutes.
"It was also my understanding from other transport operatiors at the time and based on my discussions with the CVST unit, that the industry generally operated in that way (i.e. the drivers took their breaks at the points of destination).
"I was certainly not telling him not to have breaks or to break the law, as he suggests."
He said he raised with the NZTA and police numerous times the lack of safe places for trucks to stop in Northland.
This afternoon in a statement SSL said the video could be taken out of context and it would continue to challenge NZTA's findings.
