A MINIBUS operator is threatening to sue a council which he says failed to tell him he needed an operator's licence.

Bruce Hyde set up MSG Taxis, in Middleton-St-George, near Darlington, two weeks ago, but was ordered by the Vehicle Inspectorate to stop operating last Thursday.

He says he approached Darlington Borough Council last month for advice on setting up a taxi business.

"The council told me I needed to apply for plates for the three cars I had bought but while that was being processed I could operate a minibus without a plate from them" he said.

"What they didn't tell me was that I needed an operator's licence from the Vehicle Inspectorate."

Mr Hyde bought a 12-seater minibus and hired another vehicle and began taking about 200 customers a day, unaware that with no licence his insurance was invalid.

"I have had instances of 12 old age pensioners on the bus and the insurance has been void. It is awful to think what could have happened," he said.

"If I had known I had to have this licence I would have got it. The council knew I was new to the business. I went to them for advice and they failed to give it."

Mr Hyde says he had built up a big customer base but fears he could be bankrupted.

"I went out and spent £10,000 on a bus and employed two bus drivers. I was quite happily going along, not knowing anything was wrong."

Mr Hyde met his solicitors yesterday to discuss suing the council for negligence.

A council spokesman said: "It is not our job to give him advice outside our area. We give advice on the issues around licensing for Hackney carriages and private hire vehicles."

A Vehicle Inspectorate spokeswoman said it was advised Mr Hyde was operating minibuses without a licence.

"We went in and gave him some advice on applying for an operator's licence," she said.