THREE police officers who were fined by the Chief Constable for running a taxi business have been cleared of disciplinary charges after appealing to the Home Office.

The £500 fines have been returned to the officers with interest after they successfully argued to a tribunal that Chief Constable Pauline Clare should have not heard their disciplinary hearing because she was involved in the case.

A fourth officer who received a caution is also now planning an appeal.

All four were transferred from Burnley by Chief Constable Pauline Clare in 1999 and faced disciplinary action in March 2000, but continued police duties. One has since retired.

A fifth officer who was involved in the initial inquiries left the force before the hearing took place. The five officers included four detectives and a uniformed officer. Three are still employed by the force.

A spokesperson for Lancashire Constabulary today confirmed that the three officers had argued that as the Chief Constable would have been the person to approve a business interest she should not have been the person to hear the allegation against them.

She added: "It was a legal point. I cannot make any further comment as we regard this as an internal matter."

All were accused of operating a taxi business providing transport to Manchester airport without permission.

When they were taken before the Chief Constable they denied they had done anything wrong, claiming they had been given permission by an administration officer at Burnley police station.

That was disputed and they were found guilty of the disciplinary charges.

Three of the officers, risking high legal costs if they lost, took their case to an independent tribunal set up through the Home Office and headed by a former chief constable of Merseyside.

One of them said: "Basically they found that the Chief Constable of Lancashire should not have heard the case herself as she was technically a witness.

"She was acting like judge and jury."

When the matter first came to light there were rumours that the taxi business was being run from a CID office and that squad cars were being used.

The officer said: "That was all just nonsense. We were using lease cars and in our own time."

The investigation was started by the Lancashire Constabulary discipline and complaints unit at Hutton headquarters after it was referred to them by the then divisional commander Chief Supt Mike Griffin.

The four officers were all moved from Burnley to other parts of the force in December, 1999.

Tomorrow the Lancashire Police Authority personnel committee will discuss a revised procedure for hearing appeals against the Chief Constable's decisions to refuse an application for a business interest.

The committee is being asked to agree the new procedure in time for it to be used in relation to a pending appeal unrelated to the Burnley taxis issue.