'Systemic failure' at Cootes, court told

A magistrate says she is "horrified" the trucking company involved in a fatal tanker crash in Sydney's north was not required to undergo annual heavy-vehicle inspections.

Two people were killed and five were injured when a Cootes Transport tanker rolled on its side, burst into flames and collided with several cars on Mona Vale Road, Mona Vale, in October 2013.

The national trucking company came under scrutiny after the accident and was charged with more than 300 offences.

NSW Roads and Maritime Services (RMS) alleged it had discovered significant defects in the company's fleet, including faulty brakes and suspension.

Cootes has pleaded guilty to 255 charges, some of which carry maximum penalties of $11,000.

During a hearing on Wednesday, Magistrate Lee Gilmour said she was "horrified" the Victoria-based company was not required to undergo an independent annual inspection.

"Ordinary motor vehicles you and I drive have to be inspected annual(ly) ... trucks as these don't have to do that?" she said.

"It seems rather silly to me but then you and I are stuck with the legislation."

Brett Hearnden, representing the RMS, said a "significant proportion" of Cootes's fleet had been identified as travelling with breaches.

"The only conclusion one could reasonably draw from the number of defects identified is that there had been a systemic failure in operations and conduct," he said.

At present, if a heavy vehicle is registered in NSW, it has to undergo mandatory annual inspections.

However, Victoria operates a different scheme, which means heavy vehicles do not undergo mandatory inspections until they change ownership.

Ms Gilmour will sentence Cootes at a later date.