‘There is zero chance of economic recovery without hauliers’

April 15, 2020

TIGHT MARGINS: “These measures the Government have come up with simply don’t work. An average haulier will make a two per cent margin and two to three weeks of cashflow within their business. We have hauliers who can’t even furlough staff and pay them because they have the insufficient staff to pay those employees.” – Chief executive of the Road Haulage Association Richard Burnett.

ESSENTIAL SERVICE: “Without all those trucks and truckers, there is no UK economy, or at best a very strangulated form of one. The country needs to have the ability to turn that utility back on with the flick of a switch. Currently we are heading for a road haulage black out.” – You Tuber and political commentator Jeff Taylor.

 

 

 

FAILURE to support the haulage sector when the Coronavirus lockdown subsides could have huge knock-on consequences for the UK economy.

Richard Burnett, chief executive of the Road Haulage Association, says the loan system set up by the Chancellor of the Exchequer, Rushi Sunak, and his colleagues must work for his members as many hauliers are small, family firms he revealed in a short interview with BBC Radio 4.

Currently up to 240,000 Heavy Goods vehicles are parked up doing nothing alongside all the planes sitting idle at airports, like those on the Ryan Air and British Airways jets lined up at Bournemouth Airport. Small businesses 85 per cent of the transport market.

“These SME (small and medium-sized entreprises) are really struggling. These measures the Government have come up with simply don’t work. An average haulier will make a two per cent margin and two to three weeks of cashflow within their business.

We have hauliers who can’t even furlough staff and pay them because they have the insufficient staff to pay those employees.

Mr Burnett acknowledged the Government realised how crucial the haulage sector was to the UK economy but they weren’t awake to the small profit margins involved.

‘Loan can’t be serviced without money coming in’

He said: “We are as an industry and we are keeping the nation fed at the moment but it is so marginal, that that two per cent margin, and the lack of debtors at the moment is creating a big cashflow problem so you can’t service a loan if you haven’t got any money coming in.

“We need cash, grants to balance and normalize this cash flow problem and the loan system simply doesn’t work at this moment in time.”

This issue was brought to my attention by You Tuber and political commentator Jeff Taylor on his channel and he makes these forthright observations that MPs and the wider public would be wise to heed.

“Can you imagine not being able to stop for a loo break, or a shower or to relax over a hot meal, because all of the services have been shut down? Now if these hauliers do start going under, then it means many more trucks and drivers being taken out of circulation – some of those trucks and drivers to deliver on right now to keep the food shelves stacked and PPE (personal protection equipment) flowing to the hospitals.

‘Will they be around when lock down ends?’

“When we do come out of the lockdown and the ships start arriving, the aircraft start landing and the shops, restaurants and pubs open up again, who is going to be moving all of that stuff and in what – certainly not bankrupted drivers with worthless lorries that no one wants to buy in case there is a second lockdown, that’s for sure.

Haulage industry is in effect a utility like electricity

“The haulage industry is part of our national infrastructure and in effect is a utility. It uses our road network in the same way electricity uses power lines to get to our houses or water uses pipes to get our taps, or possibly more accurately like blood uses our arteries to transport oxygen and nutrients to various parts of our body. And we all know what happens when the blood doesn’t flow properly, or even stops, don’t we?

‘Without hauliers, there is no economy’

“Without all those trucks and truckers, there is no UK economy, or at best a very strangulated form of one. The country needs to have the ability to turn that utility back on with the flick of a switch.

“Currently we are heading for a road haulage black out. The Government has overlooked this essential item.

‘Supermarkets and PPE suppliers are not bulk of haulage’

“In short the Government has not just abandoned hauliers and self-employed lorry drivers, but in doing so has risked the entire infrastructure of the UK.

“This depends on goods and raw materials being delivered to businesses across the UK, including supermarkets and front-line medical services, that although they may be being prioritized at the moment, they are NOT the mainstay of the British economy.

“Without a haulage sector running like clockwork, there is zero chance of any recovery and without a road haulage system, Mr Sunak, your precious banks will find themselves in a whole lot of trouble as will the whole system.”

{ 1 comment… read it below or add one }

Chesire Forever April 16, 2020 at 5:01 pm

Do you think you, or Mr Burnett know something that MP’s don’t?

Destruction of the small, medium and many of the large players in the trucking industry and the whole economy is exactly as intended. “Large” means major firms smaller than transnational. Amazon have their own operation.

You seem to think that MPs, system politicians, serve the people. It is this ignorance that has allowed TPTB to do what they are now doing.

Every business bankruptcy benefits the larger megacorps and bankers, who take possession of the real assets they demanded as security for the loans they created from thin air.

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