COVID CONSCIOUS COMPANIES... REALITY CHECK: HOW ARE OUR
TRANSPORT PROVIDERS COPING WITH COVID?
No doubt you will have seen our feature in this edition of PHTM highlighting the effects of the current lockdown on indi- vidual licensed drivers, and their reaction to the lockdown policy set out by their local authority.
This feature is about the effects of the lockdown on companies: how they’re coping, what measures they’ve put in place, and whether they believe their local authority is “playing ball”.
Amongst all those companies whose pro- prietors we’ve spoken to, there are several common denominators: for the most part, their volume of business is between 70 to 75 per cent down on nor- mal takings. A large number of their drivers are more than willing to ‘soldier on’, with a great many of them doing half- fare or free of charge journeys to NHS staff and key workers (see also our “Covid-19: Firms step up” feature in this edition).
And interestingly, a couple of them have highlighted the fact that whilst the local smaller grocery outlets are more than willing to utilise their services, it is far more difficult for these (mainly) private hire firms to come to food delivery arrangements with the major supermar- kets. Why? Red tape: too much administrative hassle on the part of the supermarkets, which have made it nigh on impossible to work with our guys.
What a nonsense! Surely it is more impor- tant that these huge outlets distribute their food supplies… we’ve heard of countless members of the public who cannot get a delivery slot with their local supermarket due to over-subscription.
This is the time when taxis and PHVs can step in and cover those deliveries – and the Association of British Insurers has said that hire and reward insurance should cover such work during the dura- tion of the lockdown at least. Let them get on with it!
Speaking of which, we’ll set off round the country to present mini-profiles of those companies whose spokesmen (and women) have been kind enough to respond to our Covid lockdown survey:-
BLACKPOOL
Our friends and long-standing NPHTA members Blacktax in Blackpool are always obliging. Director Graham Smith told PHTM: “Blacktax has been estab- lished for over 40 years. We are a limited company with 50 shareholders who all operate a vehicle on the company. We own our own office and have no out- standing finance agreements, and have cash reserves in the bank, so we’re one of the lucky ones.
“The sorts of measures we put in place to consolidate company expenditure during the lockdown include: All members of office agreed to a reduction in hours and restructuring when they work; some members of staff were furloughed. Adver- tising and marketing in the main has been put on hold; freephone lines where possi- ble and appropriate have been frozen.
50
Any unnecessary expenses have been stopped.
“Since lockdown, our job count for April will be in the region of 80 per cent down on 2019. The fleet size is currently 15 per cent down. Revenue from subscriptions for April will be around 70 per cent down on April 2019; shortfall of income over expenditure will be in the region of 40 per cent.
“We have reduced subscriptions by up to 60 per cent; shortfall in income over expenditure is being met from cash reserves and the £10,000 Government grant. As the lockdown is relaxed and demand for our services increases, sub- scriptions will be increased.
“We work very well with the licensing authority; they’re currently extending Cer- tificates of Compliance for those expiring up to the 31st May 2020 for three months. The status of licensed vehicles (MoT and CoC) will be’ reviewed regularly, with the possibility of extending the scheme to vehicles expiring in June and extending compliances further if required.’”
LEICESTER
Leicester City Council is pretty much falling into line with a large number of other licensing authorities: no new appli- cations, reduced office staff, testing station closed. They have waived vehicle
MAY 2020
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