Animal ban 'will cost jobs'

Cattle hauliers are preparing for the worst

Livestock carriers and hauliers are the latest victims of the foot-and-mouth outbreak with predicted losses across the industry of up to £5m.

Their livelihoods have been effectively frozen with the government's seven-day ban on the transport of live animals throughout the country.

Firms are already saying redundancies are inevitable if the ban continues beyond a week, and some fear they may go out of business.

Gilder and Sons, which employs 30 people at its base near Cheltenham, would normally expect to make about £40,000-a-week from meat and livestock movements within the UK and abroad.

But Shaun Gilder said: "We can see ourselves holding out for two or three weeks, but any longer than that and we would have to take drastic action.

"We would see ourselves having to make redundancies."

A whole week's loss of business will have a serious impact on their cash flow and many companies will be reviewing their future...

David Russell, Freight Transport Association

The movement of livestock and fresh meat constitutes 75% of the firm's business.

The company is now "scratching around" for extra work, while the drivers, whose salaries still have to be paid, are sitting around the yard doing odd jobs.

David Russell from the Freight Transport Association (FTA) said: "These companies operate on very small margins.

"A whole week's loss of business will have a serious impact on their cash flow and many companies will be reviewing their future on the basis of this."

While most hauliers are generally supportive of the ban on animal movements, their over-riding concern is how long the quarantine period will last.

Compensation

Most said they could not take out insurance to guard against an event like this and would be looking at compensation.

But according to the FTA, this is a long-term issue.

David Russell said: "The process for seeking compensation is something we would look to in the future.

"It would need to be pursued, maybe with Maff, or the Treasury or the Department of Environment and Transport and the Regions (DETR)."

The FTA's advice to any hauliers who may consider seeking compensation is to keep any receipts or documents proving loss of contracts.

The owner of another firm, who wished to remain anonymous, compared the current crisis to the foot-and-mouth outbreak of 1967, which severely affected the business, then run by his father.

He said: "If it goes on beyond a week it will have serious implications for us. Redundancies are a strong possibility."