No compensation for lost A5 trade

The road was closed in May following safety fears

The Welsh Assembly Government has said it will not compensate businesses who lost summer trade while the A5 road was closed for emergency repairs.

Andrew Davies, economic development and transport minister, broke the news in a letter to the Federation of Small Businesses (FSB).

He said there was "no statutory provision to enable us to compensate businesses" in the circumstances.

Officials at the FSB said they were "disappointed" with the decision.

The A5, one of the main roads across north Wales, was closed between Dinmael, Conwy, and Ty Nant, Denbighshire, in May because of an unstable rock face.

Initially, drivers faced a 32km (20 miles) diversion through Bala, and many traders along the A5 reported a significant drop in business due to the closure.

In June, a stretch of the old A5 road was re-opened to ease the problem, but some businesses say they have still been adversely affected.

Work to steady the rocks is expected to take at least until the end of 2006.

'Moral case'

FSB North Wales chairman Gwyn Evans wrote to Mr Davies two months ago, asking for compensation to be awarded to businesses who claimed they had lost money.

He said: "People knew about the dangers of this rock face for months and months before the road was closed.

"The assembly had plenty of time to work out a plan that actually helped local businesses."

He added: "I am disappointed Mr Davies seems to be hiding behind the phrase 'no statutory provision,' when there seems to be a clear moral case for compensation to the businesses involved."

In his letter, Mr Davies wrote: "The assembly government has a statutory duty to maintain trunk roads and to have regard to the safety of road users.

"There is no statutory provision to enable us to compensate businesses for loss of trade in these circumstances.

"We will, however, assist in minimising the adverse affects on business, such as the provision of local signing, and consider other forms of aid to the businesses most affected, once all impacts have been quantified."