Frustration after Transport Select Committee hearing

Operators react with disappointment after a Transport Select Committee hearing on 24 March again pushed away hopes for support

Coach operators have reacted with despair and frustration after the Transport Select Committee Hearing on 24 March, which yet again pushed away hopes for a UK-wide sector-specific support package.

The reaction to the evidence by Under-Secretary of State for Transport Baroness Vere and Under-Secretary of State for Sport, Heritage and Tourism Nigel Huddleston MP did not come as a surprise to Paul Lynn, Director of J&B Travel, who says that he had never expected the ministers to offer sector-specific funding – he was, however, frustrated by the “lack of compassion” demonstrated by the Baroness, and her apparent disregard for the reputation of longstanding operators which, in the minister’s words, would be replaced easily should they fail: “If somebody wanted to come back into the area, because they were able to and had some financing, and regroup those assets with the human resources, they could create a new coach company.”

In his response, Mr Lynn says “her rather flippant remarks proved a point to me that she has no respect or care for what these family-run businesses in this sector do, and the hard work that they put in.” In particular he remarks on her dismissal of the Confederation of Passenger Transport’s ‘coach deserts’ concern. “Not many family-run businesses or families can purchase the sort of vehicles that we have in that respect,” he adds. “It proved a point that she is not interested in family-run business or in the families that have worked so hard over the years to invest heavily in new vehicles, Euro VI compliance and companies like us which have full PSVAR compliant vehicles. According to the minister, if we do not have a strong enough balance sheet and we disappear, we are just a hole in the market to be filled. But there aren’t many who can afford that investment.”

Following correspondence with the minister Mr Lynn reveals letters from the Department for Transport in September 2020 to the effect that sector-specific support would not be forthcoming may have been a contributing factor to a loss of some of the hope that had been building. “Conversations with other operators now reveal more closures are imminent, which frustrates me even more – because Honk for Hope united the industry as one, and now we have returned to looking after ourselves,” he says.

Simon Hayes of Forest Coaches shares those concerns that the government views individual coach operators as replaceable, with no apparent concern about the long-lasting effects it may have on individual communities. “The government seems to be of the opinion that if we go out of business then someone will be straight behind us to open up, so if any coach companies go bust new entrants will replace them,” he says. “I feel very sorry for some of the companies which are third or fourth generation which have built up strong links to their community and have a longstanding history.

“It’s a terrible tragedy that the government will allow these companies to fail. Given time, there will be new entrants into the market – but it’s incredibly wasteful to allow such longstanding companies to fail just to be replaced by companies which potentially won’t have the same experience and trust. Companies should be helped to survive, not be allowed to fail in the expectation they will be replaced by new entrants.”

Candice Mason of Masons Minibus and Coach Hire, who presented evidence to the committee, says she was comforted at least by engagement by Mr Huddleston. “I’ve met with Mr Huddleston twice before and I thought he was much more empathetic to what is going on – but I still don’t think he’s doing enough,” she says. “On the ground things aren’t improving and we are still faced with regular challenges. We don’t need ministers’ empathy – we need them to take action.”

In particular, Mrs Mason stresses it is no longer acceptable for the government to rely on the ‘non-essential travel’ excuse to limit sector funding. “Eat out to help out was not essential, theatres and sporting events are not essential, and Glastonbury which received funding is not essential. Baroness Vere cannot keep using that as her excuse.”

The ministers’ reliance on the Additional Restrictions Grant (ARG) has been met with negativity by all three operators. Both Mr Lynn and Mrs Mason say that exclusion from the Restart Grant despite prior reassurances from some MPs has been “incredibly disappointing” and the paltry sum offered through ARG, amounting only to several thousand pounds, will make no significant contribution towards CBILS repayments, ongoing vehicle costs and yard fees being incurred. “I’m incredibly grateful for ARG which we recently received,” says Mrs Mason. “But £3,000 does not even touch the sides – and I think operators are feeling angry. We are not expecting 100% of our revenue, as the Baroness suggested – we simply need propping up as other businesses have been.”

Meanwhile Mr Hayes says conversations with other coach operator applicants suggest awards from the discretionary grant are simply a case of “pot luck”.

The focus now that sector-specific support is further away than ever before is for each company to survive until June and depend on clarity when it comes to physical distancing rules.

Mr Lynn suggests that, should CBSSG continue to support the bus industry through physical distancing measures, coach operators might be safe to assume that, unless an announcement on the closing date of CBSSG is made, physical distancing will still limit a return to normal loadings.