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Mike Ham, business development manager for Massey Wilcox Transport, explains
Page 46
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how he has jumped through hoops to apply for a rail-freight grant, only to hoar in the last few weeks that the government is withdrawing such funds...
• To sound off about a road transport issue write to Patric Cunnane (patric.cunnane rbi.co.ult) or fax your views (up to 600 words) to Nicky Clarke on 020 8652 8912.
dd We have spent the last three years planning a major
new venture, the development of the Avonmouth Rail Funds offered by the government to assist in bringing about these huge environmental improvements became the prime motivator and Freight Facilities Grants helped turn the dream into reality.
When we embarked on this project we worked on the sums again and again. After all, the customer had a cost/tonne target and we had to demonstrate cost benefits or, at worst, break-even on existing distribution channels.
Financial projections and cash flow forecasts had to be detailed and were rigorously scrutinised by the Strategic Rail Authority. It became very clear early on that the only way forward was with the financial support of FFG. We fulfilled all the SRA's criteria and were given permission early in September last year to proceed, albeit at our risk, with the placing of orders for some essential capital items.
As soon as the first order was placed we became fully committed. Contracts with landlords exchanged, contractors hired, resources allocated. The SRA fully understood our position because we kept them properly informed, Risk was seen as minimal. After all the SRA was giving us all the assurances we needed and, in any event, this was published government policy.
Then, just one month ago when we were expecting official notification of a seven figure grant approval, the SRA advised us that all FFGs had been cancelled without notice.
Getting the grant is fundamental. Without it, the project isn't viable. It is inconceivable that we could have made so much progress to find financial support withdrawn at the eleventh hour.
What we want to know is: where has all the promised funding gone? Two weeks prior to the announcement all the funding was in place. What has happened in the meantime to make someone change their minds? Would it be at all possible for someone to communicate with us? I'm happy to go to Downing Street just to be kept in the picture.
So, where do we go from here? The policy makers in government need to be made aware of the position they've put us in and we need to change their decision. We will be embarking on a major
national publicity campaign and contacting every MP. We will continue to lobby the government through every possible channel to get a result in our favour. We remain optimistic that we will succeed. We cannot afford to fail.
We hope that none of this will be necessary and that the government will see sense and stand by its environmental improvement policies.