FSDF calls for vision with spending cuts
June 1st 2010 The Food Storage and Distribution Federation has called for the Government to show far-sighted vision when making spending cuts affecting the transport industry, warning that rash cuts now could have adverse long term consequences.
Chief executive Chris Sturman (pictured) encouraged Transport Secretary Philip Hammond to look carefully at the fundamentals of the sector.
“Getting the best bang for buck is a key issue. There has been a significant change of approach over the last three or four years where industry has been heard in terms of improving existing infrastructure as well as building new, but we still lag behind on new.”
Sturman also warned against cutting training saying provision in the industry has already slumped significantly.
“Organisations such as Skills for Logistics could be threatened, which would be very shortsighted because we have got to train and develop people and provide career opportunities.”
The Department for Transport is required to cut £683 million from this year’s departmental budget. The details of these cuts are expected to become clear on June 22 with the unveiling of the coalition’s emergency budget.
Hammond has already earmarked savings by ordering a review of plans to procure new trains, which could go a long way towards meeting immediate spending cut targets.
There is also believed to be a limited amount the Government can do to cut spending on climate change mitigation given the scale of EU and national Government commitment to hitting targets. Last month, the EU proposed to increase its target for cutting carbon emissions to 30 per cent on 1990 levels by 2020 (up from 20%).
“I don’t think the Government can afford to drop or cut back initiatives such as Climate Change Agreements (CCA) if we are to meet the ambitious targets.
It would give the wrong signals to the rest of the world and to industry.” The FSDF currently has an answer paper with the Department for Energy and Climate Change regarding an extension of the CCA, which it runs for the sector. Sturman added cuts had already impacted industry’s ability to cut carbon.
“The zero percent interest loan scheme, which came in last year providing £500,000 per application is now down to £100,000. This was directed at SMEs, which is the area where most needs to be done and there is the most opportunity for impact. The reduction has taken reengineering of cold store projects off the board for many companies.”
Sturman has also called for Government support in defeating proposed amendments to EU food regulations requiring stricter traceability for member states. The proposals were made in response to food fraud cases in which suppliers were selling meat with misleading labels.
The FSDF claims the regulations would put a disproportionate burden of responsibility upon its members and says it will cost them an extra £5m per year.
The British Retail Consortium has warned the bill could amount to as much as £294m for its members.
“We have a perfectly good system in place,” added Sturman. “We seem to be the only country identifying likely additional costs to industry in terms of warehouse management systems to accommodate the additional data and extra man hours required.” More articles from Handling & Storage Solutions: | 
