Coronavirus: Coach operators' warning over future of firms

Coach operators in NI have warned many firms could go out of business before the industry recovers from the Covid-19 crisis.

MLAs have been told that 70% of operators have lost their income during the past year.

Details emerged at Stormont's infrastructure scrutiny committee.

On Tuesday, Infrastructure Minister Nichola Mallon asked the executive to approve a new scheme to help coach and bus operators.

Under the previous scheme, operators who were able to show a 40% reduction in their income could benefit from payments capped at £100,000 per company.

It included payments of £8,000 for the first coach and £4,450 for each of the other vehicles in the fleet.

Redundancies

Karen McGill, from Bus and Coach Northern Ireland, said even with extra payments, 65% of its members had to apply for loans and were repaying up to £7,000 per month

"I had one lady crying on the phone to me at the weekend who received just £2,500 despite losing 77% of her income," she said.

She said 30 workers have been made redundant and there is a concern that many firms will not survive long enough to see the industry recover next year.

Edwin Henry, from Coach Operators Northern Ireland, told the committee he had purchased two new vehicles before the pandemic and they have "yet to turn a wheel" but are costing him £6,000 a month in repayments.

He urged the committee to help put the next scheme in place as soon as possible and to fully consult with the operators about the criteria.

Infrastructure Minister Nichola Mallon said she is committed to continuing to work with the sector

In a statement, Ms Mallon said she plans to engage with the industry about the new scheme.

A spokesperson said the minister had "sought new powers from the first and deputy first ministers to bring forward a further financial support package for the private bus and coach industry to provide financial assistance due to Covid-19".

"The scheme will be up to an additional £4m if powers are granted and will provide additional support to those eligible," the statement added.

"The minister is committed to continuing to work with the sector on the details of the second scheme.

"As many businesses continue to suffer due to Covid-19, Minister Mallon is pleased she has been able to step up and step in to help those in need who have been excluded from the support provided by other ministers.

"It's disappointing that while the private coach and bus industry is reliant on the tourism sector and hospitality and plays a key role in our local economy, that they haven't received any support from the responsible department, the Department for the Economy."