CPT continues coach funding pressure
A letter requesting urgent funding for the coach industry has been sent to the Treasury by the Confederation of Passenger Transport (CPT). It follows from a letter sent in July by CPT’s Head of Policy, Alison Edwards, requesting support.
Signed by CPT CEO, Graham Vidler, the letter proposes temporary relief for the sector’s financial obligations to help it cope with the pandemic. It requests that finance repayment holidays are extended until July 2021. It asks that personal guarantees are given in connection with finance agreements not to be enforceable by lenders due to non-payment under such agreements until July 2021. It also suggests that lenders are to be prevented from repossessing vehicles pursuant to non-payment under finance agreements until July 2021.
A spokesperson from CPT told Bus and Coach Buyer that formal responses from the government tend not to be quick. However, they said the trade body will be pushing the issues raised in it to try and secure what it is proposing.
CPT says the support it is seeking is in line with the Government’s Coronavirus Business Interruption Loan Scheme, which it reminds the Treasury has been difficult for the industry to access.
The letter then goes on to remind the Government that the coach sector has received little revenue during the peak summer-months. It stressed most operators are due to lose the majority of their revenue for 2020 and do not expect key revenue streams from tourism and private hire to return to pre-pandemic levels until the end of 2021, with home-to-school revenue not accounting for much income. Without support, CPT stated 40% of operators will go out of business.