Virus could put my coach firm off road
Owner’s action call
A Perth and Kinross coach company owner and director has said his business is on “the very edge of closure” due to the devastating impact of the coronavirus crisis.
Gary Rutherford’s family-run firm Earnside Coaches Ltd, based in Glenfarg, faces 18 months with little or no work to keep the business afloat.
Mr Rutherford revealed that his 10 coaches currently sitting idle in his yard are costing him about £170 per day each due to insurance and capital costs.
The popular enterprise was started by his grandfather in Bridge of Earn in 1968. It now employs 17 staff from Perthshire and Fife.
As well as transporting tourists to visitor attractions across Scotland, Earnside also helps get 200 children to and from school during term time, while supporting sports clubs and music groups.
The business also travels further afield operating tours to the rest of the UK and mainland Europe for holidaymakers and school educational trips.
And now Gary is calling for emergency financial aid to rescue his business, and others like his, to avoid significant widespread job losses.
He said: “My company and many others like us are finding ourselves at the very edge of closure and if industry specific support isn’t offered soon, I fear that we may see a near total industry collapse in weeks.
“We understand that many industries are suffering; however there are some unique factors for the coach industry that mean that we’re being hit particularly hard by the crisis.
“By its very nature the coach tourism industry is a seasonal one with many companies, such as ours, running at, or close to, a loss during the winter and using the busier summer season to support the business through the next winter period.”
Mr Rutherford added the coach tourism industry is not eligible for emergency funding from the Scottish Government, and few firms have been able to access aid through the Coronavirus Business Support Fund, which does not include “coach” in its list of qualified businesses.
“We, and many operators like us, have seen a total loss of business, not only during the initial containment and delay phases but also throughout the longer tourism season and even into the remainder of 2020,” he warned.
“Whilst this story is similar to that seen by the wider tourism industry, there are unique factors that are having a disproportionate impact us.
“Coaches cost around £300,000 per vehicle. Many operators have recently had to increase the rate of vehicle investments in order to help tackle the climate emergency and meet stringent standards for Scotland’s forthcoming low emissions zones.
“My company alone has invested £1.8m in vehicles over the last six years.
“These vehicles are now accruing large debts, unable to move or work due to the travel restrictions.”
A Scottish Government spokesperson said: “Our support for business now exceeds the business support consequentials passed on from the UK Government and actively works to fill the gaps in the UK scheme.
“The new package of measures announced last week extends the Small Business Grant and the £25,000 Retail, Hospitality and Leisure Grant Scheme in response to feedback from business.
“A further £100 million fund is also being made available to protect selfemployed people and viable micro and SME businesses in distress.
“We promised to pass on every penny received from the UK Government to businesses in Scotland and that’s what we are doing.”