Future of the Coach Industry

Abena Oppong-Asare Excerpts

Thursday 10th December 2020 Westminster Hall

[Abena Oppong-Asare (Erith and Thamesmead) (Lab)]

It is a pleasure to serve under your chairship, Dr Huq. I thank my hon. Friend the Member for Easington (Grahame Morris) for securing this important debate.

Three months: that is how long a family-run business in my constituency has left before it goes bust. For the benefit of the Government, who have shown little interest in the plight of small, family-run businesses so far, I will explain what that means. It means that more than 30 people will lose their jobs, livelihoods and sense of purpose. It means that vital transport for key workers and schoolchildren in the constituency will be cut off. It means that finances will go unpaid and the debt crisis will rise.

I have not one but two family-run coach companies in my constituency of Erith and Thamesmead: Phoenix Tours and Abbey Travel. If answers are not provided today on how the Government plan to support the coach industry, the consequences for my constituents will be devastating. Phoenix Tours revealed that it has sadly already laid of six members of staff during the pandemic, and is struggling to keep up with its monthly outgoings. Its future continues to look bleak. The business was unable to access any form of Government grants, as it is not considered to be in the retail, leisure or hospitality industries. It has taken advantage of the bounce back loan scheme, but this loan was used in a mere month due to the huge costs of its outgoings—costs that have only increased due to insurance providers forcing prices for coach companies during the pandemic. I therefore ask the Minister, given that most of our towns and cities are staring tier 3 restrictions in the face, what measures will the Government put in place to ensure that the coach industry receives a respite from the insurance and finance payments?

Abbey Travel has also laid off 50% of its staff, after 99% of its bookings were cancelled. It lost £400,000 of bookings from Thomas Cook alone. I also know that it is not through irresponsible decision making that these companies have lost all of their business and are now struggling financially. This point has been echoed by many Members today. In fact, both companies have acted with the utmost social responsibility in the past few years, investing millions back into their businesses to ensure that their vehicles are environmentally friendly and accessible for disabled people. The Government have relied on businesses to take action to help us achieve environmental targets. Now, when businesses are on the brink of collapse, the Government really need to take time to support them.

It is with great sadness that I am taking part in this debate. I have heard from constituents about the huge struggles they have faced this year—both professional and personal. I need a commitment from the Minister that she will call on insurance providers to act responsibly to support coach companies during this time. I need a commitment that she will call on her own Government Department to set out a plan to address the needs of coach companies in my constituency of Erith and Thamesmead.