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Executive Report:

Urgent action required

Reports following last year’s floods anticipate more frequent extreme weather. Editor at Large, Nigel Strickland, discusses how pro-active hirers can help the emergency services and other agencies develop clear rapid response plans.

May to July 2007 was the UK’s wettest ever recorded period in 250 years. Tewkesbury, Sheffield and Hull were devastated by floodwaters, leading to an estimated £3 billion of insured losses and another £1 billion on other costs. Floods Recovery Minister, John Healey, said the government’s response was one of the biggest operations since World War II. Lives were lost, over 55,000 homes and businesses were affected, and one year on, more than 5,500 dwellings have still not had their occupants restored to them.

Two major reviews have since been undertaken. Sir John Harman’s for the Environment Agency, published last December, found that "Two-thirds of the properties flooded during the summer were damaged because drains and sewers were overwhelmed, and there is complexity [regarding] who is responsible for surface water flooding.” He added that the extreme flooding highlighted how poorly protected much of our vital public infrastructure is, with water and electricity supplies particularly vulnerable.

Weaknesses exposed

In his interim report for the government, Sir Michael Pitt says flood risks are here to stay owing to climate changes, and that we must adapt accordingly. In part 5.39 of the section The Emergency Response, he suggests weaknesses were exposed in arrangements for providing logistical support to emergency services. He recommends that the Cabinet Office, and other departments, should consider the costs, benefits and feasibility of establishing arrangements for urgent acquisition of supplies during a major emergency, including call-off contracts or creating national or regional stockpiles of equipment and consumables.

Two key points, then, for our industry to consider. First, climate change and the inevitable disruption of essential services means that all businesses should have recovery/continuity plans, not only in place, but tested and updated. Encouragingly, 80% of organisations with such measures would be expected to survive a major business discontinuity; conversely, of those without any such plan, only 20% might survive. Business continuity and disaster recovery planning is a key governance obligation under the UK Companies Act 2006. This gives statutory force to directors’ common law duty of care.

Secondly, hirers must consider how to best respond to extraordinary pressures created by extreme events. The 2007 floods created unprecedented demands from agencies like DEFRA, local authorities, the Environment Agency and the MoD for emergency power, lighting, pumps and portable sanitation. Requirements outstripped the resources of government agencies and local hire companies, with equipment having to be sourced from throughout the UK and, even, abroad. Last August, we reported on the many hire companies and individuals who responded with professionalism and determination, but obviously, better preparations are a necessity to meet increasingly likely emergencies.

Established processes

Some government agencies and hirers had systems that served them well. Paul Breen of SRP Toilets in Lincolnshire recalls how existing supply chain agreements with Serco, on behalf of the MoD, enabled swift deliveries of portable toilets to the Gloucester region. Servicing schedules were then quickly implemented, with both hirer and supplier having established processes and communication arrangements in place.

Elsewhere, however, things went less smoothly, with many situations highlighting a lack of understanding within government agencies of how the hire industry functions, and what it can provide. Surely on-going dialogue must be established? Hirers in England and Wales could help establish this at local level by engaging with their Local Resilience Forum (LRF) (www.ukresilience.gov.uk); those in Scotland should visit the Scottish Executive Justice Department Civil Emergencies web site (www.scotland.gov.uk/topics/justice/emergencies); while Northern Ireland hirers should consult the Northern Ireland Central Emergency Planning Unit (www.ofmdfmni.gov.uk/index/making-government-work/emergencies.htm). LRFs, the first tier in resilience response, are typically based on existing county police council structures, although county councils will also have their own civil contingency units or emergency planning teams (EPTs).

In a series of phone calls to randomly selected LRFs and EPTs, EHN posed questions to gauge whether respondents felt the hire industry was a stakeholder in the ‘resilience’ process, and how they sourced hire equipment during emergencies. One of the most enlightening (if not disconcerting) responses came from a Head of Emergency Planning at a major county council who declared, “No, the hire industry is not something we need to consider”. When asked where the council would obtain portable toilets, pumps and power, they replied, “That’s a good point which we should consider and in fact someone mentioned it just the other day”. A surprising reply also came from an EPT in an area badly hit by last year’s floods: in times of emergency they would “use Yellow Pages to find a supplier”.

Good working relationships

Thankfully, other responses were more positive, giving examples of good supply chains for hire equipment, often constructed around existing good working relationships with the local council’s direct works organisation. Several LRFs and EPTs stressed the need for emergency contact details and information to be constantly updated. Respondents also pointed out that personnel within an EPT might never have had experience of engaging with the hire industry, and that local dialogue would be positively received.

Such dialogue could establish channels of communication for hiring equipment out of hours, recognising that emergencies entail round the clock functioning. Hirers should explain to LRF or EPT staff exactly what equipment is available for hire, and where stocks of relevant equipment are kept. Certainly, do not assume that a civil servant will understand the difference between, for example, a 2in trash pump and a 2in submersible! Provide updates on any new fleet additions that could be of benefit in crises. Remember also that, in times of emergency, people may be handling equipment they are unfamiliar with, so the need for clear instructions at the point of handover becomes paramount. Perhaps a pro-active hirer could offer training in advance. Sir John Harman’s report also suggested that access to PPE for workers was a major problem last summer.

Maximum support

Dialogue is a two-way process, so hirers should ensure they understand the chains of command and areas of responsibility within their local government agencies and utility companies. Also, as flooding will not be the only contingency to be faced in the future, hire fleets should be equipped to provide maximum support with products such as security fencing, barriers and steam cleaners. Once the immediate emergency response is over, so begins the recovery phase and last year’s floods led to unprecedented demand for driers and dehumidifiers that quickly outstripped local supplies. While national hirers can call on additional stocks from other regions, options for local independents might be more limited. Perhaps, however, the establishment of regional or national networks in crisis situations should be considered?

Two clear conclusions emerge from last year’s floods. First, as we can expect more of the same, enhanced emergency planning and civil contingency preparations are being demanded by central government. Every business must make contingency plans. Second, a major emergency in your area will disrupt your ordinary day-to-day business - and income. Planning your ability to react to the extraordinary will not only maximise your effectiveness to the benefit of the wider community; it will also ensure you gain the maximum financial benefit if other sources of business income are hit.

Executive Hire NewsArchivesJuly 2008Executive Report › Urgent action required

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