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Does the white stuff leave red ink?

Douglas Fraser | 21:50 UK time, Wednesday, 8 December 2010

How much does the big freeze cost the economy? Disruption looks expensive, and to some, it is.

Hauliers pay more than £400 a day to have a truck and driver doing nothing much. And while only a few have been completely stuck, those that are moving are doing so only slowly, so that's going to hurt the bottom line.

They're only one part of the supply chain that's in difficulties. Getting fresh goods to the shops is proving difficult, primarily milk.

Farmers are reporting the movement of livestock for slaughter at a vital time of year is problematic too.

Distribution out to retailers is also causing problems for those same fast-moving goods. Bakeries are finding it particularly tough going, so bread's proving hard to locate in much of the country.

So that's income foregone for some businesses, and spending foregone by those who are unable to find what they want. And that displacement of money can be found elsewhere, without meaning the economy as a whole is any worse off.

Frozen pipes

It's going to hurt householders that they have to turn up the heating, or pay for a plumber to sort out their frozen pipes.

But if you're the plumber or the energy utilities, that extra business is good news.

Restaurants have it harder than most. They lose business if people can't or won't go out at night, and those meals are only occasionally going to be postponed. Most are business that's gone for ever.

Hotels are reporting cancelled bookings, including one in Aberdeen where I should have been tonight.

But VisitScotland says its finding some hotels - in Perthshire for instance, where people are staying a bit longer because their travel plans have been blocked.

And in the city centres, where people can't get home from work, there are additional bookings too.

Footfall slips

What about Christmas business, on which so many retailers depend? Much less footfall looks bad for them, and they fear the impact of online shopping, even without bad weather.

The upside for them is that that online shopping is getting stuck, as postal and courier deliveries fail to get through. Royal Mail today apologised for the disruption to deliveries. And if people aren't sure they'll get their Christmas presents in time, they may choose to return to the shops in the next two weeks.

According to Cliff Lockyer, a number cruncher at the Fraser of Allander Institute, all the concern about harm to the economy from the harsh winter earlier this year, and by the volcanic ash cloud closing down air travel, it's hard to see any discernible effect over time.

But what if we're to assume weather events like this are to become more of a feature of life in Britain and Scotland?

That means the public authorities would have to gear up with better heavy-duty equipment, but it would also mean businesses and householders having to invest in weather-proofing as well.

Comments

  • Comment number 1.

    Get rid of Bear and Amey set up by the LabLib admin and return the roads back to the public service as our infrastructure is not for private companies to make profits.

  • Comment number 2.

    We should have learnt lessons from the last snow fall and icy conditions earlier this year(January etc. Unfortunately, it is evident that we have not. Winter decided to strike early in November, is not an excuse, what happened to forward planning.

    Even though authorities say that they have salt supplies to last the Winter, it is evident they do not have it all, and now. At least, perhaps, it is not in this country now, so stocks they do hold will be being depeleted quite quickly. Considering we have had this WEATHER! since at least the 26/27 November not much salt has been used if any in my residential area. Perhaps they have quota to use per day and when it's gone, it's gone!

    All I know for sure is that many roads have not seen salt or a plough and it is a real struggle to move around to work, shop for food and get out of the house in general. We have had no post, bin collections for 10 days and the road and streets around here are in a disgusting state, no plough or salt on the road. Where have the pavements gone? we don't have any, we are having to walk up tracks in the roads! We need reflective vests issued to each household!

    People have had to dig themselves out of their drive, then road where they live, then park cars (abandon) them where they can get out to go to work, after digging them out of second place. Still all this does not work as major routes are letting us down. So lets take public transport, oh dear, that's not running either. What are we all going to do when firms go bust, sorry you have no job, or loose your job because you keep failing to turn up every day. This is serious, because it is the second time this year, and only months after it happened last time! People go out on the roads as they are frightened about loosing their jobs, or having to take annual leave for days missed at work.

    Where do we live in the middle of the country? NO in a town and less than a mile from the centre. We are all doing the best we can,I know, but we cannot keep doing it all, look after neighbours, our paternal family and our own family, dig, cook, work, sleep (what's that)? Community spirit is one thing as the government keeps telling us, but we are ---------! and who's looking after us?

    Now we are running out of food and petrol because the transport network is breaking down. I want to thank all the hard working delivery drivers,doctors, nurses, ambulance drivers, emergency services who are keeping us going, you are doing a grand job under trying circumstances.

    Oh well, tomorrow is another day, let's see do I dig a bit more road tomorrow, check on the parents, neighbours, attempt to go to work at the risk of wasting a few frustrating hours of travel which should normally take 30 mins. Return home, if transport is available to get home, this after making or not making it to work to do the above backwards!

    You feel a right idiot getting on the bus, carrying all the govenment recommend you travel with, spade, warm clothing, hot drink, food, blanket etc;

  • Comment number 3.

    Drove from Fife to Glasgow (and rtn) last night via M876 and M80 (back via M8)and can't believe these roads are allowed to be open. Solid and incredibly bumpy ice from Falkirk area to Glasgow city centre. I can only assume that this is to allow the Government to say that the roads were open which is obviously more important/preferable to having to take some more grief while they sort it out properly.
    I'd strongly advise anyone not to go on these roads

  • Comment number 4.

    Now that the roads are 'open' and there is no more snow forecast for a few days can we please have the side roads and pavements sorted out.

    Where I live in Fife there are no salt or grit bins and folk have tried their best to clear the pavements but the whole place is like a skating rink. It was the same last year and we have been asking for bins to be provided since then. It's supposed to be a 12 day lead time - it's now nearly 12 months.


    It makes me wonder why we ae paying Council Tax for services we don't receive.

  • Comment number 5.

    Along with the ludicrous costs of PFI - brought in by Thatcher and expanded by Gordon Brown, New Labour in North Britain contracted out main roads maintenance to Bear and Amey et al.
    The SNP and virtually all of COSLA predicted it as being a recipe for disaster.
    New Labour's Charlie Gordon made the useful suggestion last year that the Scottish Government should take £30,000,000 out of the winter roads budget.
    New Labour, Old Tories and Confused Liberals - good for Westminster............
    Slainte Mhor

  • Comment number 6.

    This freeze was predicted as long ago as June and confirmed to be inevitable in August when it was revealed that the Gulf Stream was dead and North Atlantic temperatures 10 degrees below normal (this is ENORMOUS in oceanic terms)

    If the ´óÏó´«Ã½ were doing its job, it would have investigated and reported on this, but no - not a dickie bird about it anywhere - disgraceful.

    A search for "Gianluigi Zangari" will reveal the original research or it is all linked at

    FreeScot

  • Comment number 7.

    Public wanted action, so if for whatever reason you have to abondon your transport it won't be heavy snow / ice to worry about it'll be a heavy fine! Mr Plod in action, just where was PC Plod when a haulage truck pulled up for the night because he'd timed out on his taco, he simply was not concerned about the 100+ cars behind him. PS PC Plod main HQ (Motherwell) was within walking distance, but their control said all their units (Cars) were stuck in the snow, need to use a diffrent word than PLOD! But would probably get moderated...the experiment using private contractors has failed....but we won't learn from it!

  • Comment number 8.

    If councils stopped squandering cash on diversity, equality, and all the other non essentials, and got back to the days when they employed roadmen,( now all largely paid off as easy marks to save money ), maybe there would be a viable workforce willing to shovel grit on to the road and clear pavements, rather than pepushers lolling in offices (if they managed to get to work ), surfing the net to see what the roads are like for getting home.

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