City News Desk - Update Fire Brigade comments 4pm

AssetCo the company who contracts the maintenance of London Fire services are facing serious operational difficulties.

Shares in AssetCo fell by 22% after the company revealed it needs £4million to settle its debts. The London Fire Brigade Service have retaliated saying ‘it had no reason to expect an imminent service failure. They are currently in talks with Lloyds Banking group to provide extra funding. If talks aren’t reached in time, it has been said it will be Londoners forced to pay. Fire Brigades Union General Secretary Matt Wrack, said ‘the cost will be paid by Londoners in a lower standard of safety’.

AssestCo had hoped to raise cash to meet its short term requirements by refinancing a £51m facility secured against a £62million worth. Yet ‘if it all goes wrong the government will have to pick up the pieces.
 
Operational problems have been evident and for over four months, the company has had custody of 27 London fire engines under the assumption they would be returned to their Fire stations as an agreement was reached between London Brigades and Fire Brigades Union. An agreement was reached last Friday but they failed to return them. Mark Wrack commented on this, stating ‘The recent fiasco of the 27 Fire Engines is a straw in the wind.

A company which is struggling financially must be tempted to cut corners’ The Financial Times reported yesterday;  that they in had now ended these discussion of refinancing ‘as a result of financial uncertainly.’

A London Fire Brigade spokesperson said:

"The FBU seem intent on reinventing facts to create fiction. For four weeks the union leadership have sat on their hands and failed to call off the industrial action. Each and every day that passed was a day inwhich the 27 fire engines could have been returned to stations. Instead
of accusing the Brigade of delaying the return of the engines, the Union should take a good long look in the mirror and ask themselves why theyfailed to call off the action for four weeks after agreement over shift pattern changes had been reached so that we could return the engines.

"The Union claim that Assetco did not have the drivers to return the 27 engines is nonsense. The plain and simple truth is that the Brigade chose to use its own drivers to pick up the appliances so they couldcarry out vehicle checks in an environment where, should there be any
mechanical issues, they could be dealt with immediately."