Brigade hit by cuts sets out trading arm plan

South Yorkshire Fire and Rescue is already part way through a programme which has seen firefighters being made redundant and stations earmarked for closure as a result of Government austerity measures.

But chief officer Jamie Courtney told the Yorkshire Post that he and the brigade’s governing fire authority were hoping to agree plans which would allow the service to make a profit for the first time.

It is understood several other fire brigades are following the same path, with Humberside Fire and Rescue recently signing a contract with Tata Steel to provide cover on its steelworks at Scunthorpe.

But Mr Courtney said South Yorkshire Fire and Rescue would be looking to charge money-making prices for activities the brigade is already engaged in on a not-for-profit basis such as fire safety training.

As a public body, fire brigades are unable to make profits and can only sell services to other public sector bodies, but by setting up a trading company they can transfer some of their functions into the private sector.

Mr Courtney said: “The service’s budget is likely to have shrunk by at least £10m from 2011 to 2015, and managers have been exploring ways of minimising the impact.

“Cuts of 25 per cent to back office staffing and support budgets were announced in 2010.

“Now the service is seeking to create a trading arm to generate income which will be used to boost the funding available for frontline services.

“We already generate income, on a cost-recovery basis, through our Training and Development Centre and by providing services such as fire extinguisher maintenance.

“The creation of a trading company will help us to develop these arrangements further, and in a much more comprehensive way.

“Fire and Rescue Service staff have unique skills in relation to workplace safety, risk management and training.

“There will be many businesses in South Yorkshire and beyond which will feel they can benefit from our expertise.

“We aim to proactively explore those opportunities to help us protect the frontline services we provide to the public.”

At present, West Yorkshire Fire and Rescue and the North Yorkshire brigade do not sell their services privately and a spokesman for North Yorkshire Fire and Rescue said there were no plans to do so.

South Yorkshire’s plans need to be approved by the county’s Fire Authority.

David Cutting, the brigade’s director of service development, says in a report the set up costs will be around £1,500, but a manager might cost around £45,000.

He adds: “Current South Yorkshire Fire and Rescue trading is carried out on a ‘not for profit basis’. We can only ‘trade’ with other public sector bodies on a ‘full cost recovery’ basis.

“The establishment of a trading company would widen the market for our services and change the situation from full cost recovery to one which can make a surplus for reinvestment into the service.

“Feedback from other services suggests that there is considerable opportunity to generate income through a trading arm.”

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