'Drought' could close firms
Small firms that rely on a constant supply of water could be put out of business this summer, if the water companies get their way.
The Federation of Small Businesses (FSB) wants the Government to stop water companies from introducing 'drought orders'.
The FSB is particularly riled at Southern Water's submission to the Drought Order Inquiry, which says:
"Window cleaners and (non-automated) car washing service providers will be greatly impacted by the ban as they source water largely from the network system and use equipment involving a hosepipe… The small scale of many of these businesses means that this economic activity will not cease for just the duration of the ban, but may close permanently. However, the relatively low set up costs for many cleaning businesses means that unmet demand will attract new service providers in the period after a ban. The cost to the economy from the loss of small businesses closing and subsequent loss of jobs in these areas is therefore likely to be relatively low over the medium term.�
The FSB reckons it's time the big water companies started investing more of their profits in fixing leaks, which it blames for the situation in the first place.
Spokesman John Holbrow said:
"The amount used by small firms is a drop in the ocean compared with the amount lost by the water companies through leakage. Yet small firms are threatened with closure while the large water companies continue on in their inefficient ways."
