Aftermath of Bridgend Fire: Who covers the costs?
The massive industrial fire that destroyed an unsprinklered warehouse in Bridgend, Wales earlier this year has left a lasting impact on the local business community. With over 40 companies affected and 37 unable to resume trading, the question of who will bear the financial burden of this disaster has come to the forefront.
The devastating fire broke out on January 19th in a building largely housing a warehouse owned by the Owens Group but it was also home to a significant number of other businesses ranging from a tyre company and storage facility to a company selling paper products. The sudden and complete destruction of the premises has left these companies grappling with the aftermath.
In the wake of the disaster, Bridgend County Borough Council has stepped in to offer practical help and support to the affected businesses. The council has assisted in locating alternative premises, identifying sources of funding, and providing other resources to help the companies get back on their feet.
However, this raises an important question: who ultimately pays for the ongoing disruption and the council's support efforts? While the council's intervention has been vital in mitigating the impact on the local businesses, the long-term financial burden of the fire's consequences may extend beyond the council's resources. It can also take time for these businesses to re-establish supply chain partnerships and regain customer trust.
Furthermore, fire safety experts have highlighted the lack of sprinklers in the warehouse as a contributing factor to the extensive damage. Had the building been equipped with suitable fire safety measures, the scale of the destruction may have been significantly reduced, potentially mitigating the long-term impact of the fire.
As the affected businesses work to rebuild and resume operations, the question of who ultimately pays for the damages and ongoing disruption remains unanswered. Will the responsibility fall solely on the local council, or will there be a broader effort to distribute the financial burden and ensure the long-term viability of the businesses impacted by this disaster?
Recent statistics reveal the average cost of a large warehouse fire amounts to £5.9m1 and at least one warehouse fire occurring every working day in England alone. These figures underscore the critical importance for businesses to carefully consider the impact of fire and its devastating consequences.
Quickly stopping the spread of fire when it is first detected is the best way to limit damage and minimise costs and impacts. Sprinklers have been shown to contain, control or extinguish fires in 99% of cases when caused to operate2. The affected business can be operational within hours, avoiding the economic and social costs.
The aftermath of the Bridgend fire has exposed the complex web of responsibilities and financial implications that arise from such catastrophic events. As the business community and local authorities continue to navigate this challenging situation, there remains significant implications for the future resilience and recovery of the affected businesses and the broader economic landscape of the region.
1Fears pandemic-led e-commerce boom could spark rise in warehouse blazes
2Efficiency and Effectiveness of Sprinkler Systems in the United Kingdom: An Analysis from Fire Service Data – Optimal Economics May 2017
Image Credit: @npaulroberts