Details of how Caerphilly town centre traders can apply for compensation for loss of business during the ongoing roadworks have been published.
Last week Caerphilly Observer told how the closure of Cardiff Road gas works had led some traders to report a drop in trade of up to 85%, leading to doubts that some could survive.
Following this, local councillors representing the St Martin ward urged traders to apply for compensation if they had suffered a loss of business.
Under The Gas (Street Works) (Compensation of Small Businesses) Regulations 1996, small businesses can claim if their business has been affected for a period exceeding 28 days.
The following is from Wales and West Utilities, which is carrying out the gas works in Caerphilly town centre.
Claims for loss of profits will be considered providing they meet the following criteria:
Period of disruption exceeds 28 days
The annual business turnover is below £1,512, 000.00
The business is not part of a large chain or group of companies
No claim if loss of profit is (i) less than £500 or (ii) does not exceed 2.5% of annual turnover.
Notice of claim is made within 3 months of completion of works and supporting evidence provided within 6 months of completion of works.
If the above criteria can be met the following information is required:
Confirmation from Wales & West Utilities Ltd that the disruption period exceeded 28 days.
Copies of financial statements or accounts together with confirmation of your VAT status.
Figures for the period of disruption and figures from the same period last year to establish the loss of business suffered.
Any other information that may support the claim.
The above will form the basis of a claim from which it should be possible to consider compensation for loss of trade. It should be noted the Regulations do not provide for the payment of claimants professional advisors fees.
Traders wanting more information about the compensation scheme should contact Wales and West Utilities on 0800 2946645 or email enquiries@wwutilities.co.uk
The key phrase is,
"Figures for the period of disruption and figures from the same period last year to establish the loss of business suffered".
Of course, many businesses, including all the indoor market traders, will be unable to supply these figures. They were not trading, from their current premises, at this time last year. This means that they will get no compensation.
It certainly appears from the criteria shopkeepers have to fir into that very few will be able to claim from the scheme.
It maybe that Ward Councillors would now like to meet with the traders, collectively, to explain this compensation scheme, a scheme which they lauded with such fanfare on this publication last week.
I am sure they will be as concerned as the traders at the conditions which have to be met before a trader can even consider applying for compensation. For instance it appears if you are a `small` trader, not VAT registered you cannot apply, if you haven`t traded from your current premises for over a year, and able to produce corresponding months accounts you will not qualify. Tesco, Iceland, or Peacocks, Subway, and the rest which belong to large national groups cannot claim, and others will not be able to claim because they cannot supply sufficient information on `actual` trading losses.
It appears not to be the panacea it has been lauded to be.