Doubts raised over 'costly' freight transport security measures

News Article - 18 August 2006
Category: Business

New European proposals aimed at improving freight transport security could end up bankrupting businesses, a business federation has warned.

The warning from the Federation of Small Businesses (FSB) comes after the publication of a draft EU measure designed to guard freight transport against terrorism by rail, road and waterway.

Under the draft legislation, facilities managers would have to screen employees and carry out 'supply chain audits' in order for their company to be recognised as a "secure operator".

Although the measures are set to be voluntary until 2008, it is thought the changes would become compulsory subsequently.

"The FSB is very concerned that the struggle to defeat terrorism, which we all of course support, is being misused to create a heavy-handed and bureaucratic system that will put many people out of work, without actually increasing security," said Tina Sommer, FSB European affairs chairman.

"This proposal threatens to put a huge number of firms out of business, put up costs to the consumer and increase red tape on other companies."

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