Fire engine replacement costs soar

Question 472                        From Andrew Dismore AM (Labour Group)


Fleet replacement programme

At originally anticipated prices and current exchange rates, what is the best estimate of the additional cost to the fleet replacement programme, as a result of the drop in the value of Stirling against the Euro consequent on the Brexit referendum?


Commissioner’s reply: At this point it is not possible for officers to advise accurately on any potential additional costs due to the ongoing volatility of the currency markets. Members should note the pumping appliance Invitation to Tender (ITT) was for 127 vehicles and at this time no formal communication has been received from Babcock Critical Services requesting a price change for the second batch of 74 appliances.


Supplementary Information

Sterling has fallen by approx. 11% against the Euro since the EU referendum. As approximately 50% of component parts and materials come from within the Eurozone, so as a rough calculation it would be reasonable to assume a potential increased cost for replacement vehicles of around 5%, should suppliers choose to pass on any increases. A nominal 5% price increase for each pumping appliance would result in an increase of £12k on the original vehicle price to £247k each, giving a potential total increase of £876k for the second batch of vehicles.


In terms of the effect on our total planned capital spend of the next 4 years, this is potentially £2,625k:

  • 17/18 £25,800k x 5%                  £1,290k
  • 18/19 £15,790k x 5%                  £790k
  • 19/20 £8,600k x 5%                     £430k
  • 20/21 £2,300k x 5%                     £115k


The figures do not include any inflationary pressures.