An economic study of the effects of the Buncefield oil depot explosion indicates that the incident has cost firms on the local Mayland’s estate over £70m.

The Buncefield ‘economic and business confidence impact study’, commissioned by the East of England Development Agency (EEDA), shows that 25 businesses were seriously affected by the blast and, of these, 16 have had to relocate their operations entirely, resulting in the relocation of 1,422 jobs. Despite this, the impact on redundancies has been limited to 79 people, of which 21 have already found alternative employment.

While the report acknowledges that there is a great deal to be done in terms of planning and addressing issues though, it stresses that – with both public and private sector co-operation – the site can reposition itself to fit the aspirations of the Hemel 2020 Vision, which seeks to bring forward regeneration projects and developments to enhance the quality of life of those in Hemel Hempstead. In addition, the report indicates that the disaster has also ‘provided the necessary focus for transforming the Maylands estate’ and calls for a new master plan and professional team, which can advise on the best way forward.

David Marlow, chief executive of EEDA, said: “The immediate impact on businesses at Buncefield has been considerable, but we are working hard with partners to redress this. There is still a long way to go, but the business community at Maylands can now look forward to the future with a positive attitude. In addition to the negative effects, this study shows that beyond December’s disaster there is a light at the end of the tunnel. EEDA will continue to work with our partners in the area, including Dacorum Borough Council, English Partnerships, and private sector organisations to look at ways of improving the area in a long-term and sustainable fashion.

“It is important that the plan for Maylands fits in with the holistic view for Hemel Hempstead’s future needs too,” added David. “One of the important lessons that we have learnt from this study is that small firms have been especially hard hit as they often operate from one single site, therefore it is imperative that future measures are put in place to combat this.”

Following the explosion, EEDA commissioned the economic impact study to assess the impact of the incident on the wider economy. The objective was to explore the role that Maylands played before the incident, investigate the negative impacts of it, and highlight the next steps to recovery and success. EEDA has also provided £3.0m in order to assist with the economic regeneration of the area, including funds to help develop a new business centre with accommodation for small businesses.

http://www.eeda.org.uk/

•Date: 20th June 2006• Region: UK • Type: Article •Topic: BC statistics
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