09/03/2006 - News In Brief

Firms couldn't cope with flu pandemic

Almost a quarter of firms do not have sufficient working capital to enable them to survive a 12 week outbreak of avian flu, it was claimed this week.

A survey by the London Chamber of Commerce and Industry (LCCI) revealed that 23% of directors admitted that their business would not be able to survive for three-months if their customer base were disrupted by a pandemic.

Only around 30% of firms questioned had updated their contingency plan specifically to deal with an avian 'flu outbreak, while a further 30% did not have a contingency plan in the first place.

LCCI president Michael Cassidy said: "This is not scaremongering. Thinking ahead is the best way of tackling this type of threat. Running out of cash through lack of fore-thought is the swiftest way to insolvency, particularly with smaller businesses."

"This is a worrying outcome of our survey which should be treated as a wake-up call for business leaders."