Independent Survey

AssetCo PLC
11 March 2008



For Immediate Release                                              11 March 2008



  AssetCo releases Independent Survey on the Fire Service - 'AssetCo Fire and
               Rescue Report 2008: and they put out fires too...'


AssetCo plc, is pleased to launch its first ever independent industry survey.
The study was conducted some five years into a major change programme which has
seen the remit of the fire service broaden significantly from one which focused
primarily on fighting fires to one which now embraces community safety and fire
prevention duties, such as the fitting of smoke alarms, alongside rescue
coverage in the event of terrorism, flooding and major accidents.


In addition to over 80% of Chief Fire Officers (CFOs) in the UK who took part in
the study, 966 members of general public were also surveyed on their opinions of
our ever-changing fire service.

Despite having reported good progress on the first phase of this major national
transformation programme, AssetCo's survey has revealed that nine in ten CFO's
anticipate future funding shortages in the Fire and Rescue Service (FRS), which
many think will inevitably lead to them having to focus more on traditional
roles or consider station closures, whilst a highly supportive public seemingly
have little awareness of the changes underway.

A summary of the key findings of the report follows:

1) Ever-increasing responsibilities for the Fire Service

In general, fire chiefs believe they have made good progress adopting their
broader responsibilities:


  * 95%+ support all aspects of the new, redefined Service
  * 90%+ of FRAs have completed the strategy with respect to major road
    collisions

  * Two thirds have now implemented their fire prevention programmes

  * However, more than 60% have yet to complete the process of planning for
    dealing with local flooding


CFOs throughout the FRS report that they are wrestling with a combination of
difficult challenges:


  * effectively managing the complexity and speed of the changes they are
    being asked to make
  * continuing to deliver and maintain current standards of service delivery
    with tightening levels of funding
  * meeting political expectations
  * securing staff commitment to embed changes in working practices.



2) Funding is of critical concern to CFOs


a) 80% of CFOs report being under financial pressure.

This sense of pressure has arisen from two sources; i) extending the role of the
Service, which CFOs estimate has required an additional 4% over and above their
previous budgets and ii) efficiency savings they have been required to make in
the last five years (estimated at 9% on average), and the further efficiency
savings they are expected to make in the next five years (estimated at 7%).


Only a quarter of the additional funding for the extended role of the FRS came
from new sources, such as New Dimensions which was set up following the events
of 9/11, and 73% of CFOs believe these sources will, in any case, diminish or
dry up completely in the coming years.


  * 90%+ of CFOs expect to be facing a deficit in the funding levels required
    to deliver the current style of service provision in the next five years.


  * 78% of CFOs believe they will have to use alternative sources of capital
    funding in the years ahead, including private finance, leasing /
    contract-hire and outsourcing.


b) The potential consequences of funding deficits


  * 67% of those CFOs who predict a future deficit say they may have to focus
    more on their core traditional roles
  * 52% of these say they will have to consider shutting stations that they
    otherwise would not, and
  * 76% say they will be forced to look at alternative sources of income.



3) What do the public think?


The general public rated the fire service significantly higher than the police,
local, or national government on honesty, reliability, integrity and
responsibility (on average scoring more than eight out of 10 on all these
attributes). An underlying message in

these results may suggest a lack of public appreciation of the role of the
elected councillors/local Fire Authorities which govern the highly regarded fire
services.


Despite this regard for the standing of the FRS, the public, in contrast with
fire chiefs, is yet to be convinced about the changes underway in its work,
having been left behind in terms of awareness of the new shape and role of the
FRS.



  * 48% of the general public agree with adoption of the new responsibilities,
    but the rest either reject the idea, or are sitting on the fence
  * 43% think the additional new roles will reduce public confidence, and a
    majority,
  * 54% are worried that 'they will be less focussed on putting out fires



David Smith, Managing Director, AssetCo who commissioned the study commented:

'Firstly I would like to thank everyone who has contributed towards this report.
We feel privileged that so many of the leaders of the UK FRS chose to take part
in the research and have been delighted with the interest shown in the report by
those in authority keen to ensure the appropriate evolution of the shape and
organisation of a world class fire and rescue service.

'At the outset we did not know what to expect but the results have been very
illuminating. Clearly they highlight some considerable issues to be addressed,
not about the performance of the Service, but possibly about the structure of
the Service which is certainly a factor in how much it costs to operate.'

                                  *** ends ***



For further information please contact:

AssetCo plc:

Sue Alsop Tel: [phone]


Buchanan Communications            Tel: [phone]

Isabel Podda



Notes for editors:


About The AssetCo Fire and Rescue Report 2008, 'and they put out fires too...'


1.  Charts referred to in the body of this release are available as an
    attachment or by request to [e-mail]


2.  The 'AssetCo Fire and Rescue Report 2008; and they put out fires
    too,' is an independent survey commissioned to gain a sense of progress
    achieved by the Fire and Rescue Services in response to the improvement process
    described by the Fire and Rescue Service National Framework.


3.  All Chief Fire Officers were contacted about the study's aims and
    invited to anonymously share the benefit of their first hand experiences of some
    of the changes they have been asked to implement. Over 80% of Chief Fire
    Officers participated in the study - an exceptionally high level of response.
    During the autumn of 2007 interviews were undertaken with 49 of the Chief Fire
    Officers (CFOs) in the UK. To supplement this quantitative research, and to
    ensure a rounded view, in-depth qualitative interviews were also commissioned
    with people in roles or external bodies (referred to as 'inside observers') who
    influence have direct interest in or can influence the role or organisation of
    the FRS. Where quotes are attributed from these interviews in the report the
    individuals concerned were asked for their permission to do so. Full details on
    the methodologies employed are provided in detail in the report.


 4. The study also combined and contrasted the results of this unique research
    with interviews of members of the public and with new analysis of publicly
    available data. Face-to-face interviews were conducted with 966 members of
    the general public, sampled to be representative of the adult population of
    Great Britain and Northern Ireland, asking them about their views on the
    Fire and Rescue Service.


 5. The work was undertaken and this report prepared for AssetCo by Jon Francis
    of Market Intelligence Management Ltd (www.miml.co.uk). The research
    fieldwork used in the compilation of this report was provided by TNS and
    Swift Research, and was managed according to MRS guidelines.


 6. As a small thank you for the generous participation of Chief Officers who
    kindly shared their time and knowledge, AssetCo were delighted to pledge a
    £5,000 donation to the Fire Service Benevolent Fund.


About AssetCo (www.assetco.com) AssetCo plc, (AIM : ASTO), is a leading provider
of outsourced and managed support services to the emergency and homeland
securities markets in Great Britain and Northern Ireland and emerging markets
overseas. The company employs some 860 people in 12 locations.


Subsidiaries of AssetCo plc include:

AssetCo Emergency Limited AssetCo Group Limited

Papworth Specialist Vehicles Limited AS Fire and Rescue Limited
Collins Youldon FSE Limited
Todd Research Limited BlueAmberRed Limited
Simentra Limited AssetCo Emergency Resource Limited

AES Group UV Modular Limited

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