Short-sighted directors are destroying years of hard work by fleet managers to create safer and cleaner fleets as they desperately try to cope with the economic crisis, experts have warned.

Senior managers are taking ‘deadly risks’ by balancing the benefits of continuing effective risk management programmes against the potential of being prosecuting for letting safety standards slip.

Now, a leading fleet driver training organisation is calling for the industry to battle to put risk management and driver development back at the ‘top of the agenda’.

Simon Protano, head of corporate risk management and driver development at the TTC Group, said: “Many companies are starting to balance the risk of prosecution against the perceived cost of implementing a risk-management programme.

“The consequences of such action could well be deadly and may lead to the first prosecution of a fleet under new Corporate Manslaughter legislation.”

The same short-term approach with long-term consequences is being taken when it comes to finance.

While fleet operators should now be reviewing their overall funding strategies as a matter of urgency, this isn’t happening in many cases, according to Fleet Audits, the leading consultancy for business travel optimisation.

Stewart Whyte, managing director of the consultancy, said: “There is clear evidence that several contract hire and leasing providers are cutting back on new client underwriting, so reducing choice and flexibility for fleet managers.

“Several of our recent clients have also reported that in some cases there is a clear reluctance on the part of their suppliers to replace contract-expired units with new ones.

“This seems to be based on reluctance to crystallise the inevitable losses on disposal.

"Contract extensions are now actively being promoted by certain companies.”

He said a fleet review was extremely urgent with the looming launch of capital allowance changes that provide major savings for fleets running vehicles emitting less than 160g/km of CO2.

Mr Whyte said: “The difference between a ‘right’ decision and a ‘wrong’ one can easily top £750 per car, at the after-tax stage.

"This is far too much – especially in today’s climate – for any fleet to ignore.

“All fleets really need to grasp the fact that this is not just an academic accounting issue.

"It is really vital that the funding strategy is reviewed to establish any downside risks, and opportunities to reduce overall fleet costs.

“It’s also essential for the allocation policy to be reviewed in the light of the new reality, with serious consideration of the cost implications of continuing an open-choice policy.”