Friday, 25 November 2011

A VERY HAPPY NEW YEAR...

Even in times of economic uncertainty at this time of year people are looking forward to Christmas and the New Year – and if they live in the southern half of our country they have been bracing themselves for the latest rise in the Severn Bridge Tolls. So news that the Severn bridge tolls will rise from £5.70 to £6 pound per car (an increase of 30 pence), small goods vehicles and small buses will have to pay £12.10 (an increase of 60 pence) and heavy goods vehicles and buses will pay £18.10 (an increase of 90 pence) is not good and will hit families, commuters and businesses when they can least afford it.

Severn River PLC who operate the franchise will certainly have a very happy new year, admittedly at our expense; they are able to raise the bridge tolls each year by the inflation rate as part of the terms of the Severn Bridges Act (1992). There timing is amazing one month before Christmas - as has I have said before the bridge tolls are an extra tax on jobs, on Welsh people going to work and on business operating in the south of Wales.

Rather ominously back in May 2011 the Welsh Affairs committee had received no hint or suggestion that tolls on the Severn Bridge will fall on the Severn Crossing when it came back into public ownership. The Committee had itself recommended (December 2010) that the toll could be as low as £1.50 in 2017 when ownership of the Severn Crossings reverts from Severn River Crossing PLC back to public ownership in 2016 or 2017 (or even perhaps 2018).

In October 2010, Professor Peter Midmore's independent economic study of the Severn Bridge tolls boldly recommended that the revenues should stay in Wales, once the crossings revert to public hands. The study found that Welsh businesses were unfairly penalised by the tolls and concluded that the money should be shared with the Assembly Government and used to improve Wales’ roads and public transport.

Now it is a matter for the public record that, once the cost of the Second Severn Crossing has been for then the revenue stream will revert straight to Treasury coffers in Westminster. The study of 122 businesses commissioned by the Federation of Small Businesses found the tolls had a negative impact on 30% of firms in South Wales, compared with 18% in the Greater Bristol area.

While noting that the economic impact was not substantial for most, the study found that transport, construction and tourism-related companies reliant on regular crossings had suffered (and continue to suffer) increased costs and reduced competitiveness. The bridges are of such importance to Wales that it is only right that control, or at least shared control, over them is in the hands of the Welsh people.

Plaid wants to see the transfer of powers (to Wales) so we can reduce the tolls on the bridges, something that could have a considerable impact on Welsh businesses and the Welsh economy. With control over the bridges devolved, Plaid has suggested reducing the cost of the tolls to under £2 a car and would also introduce new collection techniques so that people crossing the bridge would have an alternative to paying by cash. Any profit that is made could be used to maintain the bridges and upgrade Welsh infrastructure.

The day when the Severn Bridges come back into public ownership cannot come quick enough along the day that the tolls are cut. In the meantime, there may be a few other things that would be worth examining. In 2011, the Welsh Affairs Committee chair David Davies, MP for Monmouth, noted that due to "the inflexible provisions of the 1992 Severn Crossings Act, neither the government nor Severn Crossings Plc is able to freeze or reduce the toll without incurring significant costs."

A fair point, it might well be worth inquiring how come the Act was so badly written? And whether or not any individuals (elected or not) directly or indirectly benefited (financially or otherwise) with a seat on the board or with contributions to Party funds? Now that might well be worth a freedom of information request or some investigative journalism – now there's a thought?

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