THE TAX ON GOING TO WORK

Cross the Bridge(s) and pay the tax on jobs! 

The Severn bridge tolls are a tax on going to work and are a tax on doing business and its time to bring an end to the tax on going to work. Even though the private toll franchise may come to an end in 2018 the tolls may yet continue to be collected until 2027 by the Westminster Government and the Department for Transport.

A Plaid Cymru freedom of information request revealed that while the Severn crossings are likely to finally return to public ownership by 2018, the Westminster Government will still have the right to recover its costs. This right lasts until 2027. With the present toll rates it would take one to two years for the Westminster Government to recoup its costs but at the moment it is deliberately keeping its intentions hidden.

The Westminster Government needs to come clean on its plans after 2018 and whether it intends to keep charging up to 2027 and beyond. With control of the tolls devolve a Plaid Cymru Government would reduce the tolls to around £2 (under today’s prices) to cover maintenance, staff costs and contingencies. Eliminating the tolls altogether would be kept under review and would depend on costs.

The tolls could form a useful revenue stream for Welsh Governments, but the priority of Plaid Cymru is to cut the tolls. By the time the two Severn Bridges come back into public ownership in 2018, Severn River Crossings plc will have milked its cash cow to the tune of about £ 1.029 billion pounds. The scale of the profits has been helped by the fact that routine maintenance of the old (M48) Severn Bridge (which is periodically closed at weekends) has continued to be funded by the Department for Transport, from the public coffers.

We simply cannot rely on the Department for Transport to act to further our interests at all. It is important that preparations for the end of the privately administered toll franchise begin as soon as possible. The Severn Bridges (and tolls) might well be out or sight and out of mind to most Westminster based ministers but they loom very large in the imagination (and the wallets) of long suffering commuters, businesses and visitors here in the south as they are literally a tax on going to work and on doing business.

The tolls to cross the Severn Bridge and Second Severn Crossing into Wales have risen yet again. From 1 January (2015), cars have to pay £6.50 - up from the current £6.40 - small goods vehicles and small buses received a 30p rise to £13.10, and heavy goods vehicles and buses faced a rise up to £19.60, from £19.20. The current owners of the Severn Toll bridges are Severn River Crossing PLC who are able to increase the cost every January in line with the Retail Price Index.

In a response to a Freedom of Information Act by Plaid, the UK Highways Agency, said:

“Severn River Crossing (SRC) is entitled to collect a defined sum from the tolls (£1,028.9m in July 1989 prices) and the current forecasts indicate that this sum will be recouped in 2018. 

“After this time, the crossings will be handed back to the Government. No decisions have been made regarding the future of the Severn bridges.  From this point onwards, government has the right to recoup its own costs from the construction, maintenance and management of the bridge until 2027.  This would be for costs that fall outside of the scope of the current concession for example costs incurred for cable corrosion work. 

“Based on a continuation of current arrangements it is expected to take 1-2 years to recover this money, however, the exact nature of that regime has yet to be determined.”

The Highways Agency listed spending on work on main cable corrosion on the first Severn crossing as  £5,272,000 between 2010-11 and 2014-15. Then in the following three financial years the project spending costs will be another £4,767,000 from next April through to 2017-18.

Back in 2012, Plaid Cymru submitted a Freedom of Information request to the Department of Transport seeking details of any correspondence between it and the Welsh Government on the level of tolls since May 2011, the last Assembly elections. In its response the Department of Transport merely listed emails between the Highways Agency and the Welsh Government advising of planned increases in tolls for 2012 and 2013. An FOI request revealed that there was no other correspondence between the Welsh Government and the Westminster Government. 

In 2012 a report for the Welsh government suggested that abolishing the tolls would increase traffic by an estimated 12% - equivalent to about 11,000 vehicles a day – and that businesses and commuters forked out around £ 80 million pounds a year crossing the Severn bridges.

Back in October 2010, Professor Peter Midmore produced an independent economic study of the Severn Bridge tolls, which recommended that the revenues should stay in Wales, once the crossings revert to public hands. This study of 122 businesses was commissioned by the Federation of Small Businesses revealed that the tolls had a negative impact on 30% of firms in South Wales, this compared with 18% in the Greater Bristol area.

While noting that the economic impact was not substantial for most, the 2010 study found that transport; construction and tourism-related companies reliant on regular crossings suffered increased costs and reduced competitiveness. The 2010 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.

Studies and reports aside we continue to have little choice but to pay what is effectively for many people simply a tax on going to work, doing business or simply visiting Wales.

A MERRY CHRISTMAS (NOT)

As the nights draw in and the autumn days begin to feel colder and drift towards winter, people begin to think about Christmas, paying their extortionate heating bills. If you live in South Wales and commute over the Severn Bridges then lurking at the back of your mind is the prospect of yet another Severn Bridge toll increase on January 1st 2014. The  tolls cost businesses some £47 million pounds (2009 prices) per year so by cutting the tolls to £2 the south Wales economy good gain by at least £34 million pounds.

A Merry Christmas from Severn Crossings PLC - NOT!

Plaid has called for the transfer of powers (to Wales) so that the tolls on the bridges can be reduced, something that could have a considerable impact on businesses and the economy. With control over the bridges devolved, Plaid  would cut the tolls to £2 to cover maintenance costs. The costs for upkeep are £15 million per year, but motorists and vehicles using the crossings currently generate £72 million pounds per year.

While the  tolls would form a useful revenue stream for Welsh Governments, the priority of Plaid is to cut the tolls. By the time the two Severn Bridges come back into public ownership in 2018, Severn River Crossings plc will have milked its cash cow to the tune of about £ 1.029 billion pounds. To add insult to injury the old (M48) Severn Bridge is periodically closed at weekends for routine maintenance, which is funded by the Department for Transport, from the public coffers.

The Severn Bridges (and tolls) may be out or sight and out of mind on a daily basis to most Westminster ministers but they loom large in the imagination (and the wallets) of long suffering commuters, businesses and visitors on a daily basis. There is a risk of the tolls being used to fund a new M4 which would cost £1 billion pounds plus. To do this the tolls could have to stay in place indefinitely and might even go up. This would be against the wishes of the business community and Plaid wants that ruled out.

Back in 2012, Plaid Cymru submitted a Freedom of Information request to the Department of Transport seeking details of any correspondence between it and the Welsh Government on the level of tolls since May 2011, the last Assembly elections. In its response the Department of Transport merely listed emails between the Highways Agency and the Welsh Government advising of planned increases in tolls for 2012 and 2013.

The FOI request revealed that there was no other correspondence between the Welsh Government and the Westminster Government.  In 2012 a report for the Welsh government suggested that abolishing the tolls would increase traffic by an estimated 12% - equivalent to about 11,000 vehicles a day – and that businesses and commuters forked out around £ 80 million pounds a year crossing the Severn bridges.

In October 2010, Professor Peter Midmore's independent economic study of the Severn Bridge tolls which has recommended that the revenues should stay in Wales, once the crossings revert to public hands. This study of 122 businesses was commissioned by the Federation of Small Businesses revealed that the tolls had a negative impact on 30% of firms in South Wales, this compared with 18% in the Greater Bristol area.

While noting that the economic impact was not substantial for most, the 2010 study found that transport; construction and tourism-related companies reliant on regular crossings suffered increased costs and reduced competitiveness. The 2010 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.

When in office the Labour Westminster Government quietly subsidised the Humber Bridge tolls, but, made no move towards doing anything about dealing with the tax on jobs and the tax on commuters that pass themselves off as the Severn bridge tolls. The Humber Bridge subsidy has been continued by the Con Dem Coalition Government, have shown no inclination to transfer control of the Severn Bridges to Wales or offer to help Welsh commuters and businesses out with a simular subsidy.

The various studies are useful, but, we are still waiting for any decision to be made in regard to the Severn Bridger tolls and the future ownership of the Severn Bridges themselves. None of this will bring a crumb of comfort to the commuters who braced themselves to face a bridge toll rise on January 1st 2013 and are now getting ready  to face yet another toll rise on January 1st 2014.

A VIEW FROM A BRIDGE

Well there you have it or perhaps not not? Any changes in the running of the Severn bridges must benefit motorists from both Wales and England, a UK Westminster government minister has warned. The Welsh government has indicated that it would like to take ownership of the two Severn Bridges when they come back into public ownership in 2018.  By then it is expected that Severn River Crossings plc will have milked its cash cow to the tune of about £ 1.029 billion pounds. Meanwhile in Cardiff, Carwyn Jones has said any money left over from tolls could go towards upgrading the existing M4 (in Wales) and Westminster Transport Minister Stephen Hammond has said that no decisions (one way or the other) have been made over ownership or tolls.

While the Severn Bridges and the tolls may be out or sight and out of mind to Westminster ministers - perhaps as our interests and our county are peripheral to the Westminster mindset – that does not help us very much. This sorry state of affairs may be a result of abandoning future planning to the ‘free market’ if nothing else it is a clear indication that the concept of forward planning and taking the long view no longer fits  into the Westminster worldview.  Differences of opinion between Wales and Westminster are not new, what makes this latest spat more ironic is that the Welsh Conservatives have nailed their colours to the mast by calling for control of the Severn Bridges to reside in the hands of the Welsh people.

Last year a report for the Welsh government suggestedthat abolishing the tolls would increase traffic by an estimated 12% - equivalent to about 11,000 vehicles a day – and that businesses and commuters forked out around £ 80 million pounds a year crossing the Severn bridges. Studies into the impact of the Severn Bridge Tolls on our economy are nothing new. Back in October 2010, Professor Peter Midmore's independent economicstudy of the Severn Bridge tolls which has recommended that the revenues should stay in Wales, once the crossings revert to public hands. 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, this compared with 18% in the Greater Bristol area.

While noting that the economic impact was not substantial for most, the 2010 study found that transport; construction and tourism-related companies reliant on regular crossings suffered increased costs and reduced competitiveness. 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. Under the current stitch up (sorry set-up), once the cost of the Second Severn Crossing is paid off less on-going maintenance costs (possibly by 2018) then that handy revenue stream will revert to Treasury coffers in Westminster. 

BOUND TO HAPPEN SOONER OR LATER...

The Conservatives in Wales have finally joined calls for the Welsh government to be handed control over the Severn bridges, only to find that a Conservative minister in the Con Dem Coalition government is opposing any such idea. The Conservatives in the Senedd have proposed cutting the bridge tolls and using the proceeds to spend on infrastructure. So we have elected representatives from the same party in opposition to each other over an issue of importance to the Welsh people and our economy. Nothing new here, Labour in Wales was often at loggerheads with Labour in Westminster, putting party (and self) interest before the interests of Wales.

The Second Severn Bridge

Now when it comes to transferring the Severn Bridges (and their income) to Wales, this is also not a new idea. Back in October 2010 Professor Peter Midmore produced an independent economic study of the Severn Bridge tolls which recommended that the revenues should stay in Wales, once the crossings revert to public hands. The Welsh Affairs Select Committee back in December 2010 recommended that the bridge tolls be cut once the concession ends.

At the moment both of the Severn Bridges are run by a private company (Severn Crossings PLC) and the Welsh government (in a report published in November 2012) wants to take control of the Severn Bridges when they return to public ownership. The bridge concession when it ends in 2018 will have brought in some £996 million pounds (based on 1989 prices). At the moment it costs £6.20 to take a car over the M4 and M48 bridges from England to Wales, with driving into England being free. Vans and minibuses cost £12.40 and for Lorries and coaches £18.60. Businesses and commuters currently fork out around £80 million pounds a year to cross the bridges.

Yet, Westminster, no doubt with an eye on useful income stream has said that the Severn Bridges when the concession finally comes to an end won’t be transferred to Wales and also that the tolls may not get cut either. Interestingly enough, the Humber Bridge continues to receive a subsidy, but, no such luck for the Severn Bridges and their hard pressed commuters. Perhaps the party formerly known as New Labour and the current Con Dem Government in Westminster hoped that here in Wales – out of sight and out of mind (at least from a Westminster perspective) - we would not notice the ongoing subsidy.

Plaid has long called for control, or shared control, over the bridge to be devolved to the Welsh government and for negotiations to start immediately to ensure that the transfer is in place by 2018. The Party, committed to reducing the tolls on the Severn Bridges to under £2 per car, recognises that the high cost of the tolls impacts on commuters and businesses (especially freight and logistics) and on people visiting Wales. The bridges are of such importance that it is only fair that control, or at least shared control, over them is in the hands of the Welsh people.

AND SPEAKING OF BRIDGE TOLLS

No it's not the Severn Bridge!

Towards the end of February, a few Westminster MP’s gathered to back a private members bill which aimed to allow hospital patients free travel (to and from treatment) across a toll bridge across a wide river estuary (it was the Humber Bridge, not the Severn bridge(s)). Patients in northern Lincolnshire have no choice other than to use the Humber Bridge to access medical treatment at hospitals in Hull and East Yorkshire. The Bridge tolls were cut by half in April 2012 by a Westminster Government subsidy, falling from £3 each way for cars to £1.50 per crossing (interesting that a Conservative dominated coalition government can do this for a toll bridge in England but is quite unprepared to even consider attempting to reduce tools on the Severn bridges. Despite the reduction in tolls, local campaigners say cancer sufferers who need regular chemotherapy and radiotherapy sessions are continually being hit by the £3 return toll charge. The proposed private members bill would give the Humber Bridge Board greater financial freedom and may potentially pave the way for toll-free crossings for hospital patients. A bill was introduced to parliament in January, its passage was however delayed after the Tory MP and former Transport Minister Christopher Chope (Christchurch, Dorset) raised an objection in the House of Commons. The Humber Bridge which was opened to traffic in 1981, has often been at the centre of political controversy over the rising cost of tolls, something that has been blamed on the legacy of spiralling debt from its construction. The Humber Bridge Bill has reached the second reading stage in the House of Commons and will to pass through the various stages of parliament over the next six months. So what exactly are those MP's from the South East doing with their time?

THEY NEVER EVEN ASKED?

The news that the Labour in Wales government in Cardiff never even asked the Westminster Government about the Severn Bridge tolls should not really surprise anyone and will bring no comfort to Motorists travelling from England to Wales on the Severn bridges who (as of 01.01.2013) now pay £6.20 – up from £6 from 2012. The cost for vans and minibuses travelling west rose from £12.10 to £12.40 (2.5%), and from £18.10 to £18.60 (2.8%) for lorries and coaches.

Plaid Cymru submitted a Freedom of Information request to the Department of Transport seeking details of any correspondence between it and the Welsh Government on the level of tolls since May 2011, the last Assembly elections. In its response the Department of Transport merely listed emails between the Highways Agency and the Welsh Government advising of planned increases in tolls for 2012 and 2013. The FOI request revealed that there was no other correspondence between the Welsh Government and the Westminster Government – so much for standing up for Wales!

Plaid Cymru Transport spokesperson Jonathan Edwards MP said: “The lack of complaints over the continued rise of the Severn Bridges tolls once again shows that the Welsh Government are crying crocodile tears when they complain about motorists’ rising costs.

“The tolls rise annually according to RPI inflation index under an Act of Parliament from 1992. This is higher than the CPI inflation which has now become the norm for inflation, such as pensions upratings – so it is not even the fairest form of inflation.

“While the UK Government have been happy to rip up parliamentary acts for S4C that operated on the same inflation increase basis, they aren’t willing to touch the Severn Bridges – and the Welsh Government haven’t even asked them to consider it.

“Other companies and investments have been forced to take the economic situation into account in recent years and many will tell you about the problems that the tolls cause them.

"But for south Wales motorists the tolls keep rising. I’m sure that neither the UK or Welsh Government have even considered entering into discussion with the private company who owns them to lower the tolls during these tough times.

"In a few years, though, the cost of the Severn Bridges’ construction will have been repaid and the bridges will come back into public ownership.

"Major decisions will have to be made about the Bridges’ future ownership – by the Welsh Government, the UK Government or some form of joint ownership and, depending on who holds the purse strings, the amount that motorists will pay in tolls in future.

"It is vital that the Welsh Government take a more proactive stance in supporting the Welsh economy."

A HAPPY NEW YEAR (NOT)!

No end in sight for Tolls!

The UK (Westminster) Government has announced (via a written answer in Westminster) that commuters and drivers using the Severn Crossings will get hit by an inflation-busting toll rise of 3.3%. From January 1st cars crossing the Severn bridges on the M4 and M48 crossings will pay £6.20 – up from £6 this year. Stephen Hammond, the Con Dem Transport minister also revealed that the charge for vans and minibuses crossing the bridges will rise from £12.10 to £12.40 (2.5%) and from £18.10 to £18.60 (2.8%) for lorries and coaches.

The new toll levels will be confirmed in an order made by the Secretary of State in December While the Westminster Government has been happy to subsidize the Humber Bridge, which had its tolls reduced by 50% nothing has been done to reduce the impact of tolls on commuters, motorists and small to medium sized businesses based in Wales. Whether we have a New Labour or a Conservative run Government it should be pretty clear that Wales or Welsh interests are unimportant.

Barely a year ago, a major cross-party report revealed that the Severn Crossings had a yearly income of £72 million pounds but running costs of just £15 million pounds. The Welsh Affairs committee recommended that with tolls as low as £1.50 for the bridge to be self-financing.  Meanwhile in Scotland, tolls on the Skye Bridge and the Forth Road Bridge have all been scrapped.

The new toll increase have been revealed less than a fortnight after Labour in Wales First Minister Carwyn Jones demanded talks to transfer control over the Severn Bridge tolls to the Welsh Government. The UK Government ignored the First Minister and publically stated that there would be no change to ownership agreements which will see control of the bridges and the lucrative income from the Severn crossings go back into UK Treasury. News that the First Minister has half an eye on the income from the tolls which might be used to improve the M4 (and maintain the crossings) will bring no comfort to commuters and businesses as it suggests that there will be no end to the tolls.

THANKS FOR NOTHING...

A report (produced by Arup - engineering consultants) on behalf of the Welsh Government has suggested that ditching the bridge tolls on the Severn Crossings could boost the economy of south Wales by £107 million. The report suggests that the removal of the tools could boost traffic flow by around an extra 11,000 vehicles driving over the two bridges every day. The Arup report says that businesses and consumers pay out around £ 80 million pounds a year to cross the Severn bridges.

The report looked at what would happen if the tolls were halved, increased by 50% or scrapped entirely. The total revenue brought in 2009 was £77.4 million pounds. A reduction in revenue if the toll was cut by around half (46%) could be around £36 million pounds a year (based on 2009 prices). An increase in the toll by around half (41%) would bring in an extra revenue of around another £36 million pounds per year. Either way any projected change in revenue (on paper) comes in is less than proportional to the change in toll because of either higher or lower traffic flows.

The tolls have been used to pay for their construction of the new bridge, and the maintenance and operation of both the old and the new bridge(s) via a concession agreement with Severn Crossings Plc.

The concession agreement currently in place ends at the point that the operator has raked in around £996 million pounds at 1989 prices (so we are talking about probably well over a cool £100 million pounds by 2018). The tolls are due to end in 2018 when the bridges will revert back to the UK Government.

Back in October (29012) the UK transport minister Stephen Hammond revealed that the government has substantial debts on the bridges which would to be repaid so the tolls would not cease to be collected.  Currently both the Severn Bridges are run by a private company, the concession agreement is due to run its course in 2018, at which point the bridges will return to government ownership. It had been suggested that once that concession agreement ran out, the bridge tolls might have dropped to around £1.50.

This, however, now appears not to be the case, the House of Commons Welsh Affairs Select Committee, was told that there would be no drop bridge tolls when the concession ends. Even though the bridges would come back into public ownership there were apparently "substantial government debts that needs to be repaid" from building and maintaining the river crossings amounting to around several hundred million pounds.

The Welsh Affairs Select Committee was told that the government has a deficit of at least £112 million left on the bridges covering items such as maintenance costs and the costs of "professional advice". The Department for Transport has stated that once the concessions ends the government will need to repay its own debts resulting from the building and maintenance of the bridges, and so tolls will continue after 2018.

Meanwhile the Labour in Wales First Minister Carwyn Jones has stated that control of the bridges should be transferred from the UK government to the Welsh government in 2018, he has so far refused to state say what a Welsh Government would do to the tolls. The Severn Crossings which are the main way in and out of South Wales carry an average daily traffic of about 80,000 vehicles. Bridge Tolls have been in place ever since the first Severn Bridge was constructed.

So there appears to be little chance that hard pressed commuters will see and end in sight to the tolls, whether they remain under the control of the Department of Transport (in London) or the Welsh Government (in Cardiff) – no doubt both potential inheritors of the tolls don’t want this cash cow to be put out to pasture.  So whether it looks like it will be one of our governments continuing to fleece us  and continue to the ramp up fat profits at our expense for the foreseeable future (after 2018). Thanks for nothing...

THE END IN SIGHT?

The second Severn Bridge

The Highways Agency has done a deal with Severn Crossings PLC which means that they will rake at least another £33 million pounds worth of bridge tolls before the concession finally comes to an end in 2017. On the basis of current annual toll income this deal will allow the company to operate the bridges for an additional five months. Plaid is firmly opposed to any extension to the contract for the Severn Crossings with the private company and wants to see the contract ended at the earliest opportunity followed by a significant reduction or removal of tolls on the Severn Bridges. The high cost of the tolls is a matter of real concern for the people of Wales because the tolls impact on businesses, freight and logistics, on commuters and on tourism and are a tax on jobs and businesses.

MAGIC NUMBERS

One unanticipated side effect of the recession is that the tolls on the two Severn bridges may continue to have to be paid for almost a year longer than planned due to combination of excessively high fuel prices and the economic downturn which means that less traffic crossing the Severn bridges. The Severn Bridge tolls, rise by inflation every year, something that appears to be set in stone by the exceptionally poorly worded or ill-thought out legislation passed by John Major’s Conservative government some 20 years ago which allowed a private company to construct the new crossing and to manage the original crossing.

This fix only comes to an end when Severn River Crossings Plc, has collected a set target total income from toll charges. The UK Government In 2005) calculated that this target would be reached in late 2016. The reduction in bridge traffic means however, that the target figure won’t probably be reached until the autumn of 2017. Welsh Government figures, part of the consultation on motorway capacity, show that traffic on the busiest section of the M4 (near Newport) began to drop off in 2005 as oil / fuel prices began to rise due to oil shortages.

It is surely no coincidence that amount of rail freight containers moved by rail into South Wales doubled last year, and in February, Tesco launched a rail service carrying supermarket products to its Wentlooge distribution depot near Cardiff, something that will replace around 22,000 lorry trips per year. If we are serious about cutting carbon emissions and congestion then we need to get heavy goods back onto our railways. This won’t be a quick fix and it may not be cheap but it can be done if the political will is there, as has happened in Scotland, where there is a useful combination of the will, the funding and interested private partners.

For some time now Plaid has wanted to see the transfer of powers (to Wales) so that tolls on the bridges can be reduced, this would have a considerable impact on Welsh businesses and our 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.

Back in October 2010, an independent economic study of the Severn Bridge tolls, by Professor Peter Midmore, recommended that the revenues should stay in Wales, once the crossings revert to public hands. It noted that Welsh businesses are unfairly penalised by the tolls and that the money should be shared with the Assembly Government and used to improve Wales’ roads and public transport. 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.

Let’s be honest the day when the Severn Bridges come back into public ownership and the day the tolls are reduced cannot come quick enough. In the meantime, there may be a few other things that would be worth examining. In 2011, the Welsh Affairs Committee chair David Davies, Conservative 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." More recently, Alun Cairns, Conservative MP for Vale of Glamorgan, said that amending the legislation wasn’t an option and that “Sadly, we’ve got to live with it between now and the end of the concession.”

Personally I have often thought that if there is a pressing problem then you find away to fix it rather than wait around for it to go away. I have also wondered whether it would be worth enquiring as to how come the Act was so badly written? And also 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?

SECOND CLASS CITIZENS?

On January 1st tolls for cars on the Severn bridges rose to £6, vans and small buses now pay £12.10 and heavy goods vehicles and coaches now pay £18.10. This is an effective and very lucrative private tax on jobs and business which impacts on both sides of the estuary. This side of the water, New Labour’s Westminster sheep persistently bleated (between 1997 and 2010) that nothing could be done to stabilise the tolls! Yet the last New Labour Government happily intervened in October 2009 in relation to the Humber Bridge. The Humber Bridge tolls (each way) are set at £3 for cars and up to £20.30 for an articulated lorries. The current Con Dem chancellor has publicly stated that he will write down the outstanding debt on the Humber crossing by £150m which would cuts the tolls by half. Here in Wales, all we get is a pledge to work with the Welsh (‘Labour in waiting mode’) government to improve the M4 in south east Wales - which will do little to reduce or stabilise the Severn Bridge tolls. Do you ever get the feeling that we are second class citizens of this union?

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?

HANG ON A MOMENT...DID HE JUST SAY?

I was reading a piece in the Western Mail (20th May 2011) on the Severn Bridge and the fact that the Welsh Affairs committee had received no hint or suggestion that tolls will fall on the Severn Crossing when it enters public ownership. Knowing the Tories this should come as no surprise although the Welsh Affairs Select Committee (currently chaired by the Monmouth MP David Davies) had recommended that recommended (back in 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 perhaps 2018).

It's no secret that Plaid would like to see the transfer of powers in order to reduce the tolls on the bridges, which are currently £5.70 per car, £11.50 per van and £17.20 per lorry and have a considerable impact on Welsh businesses and the Welsh economy. Back in October 2010, Professor Peter Midmore's independent economic study of the Severn Bridge tolls recommended that the revenues should stay in Wales, once the crossings revert to public hands. The Professor's 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.

Under the current set-up, once the cost of the Second Severn Crossing is paid off (by 2016 or 2017) 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 suffered increased costs and reduced competitiveness.

The bridges are of such vital importance to Wales it is only right that control, or at least shared control, over them is in the hands of the Welsh people. With control over the bridges devolved, Plaid suggests 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 will be used to maintain the bridges and upgrade Welsh infrastructure.

The bridge tolls are literally an extra tax on jobs, on Welsh people going to work and on business in the south of Wales. The Western Mail story also drew attention to the fact that forthcoming work on the inside lane on both eastbound and westbound will be carried out this summer. Work on the eastbound carriageway is due to take place between June 9th and July 14th. Resurfacing will be carried out on the westbound route between September 6th and October 11th. I was thinking yet more joy for bridge users, when I caught sight of the following:

Philip Hammond, the Transport Minister, said he could not give any indication that the toll would reduce, but he did say it may no longer be feasible to only pay in just one direction.


He said: “The amount of truck drivers that tell me they go in one way and go out another purely based on the toll tells me that from the Treasury's point of view an income is being lost an in another way is an unfairness that could be addressed as we go forward.”

                                                                                                                    Western Mail (20.05.2011) 

Hang on a moment, does that mean what I think it means, in that they are now seriously thinking about charging both ways across both the bridges?

SEVERN BRIDGE TOLLS

Plaid Cymru has stated that it would significantly reduce tolls on the Severn crossings once in Government. Plaid would initiate discussions immediately for a transfer of powers in order to reduce the tolls on the bridges, which are currently £5.70 per car, £11.50 per van and £17.20 per lorry and have a considerable impact on Welsh businesses and the Welsh economy.

Back in October 2010, Professor Peter Midmore's independent economic study of the Severn Bridge tolls recommended that the revenues should stay in Wales, once the crossings revert to public hands. The Professor's 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.

Under the current set-up, once the cost of the Second Severn Crossing is paid off (by 2016 or 2017) 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 suffered increased costs and reduced competitiveness.

A Plaid Cymru government would view it as essential that control, or at least shared control, over the operation of the bridge be devolved to the Welsh government at the earliest opportunity in order to ensure that action could be taken to significantly reduce the tolls. And would use any money raised by the tolls for maintenance of the bridges and the upgrading of Welsh infrastructure and not for private profit.

At the moment the operation of the bridge is in the hands of a private company (Severn River Crossing PLC) with the contract likely to end in 2017 at which point the bridge will revert to the Department for Transport in London. The private company that runs the Severn Toll Bridges managed to raise around 226m over the three years (up to June 2010) yet barely spent £15m on essential maintenance on the original crossing's damaged cables.

That the bridge tolls have been used used as little more than a cash cow, to fleece bridge user should come as not much of a surprise to many people.The bridge tolls have become in recent years an effective a tax on jobs, a tax on commuters, a tax on growth and tax on business in the south of Wales.

Plaid Cymru argues that control, or shared control, over the bridge should be devolved to the Welsh government and that negotiations to this end should start immediately to ensure that the transfer is in place by 2017. And Plaid is committed to significantly reducing the tolls on the Severn Bridges to under £2 per car and recognises that the high cost of the tolls is a serious matter of concern for the people of Wales because of the impact it has on Welsh businesses, particularly those in freight and logistics, and on people visiting Wales.

The bridges are of such vital importance to Wales it is only right that control, or at least shared control, over them is in the hands of the Welsh people. A Plaid Cymru government would immediately initiate discussions to bring about the devolution of control, or shared control, over the bridges to the Wales.

With control over the bridges, Plaid would significantly reduce 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 will be used to maintain the bridges and upgrade Welsh infrastructure.

SEVERN BRIDGE TOLLS

I welcome the Westminster Welsh Affairs Committee recommendation that the Severn Bridge Tolls should be slashed on the Severn Crossings to as little as £1.50, once they revert to public ownership. This proposed reduction to little less than a fifth of current tolls has been suggested by the Welsh Affairs Committee from 2017 and it wants the toll cut "at the earliest opportunity".

The Committee and many other organisation and people see the tolls, which are due to rise for cars on the M4 and M48 to £5.70 as of 1st January 2011 as a barrier to business, a tax on jobs and tax on commuters. The old Severn Bridge was opened in 1966, with the £300m second Severn crossing being opened some 30 years later. The MPs noted that the bridges cost some £15m a year to run and maintain but raise some £72m in revenue.

Back in October 2010 Professor Peter Midmore's independent economic study of the Severn Bridge tolls recommended that the revenues should stay in Wales, once the crossings revert to public hands. The Professor's 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. Under the current stitch up (sorry set-up), once the cost of the Second Severn Crossing is paid off (by 2014 or 2016) the revenue stream will revert straight to Treasury coffers in Westminster.

The study of 122 businesses commissioned by the Federation of Small Businesses also found that 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 suffered increased costs and reduced competitiveness.

As of January 1st 2011, the tolls on Severn Bridges, will rise:

The toll for Cars and vehicles with up to nine seats will rise from £5.50 to £5.70

The toll for Minibuses up to 17 seats and goods vehicles up to 3,500kg will rise from £10.90 to £11.50

And the tolls for Buses and coaches with 18 seats or more and lorries above 3,500kg will rise from £16.40 to £17.20

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SEVERN CROSSINGS REPORT

• Introduction of an "essential" contemporary payment method
• Reduce the cost of the toll when the government takes ownership 
• Implement "free-flow technology" as soon as possible
• Concessions for those who depend on the crossings for their livelihood could be introduced
• UK government should take responsibility for the "failure" of civil servants 20 years ago to future-proof legislation which determines toll fees
• Government learns from the "inflexibility" of the Severn Bridges Act 1992 when agreeing future contracts
• Government "must develop urgently" a future strategy for the crossings

Source: The Severn Crossings Toll - Commons Welsh Affairs committee

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Whilst the day when the Severn Bridges come back into public ownership cannot come quick enough along with the recommendation that the tolls be cut, there are a few other things that would be worth examining. 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." It might well be worth inquiring how come the Act was so badly written, and whether or not anyone directly benefited financially by ending up with a seat on the board or with contributions to Party funds? Just a thought?

TIME TO ASK THE QUESTION?

Last week the Westminster Welsh Affairs Committee heard that most of the £77m tolls (which cost £15m a year to run and maintain, but generate a net revenue of £77m a year at today's prices) raised per year is currently being used to cover debts and that only maintenance and running costs would need to be covered after 2017. A potential big hint to the Committee that Severn Crossing tolls could be much cheaper once the concession to run them ends in 2017.

It was even suggested that tolls could fall to 20 to 30% of current levels. At the moment motorists fork out £5.50 for cars and up to £16.40 for HGVs. Just for the record since the Severn Crossing Plc took over the concession, they have spent £510m (1990 prices) between serving a debt on the existing crossing and building a new one. Over the period of the concession it is expected that the concession holders will raise £1bn in revenue (1989 prices).

The bridge tolls have become in a tax on jobs, a tax on commuters, a tax on growth and a tax on business in the south of Wales. Plaid Cymru's South Wales Central AM Chris Franks (back in June 2010) obtained figures under the Freedom of Information Act, which showed significant difference between the large amounts of money raised by Severn River Crossing plc from the toll, and the relatively small amount spent on treating the damage to the cables on the old crossing (M48).

Since 2006, some £15m has been spent on main cable work on the first Severn Crossing. The Highways Agency suggests that another £5.8m of repairs will take place over the next five years. Some £225,733,000 has been collected in bridge toll revenue since 2006. People may driven to wonder if they are going to get saddled with major work to maintain the bridges after the toll profits have been siphoned off by the concessionary company when the bridges are finally returned to public ownership in 2017.

Sadly just because something could happen does not mean that it will - I cannot for a moment imagine a Westminster Government forgoing this potential tidy little earner. One question that is yet to be answered is come 2017 who actually is going to own the bridge (or bridges)? The situation is potentially complex as the bridge (or bridges) sit on the border - with the toll on the newer bridge being collected in Wales, and the toll on the older bridge being collected in England. Will the bridge and the tolls simply revert back to the Department of transport?

Or does the National Assembly get a look in, by default? If the current tolls were halved then, what could be accomplished by using a percentage to cover maintenance of the bridge and using the remainder of the toll for ring fenced capital projects – such as new integrated transport systems, reopening railway lines, funding tram systems and investing in rail freight? This would be far more beneficial for all of us in Wales than the finance disappearing into the Westminster coffers or to bail out the bankers?