BETTER BUT NOT GOOD ENOUGH

I welcome the planned reductions in the Severn bridge tolls announced in the budget. The Severn bridge tolls are a current significant financial burden for many businesses, commuters and motorists and will remain so after 2018. The tolls can impact on where people choose to locate and do business, Plaid Cymru has repeatedly said that the ultimate goal should be to scrap the Severn bridge tolls altogether.

In government, Plaid would work to achieve this aim, beginning with a reduction to a fee that would cover maintenance costs only. The Party of Wales is committed to removing all obstacles, which are holding back the Welsh economy. The Severn bridges are of strategic importance and it is vital that they operate in a manner, which helps rather than hinders Wales's economic development.

Westminster still needs not just to come clean on the future of the Severn Bridge tolls, which are a tax on commuters, business and jobs. I have long stated that the National Assembly should have control of the Severn Bridges, it should also be directly involved in any discussions about the future of the Severn Bridge tolls as well, as the record continues to shows that successive Westminster governments remain largely indifferent to Welsh interests.

I remain seriously concerned that the Department for Transport may find even the reduced tolls far too useful as a source of income to simply to either eliminate or to hand over to the control of the National Assembly in Cardiff. Based of the fact that relatively recent Labour Governments in Westminster with significant majorities and various shades of Conservative `(and Liberal Democrat) Governments between 1997 and 2015 did practically nothing to relieve the burden of the bridge tolls.

One thing remains clear, the fact that successive Westminster governments have failed to act in a timely manner when Wales or Welsh interests have been raised in the past. The future reduction in tolls is nice but it is frankly not good enough. At present the long-term future of the tolls still remains unclear – save for the fact that as far as we know Westminster has no plan to remove them. 

A WAKE UP CALL?

The announcement that there will be lane closures on the old Severn Bridge until the autumn should be a wake up call to the bridges long-term future. The old Severn Bridge opened in 1966 and is nearly 50 years old - it won't be around forever. At this moment in time I cannot envisage any Westminster government or even a government in Cardiff Bay agreeing or funding a replacement bridge. The closure of the old Severn Bridge will directly impact on commuters and businesses in south east Monmouthshire, the Wye Valley, the Forest of Dean and south west Gloucestershire who use the old bridge to travel to and from work and to trade. 

If there is not be another Severn Crossing to replace the original Severn Crossing then we will be back to having only one Severn crossing. Changes will then need to made to the existing M48 / M4 including an M48 junction for Caldicot and a direct feed into the eastbound M4 this side of the current Second Severn crossing. This would replace the current arrangement whereby current users of the M48 have to use the existing Magor M4 junction to join the M4 eastbound to cross the second Severn Bridge and the same junction to gain return access to the M48. 

A possible solution to this potential transport bottleneck may be the construction of a joint road and rail bridge across the Severn, near Lydney. This bridge could provide a partial solution to the chronic traffic congestion in Chepstow and also provide a much-needed shorter more direct rail route to the east as well as dealing with as yet unaddressed problem of the ageing Severn Tunnel.  This solution is wholly in England it would provide a more accessible route to Bristol and the M5/M4 to commuters and businesses based in south east Wales - it would also in my opinion stand a much better chance of being funded by an increasing Anglo-centric Westminster parliament.

Westminster needs not just to come clean on both the future of the Severn Bridge tolls, which are a tax on commuters, business and jobs. Plaid Cymru is committed to cutting the bridge tolls initially to £2 pounds. Westminster also needs to entirely open up about the medium to long-term future of the old Severn Bridge and any replacement bridge. I have long stated that the National Assembly should have control of the Severn Bridges, it should also be directly involved in any discussions about the future of the old Severn Bridge as well, as the record shows that successive Westminster governments have consistently failed to protect our interests.

FLEECED FOR CHRISTMAS!

The January 2016 increase makes the Severn Bridge toll one of the most expensive per kilometre; this hinders economic growth and punishes commuters, businesses and visitors. The tolls are quite simply a tax on jobs, a tax on businesses and a tax on commuters. 

In 1966, it cost 12p per car to cross the bridge (around £2 pound in today’s money) it now costs £6.60 per car. The concession holders have been fleecing us for as much as they can get for as long as they can with little but warm words from Westminster to restrain or regulate them. On the matter of the Severn Bridge tolls over the years Westminster has simply failed.

We used to hope that the tolls would eventually be removed, possibly when the concession came to an end  - currently the franchise should end in 2018. However, in December 2014, the UK Government admitted that the tolls could be maintained for potentially for another NINE years (potentially until 2027) to recoup its costs on the Severn Bridge crossings after they return to public ownership, according to information obtained by Plaid Cymru.

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 has 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.

http://wales.gov.uk/about/aboutresearch/econoresearch/completed/severntolls/?lang=en

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.

Severn Bridge Tolls since 1976

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.

The general political consensus to do something about the tolls is nice but somewhat vague on the details. Based on their record in at Westminster I would not hold my breath in anticipation of any action on the Severn Bridge tolls. Labour (New and not so New) in power at Westminster from 1997 to 2010 did nothing. The Conservative and Liberal Democratic Coalition when in power at Westminster from 2010 to 2015 did nothing. Likewise the now unrestrained Conservative Party currently in power at Westminster will also probably do nothing

In 2018 the franchise will revert back to Westminster and the Department for Transport - what concerns me is that this income may prove too useful to let go. The ominous silence from the Westminster on the fate of the tolls should concern to us all of us. I think that it is perfectly reasonable for the Department For Transport (and the Westminster Government) to clearly state what it intentions in relation to the Severn Bridge tolls.

Plaid Cymru wants the transfer of powers (to Wales) and the tolls initially reduced to £2, something that could have a considerable impact on businesses and the economy. For simple clarity the ownership of the Severn bridges should be transferred to the National Assembly in 2018, and that decision needs to be made sooner rather than later and preparations for the transfer need to begin as soon as possible.

THE SEVERN BRIDGE TOLLS

It would be nice if the Severn Bridge tolls could scraped, as have all the bridge tolls in Scotland. The problem is not that the bridges span (mostly)  a border that lies between two administrative areas - handing control of both bridges to the National Assembly in 2018 could easily solve that problem. 

The real problem that hard pressed commuters face is that the Department for Transport is already (no doubt) looking at any toll revenues and thinking of milking the bridge tolls for all that it can squeeze out of them (less maintenance costs). The lack of a direct rail connection between the Ebbw valley and Newport also means that most (potential commuters to Bristol and beyond) have little choice but to drive to work. 

This oversight (if it can be called that) may reflect successive Welsh Governments ignoring the economic realities that drive a significant number of Welsh residents to make the long daily commute across the Severn Bridges. The day the tolls are significantly reduced or removed cannot come soon enough.

UNRELIABLE AND UNTRUSTWORTHY

The news that the Westminster Government has up to another nine years to recover its costs on the Severn Bridge crossings after they return to public ownership in 2018 is not good news. This news was revealed the day before tolls went up on the Severn Bridge with car drivers now paying £6.50 up 10p while heavy goods vehicle and bus drivers having to pay £19.60, up 40p not to mention the rises for small goods vehicles and small buses. The current toll levels would enable costs to be recovered in between one or two years but at the moment Westminster is deliberately keeping its intentions in relation to the rate and length of the tolls after they revert to public ownership hidden. The Westminster Government needs to come clean on its plans for the tolls after 2018 and whether it intends to keep collecting the tolls beyond 2027.

NOTHING QUITE LIKE IT…

It’s nice to see that finally there is a degree of consensus, in relation to the problem of the Severn bridge tolls, even if it took a while to develop. With the Lib Dem’s potentially facing electoral obliteration their pledge to abolish the Severn Bridge tolls should still be welcomed. Their record in Government curbing some of the baser Thatcherite urges of the Conservatives (or not) will I am sure come in for much scrutiny in the countdown to Poling day.

An unsubsidised toll bridge near us...

When it comes to the much-disliked Severn Bridge tolls, the often ignored literal elephant in the room is the subsidy that is regularly applied to the Humber Bridge. Samuel Johnson said amongst other things that there is nothing quite like the prospect of being hanged focuses the mind wonderfully. Perhaps the prospect of being hung out to dry electorally has prompted this sudden interest in the Severn Bridge Tolls and their impact on our economy and hard pressed commuters.

When last in office at Westminster, the party formerly known as New Labour chose to quietly (and regularly) subsidise the Humber Bridge tolls, yet, it made no move what so ever towards doing anything about dealing with the tax on jobs, businesses and commuters which are passed off as the Severn bridge tolls. This may go some way to explaining at least to some degree why our local Labour MP’s do little beyond trotting out the same old tired press releases bemoaning the failure of the Government to do anything about the tolls.

What’s Interesting is that the Humber Bridge subsidy has been continued by the Con Dem Coalition Government.  This is odd to say the least as this is one of the most ideologically driven governments that we have seen in recent years, having driven the post Thatcherite ‘free market’ ideology into wholly new areas.

Yet, this coalition government has shown no inclination to curb the Humber Bridge state subsidy or offer to help Welsh commuters and businesses out with a simular subsidy. It is worth noting that while in Government, the Lib Dem half of this largely Conservative coalition Government has also shown until now no inclination towards curbing the Severn Bridge Tolls, mitigating their impact or pretty much anything else in relation to the tolls. 

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."

CUT SEVERN BRIDGE TOLL TO £2

A Plaid Cymru government would begin working now to significantly reduce tolls on the Severn Bridges and to make the statement that Wales is open for business for companies from over the border, said the party’s Shadow Minister for Transport. Rhodri Glyn Thomas has called on the Welsh Government to make the case for responsibility for the bridge to be devolved so that Wales can benefit from it.

Ownership of the bridge will be passed to the Department for Transport when the private company which owns it pays back its debt, which is likely to happen in 2018.

Rhodri Glyn Thomas said that a £2 toll for using the bridge will cover maintenance costs for the bridge. Running costs for the Severn Bridge amount to £15 million a year. Currently, consumers and businesses pay in excess of £72 million every year to cross the bridge.

Party of Wales Shadow Minister for Transport, Rhodri Glyn Thomas said:

“Plaid Cymru has always said that lowering the Severn Bridge tolls would bring huge benefits for the Welsh economy. In 2011 it was our manifesto commitment to reduce the tolls and a Plaid Cymru government would be making the case for that now.

“When the private company relinquishes its ownership of the bridge in 2018, the Welsh Government needs to be ready to step in for the benefit of the people of Wales.

“People travelling home to see their families over Christmas will be charged £6 and businesses with lorries will have to may so much more, and this goes against everything the Welsh Government should be doing to improve the Welsh economy.

“Cutting the toll to cover maintenance would save millions for consumers and businesses and would cost the Welsh Government nothing. The UK Government needs to commit to giving the democratically elected Welsh Assembly control over the bridges so that Plaid Cymru’s economic policy can be implemented in the interest of the people of Wales.”

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.

TIME TO THINK DIFFERENT THOUGHTS

Wales is littered with the remnants of failed models of economic development, most of them have failed to deliver any long term economic benefits and more than a few long term jobs to our people and our communities. We desperately need some fresh economic thinking, we need to think differently and to find economic models that can deliver sustainable long term jobs that can deliver real and lasting material benefits to our communities and our country.

The Mondragon co-operative which is a collective of around 250 companies and organisations based in the Basque Country may be one of those economic success stories in recession-hit Spain. Mondragon, which may be the world's largest worker co-operative, is helping the Basque economy try to resist the worst ravages of the recession in Spain. Mondragon which was established in 1956, in the province of Gipuzkoa; employs around 83,569 people with a business philosophy built around co-operation, participation, social responsibility and innovation.

Jobs with Mondragon

The Cooperative competes on international markets using democratic methods within its business organisation, helps to create jobs, and is committed to the human and professional development of its workers and pledges to development with its social environment. The unemployment rate in the Basque Country is 15%, and lower in the province of Gipuzkoa, (where Mondragon is based), the unemployment rate in Spain as a whole is now 25%. We in Wales could learn a great deals from the example Mondragon and its methods when it comes generating and retaining sustainable jobs.

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.

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?