Showing posts with label M48. Show all posts
Showing posts with label M48. Show all posts

Friday, 23 November 2012

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.

Friday, 19 October 2012

WHY DID THEY BOTHER?

The news that the Severn Bridge tolls are unlikely to drop once the vital crossings come into public ownership does not surprise me very much. The  UK transport minister Stephen Hammond stated that the government has substantial debts on the bridges that need to be repaid.  Both the Severn Bridges are run by a private company, the concession agreement is due to run it 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.

Sadly this 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. It is enough to make you wonder after the best part of twenty five years of a private company fleecing the people of south Wales and ramping up fat profits at our expense why the bridges were ever privatised in the first place?

Back in June 2010 a Plaid Freedom of Information request revealed the significant difference between the large amounts of money raised by Severn River Crossing plc from the toll, and the relatively small amount being spent on treating the damage to the cables on the old crossing. The FOI request revealed that (since 2006) some £15 million has been spent on main cable work on the first Severn Crossing (the M48 bridge).

The Highways Agency (back in 2011) revealed that another £5.8 million's worth of maintenance will take place over the next five years.  This was despite the fact that some £225,733,000 has been collected in bridge toll revenue since 2006. Back in October 2011 I speculated on whether we were going to get saddled with major work to maintain the bridges while the toll profits were being siphoned off by the concession holding company after the bridges are finally returned to public ownership (then in 2014 or 2016) now 2018. Depressingly the answer is Yes...

Saturday, 18 September 2010

BETTER LATE? OR BETTER NEVER?

The news that the Severn bridges will now accept payments via debit and credit cards before the Ryder Cup is welcome news, even if it is only a temporary measure until a more permanent solution is found. Whatever the nature or duration of this quick fix the problem of the tolls on the Severn bridges remains ongoing - basically they can be considered as a tax on jobs, a tax on commuters and tax on anyone or any organisation that does business back and forth across the bridges.

The news that the Welsh affairs committee is in October set to examine the future of the bridges after the crossings have reverted to public ownership should also be welcomed. At the moment the concessions are operated by a private company, the Severn Bridge will return to government ownership when the firm has collected a fixed sum of money from tolls.

The committee plans to look at how tolls on the bridges affect the Welsh economy, the amount of cash that is spent on maintaining the bridges, their future when they return to public ownership and at the level of the tolls, payment methods, the impact of the tolls on tourism and the condition of the bridges.

It's good to see that some of our local New Labour MPs are fully behind this enquiry, which is what you would expect - Jessica Morden, MP for Newport East (and a member of the committee) has welcomed the move (in June of this year), saying that the tolls could be lowered for people living in the surrounding area: “Like the Dartford crossing I can't see why you shouldn't be able to get a concession for those within a certain postcode area.”

Now this is all well and good and very welcome but a tad late, as lest we forget, that New or Unreconstructed Old Labour (under Tony Blair and then Gordon 'Houdini' Brown) were firmly in power (with significant majorities) from 1997 until 2010 so why did they not do something about the Severn bridge tolls then when they had the opportunity?

It's also worth remembering that the private company that operates the Severn Toll Bridges has raised almost £226m over the past three years – yet has spent barely £15m on essential maintenance on the original crossing's damaged cables - which suggests that the bridge tolls are being used as little more than a cash cow, should not come as much of a surprise to many people.

This little gem was extracted by Plaid Cymru's South Wales Central AM Chris Franks, who obtained the figures (in June 2010) under the Freedom of Information Act. The FOI request showed a significant difference between the large amounts of money raised by Severn River Crossing PLC from the toll, and the relatively small amount being spent on treating the damage to the cables on the old crossing.

The Highways Agency suggested that another £5.8m worth of maintenance will take place over the next five years. This despite the fact that some £225,733,000 has been collected in bridge toll revenue since 2006. People may well begin 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 2014 or 2016.

Even when you looking beyond the immediate teeth grinding impact of yet another annual increase in the Severn bridge tolls (which we will all face in January 2011) there is another issue – one that is beginning to become worth considering, what's going to happen in 2014 (or 2016) when it has been estimated that the PFI contract will have been covered by toll receipts.

Who actually is going to own the bridge (or bridges) and will they stop collecting the tolls? If not then the bridge (or bridges) which sit on the border - with the toll on the newer bridge being collected in Wales, and the older one being collected in England - will the bridge and the tolls simply revert back to the Department of Transport?

Or if perchance the whole package ends with the National Assembly, by default, then 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 – which 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?

Something else that is worth noting that in October 2009, Sadiq Khan, the then New Labour Minister of Transport, announced a grant of £6m to the Humber Bridge company, saying that, “the Government was committed to doing everything it can to protect communities and businesses from economic downturn and help the country to recover. That is why I decided not to accept the Humber Bridge board's proposed toll increases” if that's the case in England, then why not in Wales?

Tuesday, 1 June 2010

A TIDY LITTLE EARNER

The news (Western Mail 1st June 2010) that the private company that operates the Severn Toll Bridges has raised almost £226m over the past three years – yet has spent barely £15m on essential maintenance on the original crossings damaged cables - should not come as much of a surprise to many people. The Severn Crossings Tolls have been a valuable cash cow for many years, aside from being a tax on jobs, a tax on commuters, a tax on growth and tax on business in the south of Wales.

Plaid Cymru's South Wales Central AM Chris Franks obtained the figures under the Freedom of Information Act, which show a 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 will take place over the next five years. Some £225,733,000 has been collected in bridge toll revenue since 2006. people may well 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 2016.