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.”
Showing posts with label Severn Bridge. Show all posts
Showing posts with label Severn Bridge. Show all posts
Saturday, 22 December 2012
Friday, 30 July 2010
A NICE LITTLE EARNER!
ALMOST £18 million of taxpayers' money has been handed to the operator of the Severn Bridges for repairs to the old Severn Bridge, the Department of Transport (DoT) has admitted. South Wales Central Plaid Assembly Members Chris Franks and Leanne Wood received a letter from the DoT which revealed that taxpayers have footed the bill for treatment to corrosion on the main cable and repairs to the cantilever edges of the M48 bridge.
This is a result of the concession agreement which was signed with bridge operator Severn River Crossing Plc (SRC) in 1992, which stated that the UK Government is liable for latent or pre-existing defects. The corrosion and damaged cantilever edges are seen to fall within these brackets with the cost of treating them £17,871,666 since 2005/06. This is likely to rise to £21 million by next May. This is despite tolls to cross both Severn crossings rising to £5.50 for a car and £16.40 for a truck.
The Plaid Cymru AMs hit out, Leanne Wood saying: "While a private firm reaps the profits from the substantial toll charges to get into Wales, the public is left to pick up the tab for essential repairs associated with pre-existing defects." The Plaid AMs noted that some £225, 733,000 SRC has made in toll revenues from both bridges since 2006. Chris Franks AM called it "astonishing" that tax payers are bearing the cost while Ms Wood called it a "very bad business deal". Leanne said: "The reverberations of this contract clause are being felt some 18 years later."
The Highways Agency, on whose behalf SRC operates the bridge, said: "The risks for defects that existed prior to the concession were not transferred to SRC as this would have resulted in significantly higher tolls." He said when the contract was signed, risks could not be quantified and no latent defects were identified until 2005/06. Further costs of £3.8 million are expected for this financial year to tackle the problems.
This is a result of the concession agreement which was signed with bridge operator Severn River Crossing Plc (SRC) in 1992, which stated that the UK Government is liable for latent or pre-existing defects. The corrosion and damaged cantilever edges are seen to fall within these brackets with the cost of treating them £17,871,666 since 2005/06. This is likely to rise to £21 million by next May. This is despite tolls to cross both Severn crossings rising to £5.50 for a car and £16.40 for a truck.
The Plaid Cymru AMs hit out, Leanne Wood saying: "While a private firm reaps the profits from the substantial toll charges to get into Wales, the public is left to pick up the tab for essential repairs associated with pre-existing defects." The Plaid AMs noted that some £225, 733,000 SRC has made in toll revenues from both bridges since 2006. Chris Franks AM called it "astonishing" that tax payers are bearing the cost while Ms Wood called it a "very bad business deal". Leanne said: "The reverberations of this contract clause are being felt some 18 years later."
The Highways Agency, on whose behalf SRC operates the bridge, said: "The risks for defects that existed prior to the concession were not transferred to SRC as this would have resulted in significantly higher tolls." He said when the contract was signed, risks could not be quantified and no latent defects were identified until 2005/06. Further costs of £3.8 million are expected for this financial year to tackle the problems.
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.
Tuesday, 5 January 2010
BRIDGES OR BANKERS?
Tuesday 5th January 2009 - which means that for 4 days commuters, travellers, businesses and visitors to Wales have had to fork out yet more money to do business within Wales and beyond. I was talking to someone today who told me that they could recall paying the princely sum of twelve and half pence to cross the old Severn Bridge in the mid 1970's - what price the £5.50 per car we pay today.
Looking beyond the immediate teeth grinding impact of yet another annual increase in the Severn bridge tolls, there is another issue – one that is beginning to become worth considering, what’s going to happen in 2014, 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) sit on the border - but the toll on the newer bridge is collected in Wales, the older one being collected in England - so will the bridge and the tolls simply revert back to the Department of transport? Or if perchance it comes down to the National Assembly, by default or as a result of central government indifference, then does the National Assembly act as merely an agent for the Department of Transport or does it end up with a measure of a degree of freedom of action?
With that thought in mind, what choices could be made - something that might be worth considering is that if the current tolls were halved then, what could be accomplished by using a percentage of the remaining toll fees to cover ongoing maintenance of the bridge and what could be accomplished by 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 any of the future toll fees disappearing into the Westminster coffers merely to help to bail out the bankers?
Looking beyond the immediate teeth grinding impact of yet another annual increase in the Severn bridge tolls, there is another issue – one that is beginning to become worth considering, what’s going to happen in 2014, 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) sit on the border - but the toll on the newer bridge is collected in Wales, the older one being collected in England - so will the bridge and the tolls simply revert back to the Department of transport? Or if perchance it comes down to the National Assembly, by default or as a result of central government indifference, then does the National Assembly act as merely an agent for the Department of Transport or does it end up with a measure of a degree of freedom of action?
With that thought in mind, what choices could be made - something that might be worth considering is that if the current tolls were halved then, what could be accomplished by using a percentage of the remaining toll fees to cover ongoing maintenance of the bridge and what could be accomplished by 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 any of the future toll fees disappearing into the Westminster coffers merely to help to bail out the bankers?
Tuesday, 22 December 2009
HERE WE GO AGAIN!
Once again the Severn Bridge tolls, which are the highest in the UK, are set to rise again on 1st January 2010, upon receipt of an order from the Secretary of State, in line with the Severn Bridges Act 1992. It is worth noting that there is provision in the Act for the Secretary of State to amend the tolls, which would at least be a start in helping reduce the costs that road users in Wales are currently facing.
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The Severn Bridge crossing tolls will rise on January 1st 2010, the new tolls will be:
Cars and Motor Caravans: Currently £5.40 will rise to £5.50
Small Goods Vehicles and Small Buses: Currently £10.90 will stay at £10.90
Heavy Goods Vehicles and Buses: currently £16.30 will rise to £16.40
Source Severn River Crossing Plc Website: http://www.severnbridge.co.uk/TollPrices2010.pdf
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By way of comparison across the bridge so to speak, it is worth noting that in October, Sadiq Khan, the 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?
Looking beyond the immediate and irritating problem of the tolls, as has been pointed out elsewhere, there is another issue that is worth thinking about – what’s going to happen in 2014, which is not that far away, 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) sit on the border - but the toll on the newer bridge is collected in Wales, so will the bridge and the tolls simply revert back to the Department of transport?
Or if it comes to 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?
-------------------------------------------------------------
The Severn Bridge crossing tolls will rise on January 1st 2010, the new tolls will be:
Cars and Motor Caravans: Currently £5.40 will rise to £5.50
Small Goods Vehicles and Small Buses: Currently £10.90 will stay at £10.90
Heavy Goods Vehicles and Buses: currently £16.30 will rise to £16.40
Source Severn River Crossing Plc Website: http://www.severnbridge.co.uk/TollPrices2010.pdf
-----------------------------------------------------------------
By way of comparison across the bridge so to speak, it is worth noting that in October, Sadiq Khan, the 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?
Looking beyond the immediate and irritating problem of the tolls, as has been pointed out elsewhere, there is another issue that is worth thinking about – what’s going to happen in 2014, which is not that far away, 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) sit on the border - but the toll on the newer bridge is collected in Wales, so will the bridge and the tolls simply revert back to the Department of transport?
Or if it comes to 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?
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