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.
Plaid Cymru, the Party Of Wales, news, comment, opinion and observations from the South East corner of the old historic county of Gwent...
Showing posts with label Severn River Crossing Plc. Show all posts
Showing posts with label Severn River Crossing Plc. Show all posts
Monday, 5 January 2015
UNRELIABLE AND UNTRUSTWORTHY
Labels: Energy indepdendence, Green jobs
a tax on jobs,
cut Severn Bridge tolls,
maintenance costs,
Party Of Wales,
Plaid Cymru,
Severn River Crossing Plc,
Wales,
Westminster
Saturday, 2 November 2013
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.
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 Merry Christmas from Severn Crossings PLC - NOT! |
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.
Labels: Energy indepdendence, Green jobs
Merry Christmas - not!,
Plaid Cymru,
Professor Peter Midmore,
Severn Bridge Tolls,
Severn Crossing Plc,
Severn River Crossing Plc,
Tax on businesses,
Tax on Commuters,
Tax on jobs
Wednesday, 2 October 2013
FOLLOW THE MONEY...
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) lurking at the
back of your mind is the prospect of yet another Severn Bridge toll increase. Back
in June (2013) the Welsh Government was told by a UK Westminster government
minister that any changes in the running of the Severn bridges must benefit
motorists in both Wales and England.
![]() |
| Merry Christmas from Severn Crossings PLC - not! |
The Welsh government had 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. Just to add insult to injury the old
(M48) Severn Bridge is periodically closed at weekends for routine maintenance,
which continues to be funded by the Department for Transport, from the public
coffers.
At the end of the day, it comes down to money, how
much there is? How much there could be? And how much will people have to
continue to pay to cross the Severn Bridges? If we are not watching the
pennies, then the politicians certainly are. Carwyn Jones has said that any
money left over from tolls could go towards upgrading the existing M4 (in
Wales) and Westminster Transport Minister Stephen Hammond (no doubt nudged by his
civil servants) has said that no decisions (one way or the other) can yet be
made over either bridge ownership or the bridge tolls.
The Severn Bridges and the tolls may be out or sight
and out of mind to most Westminster ministers (and most MPs) but they loom
large in the imagination (and the wallets) of long suffering commuters, businesses
and visitors on a daily basis. Part of the problem is that our interests and those
of our county are almost entirely peripheral to the Westminster mindset,
something that does not help us very much especially the Welsh Government needs
parliamentary time at Westminster because of the cobbled together devolutionary
settlement.
This sorry state of affairs has been aggravated
because any concept of long term planning has been abandoned to the ‘free
market’ as ‘taking the long view’ no longer fits into the Westminster politicians mindset –
this when combined with the current Welsh Governments craven lack of ambition
merely makes things worse.
Differences of opinion between Wales and Westminster
are not new and will continue as long as the devolutionary fudge continues to
exist. Even the Welsh Conservatives have called for control of the Severn
Bridges to reside in the hands of the Welsh people. Labour in Wales, has
reluctantly said the same thing, although whether or not they would have called
for control of the Severn bridges to be passed to Wales if Labour was in power
at Westminster is another matter.
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.
Studies into the impact of the Severn Bridge Tolls on our economy are nothing
new.
Before that back 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. Under the current stitch up, once the cost of the
Second Severn Crossing is paid off less on-going maintenance costs (now
potentially sometime in 2018 due to a drop in road usage) then a potentially
handy revenue stream may revert swiftly to Treasury coffers in Westminster.
The
various studies are useful, but, to be honest are all grist to the mill, as 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 are already bracing themselves to face yet another bridge toll
rise on January 1st 2013. We have had plenty of talk but little sign
of any concrete action or a decision, one way or the other and come January 1st
2014 .
Labels: Energy indepdendence, Green jobs
Department of Transport,
Plaid Cymru,
Professor Peter Midmore,
Severn Bridge Tolls,
Severn River Crossing Plc,
Stitch up
Monday, 24 June 2013
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.
Labels: Energy indepdendence, Green jobs
Professor Peter Midmore,
Severn Bridge Tolls,
Severn Crossing Plc,
Severn River Crossing Plc,
Tax on businesses,
Tax on Commuters,
Tax on jobs,
The Con Dem Government,
The Conservatives
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...
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...
Labels: Energy indepdendence, Green jobs
a tax on jobs and commuters,
Department for Transport,
Freedom of information,
Highways Agency,
M4,
M48,
Plaid,
Severn Bridge Tolls,
Severn River Crossing Plc,
Stephen Hammond MP,
Welsh Affairs Select Committee
Monday, 6 August 2012
BETTER LATE THAN NEVER...
News that the Conservative MP for Monmouth constituency, David Davies has come around to the idea that the Westminster Government should take control of the two Severn bridges should be warmly welcomed. Currently the original Severn Bridge and the Second Severn Crossing are maintained and operated by Severn River Crossing plc (SRC), in approximately five years SRC’s contract will come to an end. While the Westminster Government is quite content for the concession to remain in private hands, the MP for Monmouth is not.
As noted by the Western Mail (06.08.2012), a briefing paper provided to Mr Davies from the House of Commons Library reveals how a European court judgement in 2000 determined when VAT is payable on bridge tolls, when they are operated by private concessions. According to the briefing paper states, local government authorities and other bodies which are governed by public law’ may not charge VAT on ‘transactions in which they engage as public authorities, even where they collect dues, fees, contributions or payments in connection with these activities or transactions’. What this means is that if the Severn bridges were run by a state body, then long suffering motorists and businesses would not have to pay VAT at 20% to drive across them.
Back in October 2010, a study for the Welsh Affairs Select Committee at Westminster, which is looking at the impact the tolls on Wales amongst other things. Professor Peter Midmore'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 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 long as the operation of the bridge tolls remain in the hands of a private company (Severn River Crossing PLC) then commuters, businesses and visitors will continue to get regularly fleeced. The bridge tolls have become in an effective a tax on jobs, a tax on commuters, a tax on growth and tax on business in the south of Wales. When the concession comes to end in 2018 the bridges could revert to the Department for Transport in London.
Plaid has long called for control, or shared control, over the bridge to be devolved to the Welsh government and those negotiations to this end should start immediately to ensure that the transfer is in place by 2018. Plaid is committed to 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 Welsh people because of the impact on 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.
As noted by the Western Mail (06.08.2012), a briefing paper provided to Mr Davies from the House of Commons Library reveals how a European court judgement in 2000 determined when VAT is payable on bridge tolls, when they are operated by private concessions. According to the briefing paper states, local government authorities and other bodies which are governed by public law’ may not charge VAT on ‘transactions in which they engage as public authorities, even where they collect dues, fees, contributions or payments in connection with these activities or transactions’. What this means is that if the Severn bridges were run by a state body, then long suffering motorists and businesses would not have to pay VAT at 20% to drive across them.
Back in October 2010, a study for the Welsh Affairs Select Committee at Westminster, which is looking at the impact the tolls on Wales amongst other things. Professor Peter Midmore'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 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 long as the operation of the bridge tolls remain in the hands of a private company (Severn River Crossing PLC) then commuters, businesses and visitors will continue to get regularly fleeced. The bridge tolls have become in an effective a tax on jobs, a tax on commuters, a tax on growth and tax on business in the south of Wales. When the concession comes to end in 2018 the bridges could revert to the Department for Transport in London.
Plaid has long called for control, or shared control, over the bridge to be devolved to the Welsh government and those negotiations to this end should start immediately to ensure that the transfer is in place by 2018. Plaid is committed to 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 Welsh people because of the impact on 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.
Labels: Energy indepdendence, Green jobs
a tax on jobs and commuters,
David Davies MP,
Monmouth Constittuency,
Professor Peter Midmore,
Severn River Crossing Plc,
The Federation of Small Businesses,
The Severn Bridge Tolls
Friday, 25 November 2011
A VERY HAPPY NEW YEAR...
Even in times of economic uncertainty at this time of year people are looking forward to Christmas and the New Year – and if they live in the southern half of our country they have been bracing themselves for the latest rise in the Severn Bridge Tolls. So news that the Severn bridge tolls will rise from £5.70 to £6 pound per car (an increase of 30 pence), small goods vehicles and small buses will have to pay £12.10 (an increase of 60 pence) and heavy goods vehicles and buses will pay £18.10 (an increase of 90 pence) is not good and will hit families, commuters and businesses when they can least afford it.
Severn River PLC who operate the franchise will certainly have a very happy new year, admittedly at our expense; they are able to raise the bridge tolls each year by the inflation rate as part of the terms of the Severn Bridges Act (1992). There timing is amazing one month before Christmas - as has I have said before the bridge tolls are an extra tax on jobs, on Welsh people going to work and on business operating in the south of Wales.
Rather ominously back in May 2011 the Welsh Affairs committee had received no hint or suggestion that tolls on the Severn Bridge will fall on the Severn Crossing when it came back into public ownership. The Committee had itself recommended (December 2010) that the toll could be as low as £1.50 in 2017 when ownership of the Severn Crossings reverts from Severn River Crossing PLC back to public ownership in 2016 or 2017 (or even perhaps 2018).
In October 2010, Professor Peter Midmore's independent economic study of the Severn Bridge tolls boldly recommended that the revenues should stay in Wales, once the crossings revert to public hands. The study found that Welsh businesses were unfairly penalised by the tolls and concluded that the money should be shared with the Assembly Government and used to improve Wales’ roads and public transport.
Now it is a matter for the public record that, once the cost of the Second Severn Crossing has been for then the revenue stream will revert straight to Treasury coffers in Westminster. The study of 122 businesses commissioned by the Federation of Small Businesses found the tolls had a negative impact on 30% of firms in South Wales, compared with 18% in the Greater Bristol area.
While noting that the economic impact was not substantial for most, the study found that transport, construction and tourism-related companies reliant on regular crossings had suffered (and continue to suffer) increased costs and reduced competitiveness. The bridges are of such importance to Wales that it is only right that control, or at least shared control, over them is in the hands of the Welsh people.
Plaid wants to see the transfer of powers (to Wales) so we can reduce the tolls on the bridges, something that could have a considerable impact on Welsh businesses and the Welsh economy. With control over the bridges devolved, Plaid has suggested reducing the cost of the tolls to under £2 a car and would also introduce new collection techniques so that people crossing the bridge would have an alternative to paying by cash. Any profit that is made could be used to maintain the bridges and upgrade Welsh infrastructure.
The day when the Severn Bridges come back into public ownership cannot come quick enough along the day that the tolls are cut. In the meantime, there may be a few other things that would be worth examining. In 2011, the Welsh Affairs Committee chair David Davies, MP for Monmouth, noted that due to "the inflexible provisions of the 1992 Severn Crossings Act, neither the government nor Severn Crossings Plc is able to freeze or reduce the toll without incurring significant costs."
A fair point, it might well be worth inquiring how come the Act was so badly written? And whether or not any individuals (elected or not) directly or indirectly benefited (financially or otherwise) with a seat on the board or with contributions to Party funds? Now that might well be worth a freedom of information request or some investigative journalism – now there's a thought?
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?
Labels: Energy indepdendence, Green jobs
Plaid Cymru,
Professor Peter Midmore,
Severn Bridge Tolls,
Severn Crossing Plc,
Severn River Crossing Plc,
Tax on businesses,
Tax on Commuters,
Tax on jobs,
The Con Dem Government,
The Conservatives
Wednesday, 6 April 2011
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.
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.
Labels: Energy indepdendence, Green jobs
Plaid Cymru,
Professor Peter Midmore,
Severn Bridge Tolls,
Severn Crossing Plc,
Severn River Crossing Plc,
Tax on businesses,
Tax on Commuters,
Tax on jobs
Wednesday, 13 October 2010
NOW THAT'S AN INTERESTING IDEA...
I for one very warmly welcome 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. The study for the Welsh Affairs Select Committee at Westminster, which is looking at the impact the tolls on Wales amongst other things.
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 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.
There are also concerns, if not fears that the bridge tolls, which currently range from £5.50 for a car to £16.40 for a heavy goods vehicle (HGV), may stop the development of small-to-medium-sized business in the areas surrounding the bridges.The study 's findings which come only a few weeks after the private company running the bridges blamed growing unemployment and a rise in the cost of fuel on a 20% drop in traffic in the past two years.
Severn River Crossings plc further warned that unless traffic levels pick up, then it could take longer to pay off the cost of the second bridge – delaying the handover of the bridges to public ownership until as late as 2018.
The study, which will be submitted as evidence to the Welsh Affairs Select Committee, which is conducting a cross-party inquiry into the economic impact of the tolls and the future of the bridges. concludes that its “highly unlikely” the tolls will be abolished even when the bridges revert to public ownership.
The private company that runs the Severn Toll Bridges (and we can thank the Tories for that) managed to raise around 226m over the last 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.
Plaid Cymru's South Wales Central AM Chris Franks, (in June 2010) used the Freedom of Information Act to show 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. His FOI request revealed that (since 2006) some £15m has been spent on main cable work on the first Severn Crossing (the M48 bridge). 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.
The knowledge that Severn River Crossings plc may, due to falls in traffic levels, take even longer to pay off the cost of the second bridge, thus delaying the eventual handover of the bridges to public ownership until as late as 2018, will bring little comfort to bridge users facing yet another annual increase in the Severn bridge tolls in January 2011.
Yet, despite persistent bleating from Westminster sheep over the years along the lines of there is nothing we can do to reduce or stabilise the tolls! It turns that this is or was not quite true as the last New Labour Government actively intervened in October 2009 in relation to the Humber Bridge.
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”. Very nice - but if that's the case in England, then why not in Wales?
Admittedly the Severn Bridges straddle the Welsh English border something that may complicate the issue of ownership with the tolls on the newer bridge being collected in Wales, and the older one being collected in England. Additionally the questionably worded concessionary agreement (and the Act of Parliament) which enables the tolls to go up each January may also have something to do with it.
One key question that no one appears to be asking or answering is what will happen to the tolls once the concession expires or ends. Will the bridge and the tolls simply revert back to the Department of Transport? Or might a portion of the tolls end up filtering down to the National Assembly, by default or as a result of central government indifference. Will the National Assembly act as merely as a local agent for the Department of Transport? Or is total control of the revenue
If it the whole package ended with the National Assembly, 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 being used to bail out the bankers?
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 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.
There are also concerns, if not fears that the bridge tolls, which currently range from £5.50 for a car to £16.40 for a heavy goods vehicle (HGV), may stop the development of small-to-medium-sized business in the areas surrounding the bridges.The study 's findings which come only a few weeks after the private company running the bridges blamed growing unemployment and a rise in the cost of fuel on a 20% drop in traffic in the past two years.
Severn River Crossings plc further warned that unless traffic levels pick up, then it could take longer to pay off the cost of the second bridge – delaying the handover of the bridges to public ownership until as late as 2018.
The study, which will be submitted as evidence to the Welsh Affairs Select Committee, which is conducting a cross-party inquiry into the economic impact of the tolls and the future of the bridges. concludes that its “highly unlikely” the tolls will be abolished even when the bridges revert to public ownership.
The private company that runs the Severn Toll Bridges (and we can thank the Tories for that) managed to raise around 226m over the last 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.
Plaid Cymru's South Wales Central AM Chris Franks, (in June 2010) used the Freedom of Information Act to show 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. His FOI request revealed that (since 2006) some £15m has been spent on main cable work on the first Severn Crossing (the M48 bridge). 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.
The knowledge that Severn River Crossings plc may, due to falls in traffic levels, take even longer to pay off the cost of the second bridge, thus delaying the eventual handover of the bridges to public ownership until as late as 2018, will bring little comfort to bridge users facing yet another annual increase in the Severn bridge tolls in January 2011.
Yet, despite persistent bleating from Westminster sheep over the years along the lines of there is nothing we can do to reduce or stabilise the tolls! It turns that this is or was not quite true as the last New Labour Government actively intervened in October 2009 in relation to the Humber Bridge.
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”. Very nice - but if that's the case in England, then why not in Wales?
Admittedly the Severn Bridges straddle the Welsh English border something that may complicate the issue of ownership with the tolls on the newer bridge being collected in Wales, and the older one being collected in England. Additionally the questionably worded concessionary agreement (and the Act of Parliament) which enables the tolls to go up each January may also have something to do with it.
One key question that no one appears to be asking or answering is what will happen to the tolls once the concession expires or ends. Will the bridge and the tolls simply revert back to the Department of Transport? Or might a portion of the tolls end up filtering down to the National Assembly, by default or as a result of central government indifference. Will the National Assembly act as merely as a local agent for the Department of Transport? Or is total control of the revenue
If it the whole package ended with the National Assembly, 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 being used to bail out the bankers?
Labels: Energy indepdendence, Green jobs
Chris Franks AM,
Department of Transport,
New labour,
Plaid Cymru,
Professor Peter Midmore,
Sadiq Khan,
Severn Bridge Tolls,
Severn River Crossing Plc,
Stitch up,
Welsh Affairs Select Committee
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?
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?
Labels: Energy indepdendence, Green jobs
Chris Franks AM,
Humber Bridge Tolls,
M4,
M48,
Mrs thatcher,
PFI,
public ownership,
Severn Bridge Tolls,
Severn River Crossing Plc,
Welsh Affairs Select Committee
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.
Labels: Energy indepdendence, Green jobs
Chris Franks AM,
Department of Transport,
Leanne Wood AM,
Severn Bridge,
Severn River Crossing Plc
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