NICE BUT...

Personally I have no problem with the Severn bridges being nationalised, it just makes more sense for them to be run by the National Assembly rather than Westminster and the Department for Transport. With that in mind the preparations to transfer of control of the Severn Bridges to the National Assembly in 2018 need to start now, as if they return to Westminster (and the Department for Transport) the tolls will never be reduced.

VAT or no VAT it is still a tax on jobs and businesses

The truth is whatever Westminster based party forms the next Westminster Governments, they and the Department for Transport they simply cannot be trusted to put the interests of commuters and businesses first, they will never put Wales first. For most Westminster ministers and most Welsh MPs the Severn Bridges and tolls may be out or sight and out of mind, but they loom large in the imagination and the wallets of long suffering commuters, businesses and visitors.

Now while there appears to be a general political consensus that something must be done about the Severn bridge tolls, which is nice, but not particularly helpful. The mixed messages from the Department for Transport on the eventual ownership of the bridge and the potential fate of the tolls are not helpful. Local Labour MP’s may now be jumping up and down in relation to the Severn bridge tolls, but, this begs the question just exactly where were they between 1997 and 2010 when their party was in government.

There is talk of when the bridges come back in public ownership (in 2018) that the tolls may be maintained for an additional two years to recoup the Westminster government’s expenditure on maintenance. What may make this sting some more is that VAT will probably be dropped, so those organisations which have been recovering their VAT from bridge tolls will have to pay in full?

Now Plaid Cymru 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 Cymru 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 Cymru is to cut the tolls. By the time the two Severn Bridges come back into public ownership in 2018, Severn River Crossings plc will have milked its cash cow to the tune of about £ 1.029 billion pounds. 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 public coffers.

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. 

A MERRY CHRISTMAS (NOT)

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

A Merry Christmas from Severn Crossings PLC - NOT!

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

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

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

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

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

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

While noting that the economic impact was not substantial for most, the 2010 study found that transport; construction and tourism-related companies reliant on regular crossings suffered increased costs and reduced competitiveness. The 2010 study found that Welsh businesses were unfairly penalised by the tolls and concluded that the money should be shared with the Assembly Government and used to improve Wales’ roads and public transport.

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

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

A VIEW FROM A BRIDGE

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

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

Last year a report for the Welsh government suggestedthat abolishing the tolls would increase traffic by an estimated 12% - equivalent to about 11,000 vehicles a day – and that businesses and commuters forked out around £ 80 million pounds a year crossing the Severn bridges. Studies into the impact of the Severn Bridge Tolls on our economy are nothing new. Back in October 2010, Professor Peter Midmore's independent economicstudy of the Severn Bridge tolls which has recommended that the revenues should stay in Wales, once the crossings revert to public hands. The study of 122 businesses commissioned by the Federation of Small Businesses found the tolls had a negative impact on 30% of firms in South Wales, this compared with 18% in the Greater Bristol area.

While noting that the economic impact was not substantial for most, the 2010 study found that transport; construction and tourism-related companies reliant on regular crossings suffered increased costs and reduced competitiveness. The study found that Welsh businesses were unfairly penalised by the tolls and concluded that the money should be shared with the Assembly Government and used to improve Wales’ roads and public transport. Under the current stitch up (sorry set-up), once the cost of the Second Severn Crossing is paid off less on-going maintenance costs (possibly by 2018) then that handy revenue stream will revert to Treasury coffers in Westminster. 

REDUCED BRIDGE TOLLS

A bridge with reduced tolls...

Motorcyclists took part in a midnight celebratory crossing of the Humber Bridge on Saturday after tolls for bikers were scrapped. Charges for cars have also been halved to £1.50. The reductions are expected to boost the region's economy by £250m. Local campaigners have long called for action to be taken on the bridge tolls and the local Grimsby Telegraph, together with its sister papers in Scunthorpe and Hull, has pressed for the charges to be scrapped or reduced to £1 for cars for many years through its ‘Axe The Toll On Health’ and ‘A Toll Too Far'campaigns. Last November, the Con Dem Government announced it would be prepared to write off £150 million of the bridge's £332 million debt to allow for tolls to be reduced in return for the Humber local authorities taking on a more equal share of the outstanding debt of £182 million. Nice if you can get it...

A VERY HAPPY NEW YEAR...

Even in times of economic uncertainty at this time of year people are looking forward to Christmas and the New Year – and if they live in the southern half of our country they have been bracing themselves for the latest rise in the Severn Bridge Tolls. So news that the Severn bridge tolls will rise from £5.70 to £6 pound per car (an increase of 30 pence), small goods vehicles and small buses will have to pay £12.10 (an increase of 60 pence) and heavy goods vehicles and buses will pay £18.10 (an increase of 90 pence) is not good and will hit families, commuters and businesses when they can least afford it.

Severn River PLC who operate the franchise will certainly have a very happy new year, admittedly at our expense; they are able to raise the bridge tolls each year by the inflation rate as part of the terms of the Severn Bridges Act (1992). There timing is amazing one month before Christmas - as has I have said before the bridge tolls are an extra tax on jobs, on Welsh people going to work and on business operating in the south of Wales.

Rather ominously back in May 2011 the Welsh Affairs committee had received no hint or suggestion that tolls on the Severn Bridge will fall on the Severn Crossing when it came back into public ownership. The Committee had itself recommended (December 2010) that the toll could be as low as £1.50 in 2017 when ownership of the Severn Crossings reverts from Severn River Crossing PLC back to public ownership in 2016 or 2017 (or even perhaps 2018).

In October 2010, Professor Peter Midmore's independent economic study of the Severn Bridge tolls boldly recommended that the revenues should stay in Wales, once the crossings revert to public hands. The study found that Welsh businesses were unfairly penalised by the tolls and concluded that the money should be shared with the Assembly Government and used to improve Wales’ roads and public transport.

Now it is a matter for the public record that, once the cost of the Second Severn Crossing has been for then the revenue stream will revert straight to Treasury coffers in Westminster. The study of 122 businesses commissioned by the Federation of Small Businesses found the tolls had a negative impact on 30% of firms in South Wales, compared with 18% in the Greater Bristol area.

While noting that the economic impact was not substantial for most, the study found that transport, construction and tourism-related companies reliant on regular crossings had suffered (and continue to suffer) increased costs and reduced competitiveness. The bridges are of such importance to Wales that it is only right that control, or at least shared control, over them is in the hands of the Welsh people.

Plaid wants to see the transfer of powers (to Wales) so we can reduce the tolls on the bridges, something that could have a considerable impact on Welsh businesses and the Welsh economy. With control over the bridges devolved, Plaid has suggested reducing the cost of the tolls to under £2 a car and would also introduce new collection techniques so that people crossing the bridge would have an alternative to paying by cash. Any profit that is made could be used to maintain the bridges and upgrade Welsh infrastructure.

The day when the Severn Bridges come back into public ownership cannot come quick enough along the day that the tolls are cut. In the meantime, there may be a few other things that would be worth examining. In 2011, the Welsh Affairs Committee chair David Davies, MP for Monmouth, noted that due to "the inflexible provisions of the 1992 Severn Crossings Act, neither the government nor Severn Crossings Plc is able to freeze or reduce the toll without incurring significant costs."

A fair point, it might well be worth inquiring how come the Act was so badly written? And whether or not any individuals (elected or not) directly or indirectly benefited (financially or otherwise) with a seat on the board or with contributions to Party funds? Now that might well be worth a freedom of information request or some investigative journalism – now there's a thought?

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

I was reading a piece in the Western Mail (20th May 2011) on the Severn Bridge and the fact that the Welsh Affairs committee had received no hint or suggestion that tolls will fall on the Severn Crossing when it enters public ownership. Knowing the Tories this should come as no surprise although the Welsh Affairs Select Committee (currently chaired by the Monmouth MP David Davies) had recommended that recommended (back in December 2010) that the toll could be as low as £1.50 in 2017 when ownership of the Severn Crossings reverts from Severn River Crossing PLC back to public ownership in 2016 or 2017 (or perhaps 2018).

It's no secret that Plaid would like to see the transfer of powers in order to reduce the tolls on the bridges, which are currently £5.70 per car, £11.50 per van and £17.20 per lorry and have a considerable impact on Welsh businesses and the Welsh economy. Back in October 2010, Professor Peter Midmore's independent economic study of the Severn Bridge tolls recommended that the revenues should stay in Wales, once the crossings revert to public hands. The Professor's study found that Welsh businesses were unfairly penalised by the tolls and concluded that the money should be shared with the Assembly Government and used to improve Wales’ roads and public transport.

Under the current set-up, once the cost of the Second Severn Crossing is paid off (by 2016 or 2017) the revenue stream will revert straight to Treasury coffers in Westminster. The study of 122 businesses commissioned by the Federation of Small Businesses found the tolls had a negative impact on 30% of firms in South Wales, compared with 18% in the Greater Bristol area. While noting that the economic impact was not substantial for most, the study found that transport, construction and tourism-related companies reliant on regular crossings suffered increased costs and reduced competitiveness.

The bridges are of such vital importance to Wales it is only right that control, or at least shared control, over them is in the hands of the Welsh people. With control over the bridges devolved, Plaid suggests reducing the cost of the tolls to under £2 a car and would also introduce new collection techniques so that people crossing the bridge would have an alternative to paying by cash. Any profit that is made will be used to maintain the bridges and upgrade Welsh infrastructure.

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

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


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

                                                                                                                    Western Mail (20.05.2011) 

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

SEVERN BRIDGE TOLLS

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

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

Under the current set-up, once the cost of the Second Severn Crossing is paid off (by 2016 or 2017) the revenue stream will revert straight to Treasury coffers in Westminster. The study of 122 businesses commissioned by the Federation of Small Businesses found the tolls had a negative impact on 30% of firms in South Wales, compared with 18% in the Greater Bristol area. While noting that the economic impact was not substantial for most, the study found that transport, construction and tourism-related companies reliant on regular crossings suffered increased costs and reduced competitiveness.

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

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

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

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

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

With control over the bridges, Plaid would significantly reduce the cost of the tolls to under £2 a car and would also introduce new collection techniques so that people crossing the bridge would have an alternative to paying by cash. Any profit that is made will be used to maintain the bridges and upgrade Welsh infrastructure.

SEVERN BRIDGE TOLLS

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

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

Back in October 2010 Professor Peter Midmore's independent economic study of the Severn Bridge tolls recommended that the revenues should stay in Wales, once the crossings revert to public hands. The Professor's study found that Welsh businesses were unfairly penalised by the tolls and concluded that the money should be shared with the Assembly Government and used to improve Wales’ roads and public transport. Under the current stitch up (sorry set-up), once the cost of the Second Severn Crossing is paid off (by 2014 or 2016) the revenue stream will revert straight to Treasury coffers in Westminster.

The study of 122 businesses commissioned by the Federation of Small Businesses also found that the tolls had a negative impact on 30% of firms in South Wales, compared with 18% in the Greater Bristol area. While noting that the economic impact was not substantial for most, the study found that transport, construction and tourism-related companies reliant on regular crossings suffered increased costs and reduced competitiveness.

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

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

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

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

---------------------------------------------------------------------

SEVERN CROSSINGS REPORT

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

Source: The Severn Crossings Toll - Commons Welsh Affairs committee

-----------------------------------------------------------------------

Whilst the day when the Severn Bridges come back into public ownership cannot come quick enough along with the recommendation that the tolls be cut, there are a few other things that would be worth examining. The Welsh Affairs Committee chair David Davies, MP for Monmouth, noted that due to "the inflexible provisions of the 1992 Severn Crossings Act, neither the government nor Severn Crossings Plc is able to freeze or reduce the toll without incurring significant costs." It might well be worth inquiring how come the Act was so badly written, and whether or not anyone directly benefited financially by ending up with a seat on the board or with contributions to Party funds? Just a thought?

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?