| Previous Section | Index | Home Page |
'(2A) Permit regulations shall set out standard provisions which must be included in a permit scheme so as to ensure a reasonable level of consistency between permit schemes within the
No. 11, in page 16, line 40, at end insert—
'(f) for or in connection with the obtaining of permits for works carried out by the highway authority, and/or the inclusion of works carried out by the highway authority in a register of permits.'.
No. 12, in page 20, line 31, at end insert—
'(3B) A street authority may not give a direction under this section in respect of works for which a permit under part 3 of the Traffic Management Act 2004 has been issued.".'.
Mr. Chope: I hope that the Government will be as accommodating of new clause 2 as they were of new clause 1.
The provision deals with a stealth tax that is estimated to cost £1.2 billion a year or £55 per household per year. It is therefore quite high up the list of stealth taxes. To put it in context, while that figure is not as high as the pension stealth tax of £5 billion or £6 billion a year, it is greater than the total yield from the new charging regime that the Government propose to impose on higher education. Our debate is therefore significant, because if the Government accepted the new clause, they would be unable to use the permit scheme in part 3 as a new stealth tax.
One of the most frustrating aspects of the Committee stage was the lack of clarity about the Government's intentions on the use of lane rental, penalties for roadworks that take longer than is reasonable and the introduction of a permit scheme, perhaps along the lines of the scheme used in New York. If the Bill remains unamended, the Government will have the power to use the permit scheme as a means of imposing charges on utilities for the mere occupation of the highway, irrespective of whether the occupation is necessary. The Transport Act 2000 introduced a lane rental scheme, which was piloted in Camden and Middlesbrough. Those lane rental pilots expire at the end of March and the Government consultants, Halcrow, will report on the outcome. It is already clear from their interim report, however, that the pilots have proved to be expensive and bureaucratic, and have not resulted in a reduction in the number and incidence of roadworks undertaken by utilities. New clause 2 would prevent the Government from using the permit scheme as a revenue-raising measure on a par with lane rental.
In Committee, the Under-Secretary of State for Transport, the hon. Member for Harrow, East (Mr. McNulty) said:
- "the Bill is not about introducing permit schemes as a revenue-raising exercise."
- "We must ensure that there is sufficient ability to charge for the permits to pay for the scheme. However, it is not meant to be, and I do not think that it will be, a revenue-raising scam".—[Official Report, Standing Committee A, 29 January 2004; c. 163–65.]
Mr. Eric Forth (Bromley and Chislehurst) (Con): I am interested in my hon. Friend's analysis, but how does it accord with the view in many quarters that we should allow local authorities the maximum discretion in deciding what to do in their own area? Is there not an argument for saying that in this case, as in many others, local authorities should be allowed wide discretion in charging for permits, as they would be accountable to voters later?
Mr. Chope: My right hon. Friend makes a case for giving local authorities a great stealth tax power but, having been the leader of a local authority, I believe that it should be the responsibility of national Government and Parliament to set the parameters of local authorities' tax and revenue-raising powers. It is a great privilege for local authorities to be able to raise taxes through, for example, the council tax. Imposing charges for car parking or occupation of the road is one thing, but a scheme for raising more than £1 billion a year from the utilities and, effectively, the public is something else—[Interruption.] My right hon. Friend the Member for Bromley and Chislehurst (Mr. Forth) thinks that that is a good idea, and I look forward to hearing his arguments later. Speaking as someone who is concerned on behalf of ordinary householders whose utility bills are already of significant size and will go up further as a result of various measures introduced by the Government, I think householders throughout the country need another £55 added to their utility bills each year like they need a hole in the head. I am in favour of flushing out the Government's attitude to this stealth tax. If it means that I go down fighting on behalf of my constituents and other householders, but get some criticism from my right hon. Friend the Member for Bromley and Chislehurst, so be it.
3 pm
Mr. Andrew Miller (Ellesmere Port and Neston) (Lab): Is there not a flaw in the hon. Gentleman's argument? He has argued before that the utilities, particularly modern utilities such as broadband, are delivered in a way that disadvantages people in rural communities. Is it not the case that rural communities would not pay the alleged tax that he has invented, and the burden would fall entirely on urban dwellers?
Mr. Chope: I have not yet referred to any particular utilities or to broadband. The hon. Gentleman mentions the specific issue of broadband and telecoms infrastructure. As he knows, that is a sensitive issue, and some of the more remote communities may get access to broadband without the roads having to be dug up.
Mr. Miller: So will the hon. Gentleman concede that his earlier figure of £55 per household is wrong?
Mr. Chope: I will not concede that that is wrong. It is, inevitably, an average. The calculation is based on dividing the figure of £1.2 billion by the number of
households, which gives a possible cost per household of £55 per annum to introduce the scheme that the Government have in mind. The hon. Gentleman identifies a difference between rural and urban areas, which means that in some areas the figure will be less than £55 and in others it will be much more than £55.
Mr. Redwood: My hon. Friend has put his finger on a crucial point. Is this not part of a pattern? The Government came in with a utility windfall tax, went on to a pension tax, then to a telecoms tax—a swingeing £22 billion on our leading utilities at the cutting edge of the technological revolution—and now the Government are going on to another set of stealth taxes on utilities trying to improve the service to our constituents. I am entirely with my hon. Friend, and in disagreement with my right hon. Friend the Member for Bromley and Chislehurst (Mr. Forth) who, on this rare occasion, has got it wrong.
Mr. Forth: Wait and see. The House has not heard me yet.
Mr. Chope: Indeed, I have not heard my right hon. Friend's speech. I am grateful to my right hon. Friend the Member for Wokingham (Mr. Redwood) for his support.
Looking at the matter in context, it is clear that the biggest burden will be in the water industry, which is carrying out a major investment programme. The industry estimates that the cost of the scheme that the Government have in mind would be in the region of £300 million a year. If the Government accept the new clause, we will know that they do not have a stealth tax in mind. I recently attended a Greater London authority meeting, which was not an experience I would wish on other hon. Members. I noticed how enthusiastic the Mayor of London is about getting his hands on new revenue from the permit regime.
I shall speak briefly about the amendments included in the group. Amendment No. 10 seeks to avoid the administrative nightmare for utility companies of myriad different permit schemes operating across England and Wales. It would integrate an electronic noticing system within any permit scheme to further reduce the administrative overheads. The amendment is in line with the stated intentions of the Minister, who said in Committee:
- "The greater the standardisation that the group can achieve, the better"—[Official Report, Standing Committee A, 29 January 2004; c. 166.]
Amendment No. 11 introduces uniformity by ensuring that the local traffic authority would have to abide by the same conditions as apply to utilities. If
permits are an effective way of meeting the overall objectives of reducing congestion caused by obstruction in the road, logic requires that highway authorities should be included. Clause 32(2)(a) states that the permit scheme may make provision as to the persons who require a permit, which does not rule out the highway authority needing a permit for its works. The amendment would make that explicit.Amendment No. 12 is designed to address the potential conflict between permit schemes and directions under section 56 of the New Roads and Street Works Act 1991. It is absurd to have different provisions in different Acts controlling the same set of circumstances. The amendment makes it clear that where a permit is granted, it will take precedence over section 56.
In conclusion, the amendments are supported by the Transport Sub-Committee, which has expressed its grave scepticism about the entire permit scheme and its opposition to the lane rental scheme. It believes that the Government should develop a scheme, which we strongly support, for penalties where utilities take longer than is reasonable to carry out works on the highway. Introducing an additional stealth tax is the wrong way to proceed.
| Next Section
| Index | Home Page |