Previous SectionIndexHome Page


Brian White: I have considerable sympathy with the hon. Member for Christchurch (Mr. Chope) because the amendments reflect a number of issues that I raised in Committee, especially a permit scheme. I was interested in why he mentioned a stealth tax and the figure of 55 quid. That assumes that the utilities would be subsidising local authorities, it assumes all the costs but none of the savings, and it is a worst-case scenario. To present the situation as the hon. Gentleman did exaggerates points that are validly made.

Mr. Miller: Did my hon. Friend notice that the hon. Gentleman omitted the effect of the business rate, and told me in response to an intervention that the £22 billion income from the telecoms auction was this Government's stealth tax? As my hon. Friend knows, that was started by another Government.

Mr. Deputy Speaker (Sir Alan Haselhurst): Order. I hope that in his mind the hon. Gentleman was addressing the Chair, rather than his hon. Friend.

Brian White: As my hon. Friend says, the 3G licence was in the Conservative party manifesto in 1997, on which the right hon. Member for Wokingham (Mr. Redwood) fought that election.

Mr. Redwood: I was the shadow spokesman when the measure went through, and I opposed it on behalf of Her Majesty's loyal Opposition on the grounds that it would do great damage to the industry, which it did.

Brian White: That does not answer the point that the right hon. Gentleman fought an election on that policy, which was proposed by the Government whom he supported. He has a selective memory.

The utilities have expressed concern about the way in which local authorities will operate the permit scheme. There is perceived unfairness in the local authorities'

16 Mar 2004 : Column 199

both operating and being subject to the permit scheme. I hope Ministers will discuss that with the utilities. There is also concern among utilities that additional costs will be passed to them and therefore to their customers, particularly in the telecoms industry. That industry is particularly fiercely competitive at the moment and there is not much scope for companies to absorb additional costs. In fact, most of them are fairly efficient. Telecoms works tend to be smaller in size and shorter in duration—many are completed in one day. On Second Reading, the Minister referred to the establishment of a working group to try to ensure that permit schemes take on board the needs and priorities of the economy as a whole. I urge him to consider any recommendations that come from that in relation to the operation of permit schemes.

Most telecoms companies strive to connect customers in line with their requests. There is a danger that all schemes will be treated equally although they do not cause the same amount of damage. Some roadworks are minor and involve non-sensitive roads. Permit schemes must be flexible enough to ensure that different schemes are treated differently—otherwise, people's fears about the size and cost of bureaucracy may be realised.

In response to my amendments in Committee, the Minister gave an assurance that permit schemes will be covered by regulations. I welcome that, but urge him to undertake full consultation before implementing the regulations, because the industry fears that that will not happen.

The hon. Member for Christchurch talks about the need for a national permit scheme, or at least one that is consistent across the country. Can the regulations be drafted from the point of view of someone who has to fill in the forms? Many utilities fear that they will have to fill in forms for many different types of scheme. It is important to have not only local variations to adapt to local circumstances, but consistency nationally so that national companies are not faced with myriad different approaches.

The new clause is unnecessary. This is not a stealth tax. There are legitimate concerns, but the hon. Member for Christchurch overstated them and they should be dealt with flexibly in regulations.

Mr. Redwood: I share the worry felt by my hon. Friend the Member for Christchurch about part 3, which gives wide-ranging powers to local authorities that wish to take advantage of them to set up permit schemes. In particular, clause 36(5) gives local authorities substantial powers to set


to decide on


and on


They are able to settle


and


16 Mar 2004 : Column 200

In my experience, several local authorities—they are usually under Labour or Liberal Democrat control—are constantly on the lookout for new sources of revenue. As they have many ways of spending, or often wasting, the money, they wish to raise more. I fear that those local authorities would see public utility businesses as a soft target. They would, after all, be following the example of Her Majesty's Government, who saw them as a soft target in the run-up to the 1997 election, confirmed it in the Budget that introduced the utilities windfall tax, and continued it with their whopping auction tax on telecoms. Through this measure, the Government are effectively encouraging local authorities to see that device as a way of raising additional money.

My hon. Friend the Member for Christchurch says that there is nothing wrong with a permit scheme, despite the bureaucracy and administrative effort involved, if it achieves the ostensible objective of the provisions. Let us remind ourselves of that objective—it is to say to utility companies that there is a cost to the rest of us when they dig up the street or road, and that it would be a good idea if they did it in as timely a way as possible, restricted the amount of road that they damaged or dug up at any given time to allow traffic to flow on the remaining part of the carriageway, rather than closing a large amount or all of it, and entered and exited the streetworks at times of day or year that do the least damage to traffic flows in the area concerned.

It is a matter of great concern to many of us that some local highways authorities and utility companies decide to embark on streetworks at the beginning of a busy term just in time for the first day back at school, which always increases traffic dramatically. We often see a cessation or reduction in roadworks during less busy times of year—in the summer holidays, for example, when traffic flows are much less because there is no school run and many more people are away on holiday. We often note that roadworks do not continue over the weekend, when traffic may be rather less, and that there is considerable blockage of the road on the Monday morning or Friday evening peak when traffic congestion is at its worst.

3.15 pm

Therefore, as someone who does not much like administrative intervention and regulation, I can live with the idea that there should be a permit scheme to regulate roadworks in the interests of making better use of the highway and increasing the capacity of the road system, particularly at busy times of day in busy areas. That may be a necessary evil. What worries me, however, is that without the amendment wisely tabled by my hon. Friend the Member for Christchurch, part 3 does not make it clear enough that its only intention is to discipline utilities and to encourage limited entry to the highway and entry only at the least difficult times of day or year. The Bill contains no statement that would prevent a local authority from seeing it as offering up a soft target for raising money.

We argued long and hard in Committee about why the proposals to limit or regulate access to the highway for roadworks do not apply to the public sector, because observation tells us that more often than not it is the highways authority, not the utilities, that does that work. I hope that the Minister will say more about that

16 Mar 2004 : Column 201

at the appropriate moment. As the Bill concentrates on the utility companies, it is most important that Ministers understand the strength of feeling on the part of people of all parties and of no party that there are far too many roadworks, that they are badly organised, and that they often run into periods of time or periods of the day when it would be far better if the highway were open to traffic.

Brian White: The right hon. Gentleman is giving a generalised picture that does not reflect what really goes on. In the case of the telecoms companies, for example, most of the cabling has already been done, so most of the works that remain to be done are minor.

Mr. Redwood: I accept that that means that such work may be much easier to regulate or does not need regulation at all. I would still hope, however, that the highways authority would take a view and suggest to the telecoms utility concerned that it would be good idea to do the work on a dull Sunday rather than a busy Monday. That would be a necessary improvement on the current regime.

I hope that the basis of any guidelines issued under part 3 will be to make more intelligent use of what highway we have and to limit the amount of restrictions upon it. It would be sensible, for example, for highways authorities to point out to water, gas, electricity or telecoms utilities that the repair or replacement work that they are doing can often be done in sections and that it would be possible, at half-past 4 or 5 o'clock at night, when the employees are thinking of going home, to close off the hole in the road again with a temporary or permanent closure of filling or tarmac so that the road can be reopened for use when they are not working on it. It would be possible to do something similar to ensure that the road is open for busy morning peaks and that the roadworks can be done thereafter.

Those are the sorts of measures for which the highways authorities should use their permit powers. If the amendment is rejected, however, greedy councils may decide that this is a marvellous opportunity to charge utilities a lot of money for engaging in streetworks and opening up the road. They may not be interested in the overall intention of speeding up the works or having them done at sensible times of the day or year, but may see a lot of advantage in allowing the utility to run on with the works, maximising the inconvenience to motorists, because they will generate more cash from the permit scheme.

I strongly recommend the new clause to the House. Without it, we will end up with another utility stealth tax that will undoubtedly have to be passed on to all our constituents in the way that my hon. Friend the Member for Christchurch describes.


Next Section

IndexHome Page