Further memorandum by the National Alliance
Against Tolls (RP 05A)
ROAD PRICING
INTRODUCTION
1. The committee was due to consider the
M6 relief toll road opened in December 2003 and the proposed northern
extension, but it was announced on the 28 October that it would
instead have a wider inquiry. The press notice referred to the
"Feasibility Study of Road Pricing in the UK" that was
released on 20 July 2004 at the same time as the Government's
"The Future of Transport White Paper". Various questions
were posed by the Committee.
2. The National Alliance Against Tolls (NAAT)
was formed by groups protesting against existing tolls in England,
Scotland and Wales. The NAAT has already made a submission for
the M6 toll inquiry. We have been told that it will be considered
by this new inquiry and that we could make a further submission.
Below, the NAAT attempts to answer the questions posed by the
Committee and also asks who supports tolls.
Should road pricing be introduced for certain
sections of the road network in the short term?
3. NAAT believe that all tolls should be
scrapped. Tolling just some roads is discriminatory and grossly
unfair to those who live in areas most affected.
If road pricing is introduced, what factors should
determine which roads are priced and what technology should be
used?
4. If road pricing is introduced it would
be unfair unless it was applied to all roads. If not applied to
all roads then it would likely increase traffic on less suitable
roads and lead to longer journeys. The simplest technology is
to charge for roads via a fuel tax, ie the status quo.
How "hi-tech" does road pricing need
to be?
5. The existing fuel tax is a simple charge
for road use. Any other system will be costly to implement, costly
to run and liable to widespread evasion that would need costly
backup systems to try and control it. Transition would be costly
and probably chaotic. There is a possibility that the system would
fail completely due to technological problems or high levels of
evasion. If the system replaced fuel taxes then it is likely that
some people would be double charged during any transition.
What role should local highway authorities play
in introducing road pricing?
6. The involvement of local authorities
implies local discretion which in turn implies discrimination
eg residents of one area might be treated less severely than residents
of another area. Road pricing would be a tax, and if introduced,
then it should be applied on a universal basis.
How easy will it be to move from individual toll
roads and local urban congestion charging schemes in the short
term, to national road pricing in the longer term, and what needs
to be done to ensure the transition is a success?
7. This question begs the issue of who will
benefit from the "success". We have already said how
any transition might go. Though if national road pricing is to
be introduced, then as a first step, we would expect to see the
scrapping of all the existing tolls.
How will the Lorry Road User Charge fit into any
national road pricing and motorway tolling developments?
8. The short answer is that it probably
won't. Any motorway tolling developments are likely to be privately
financed and operated, and thus difficult to integrate into any
other charging scheme.
Are there other measures which could reduce congestion
more effectively?
9. Discouraging population growth, particularly
in those areas that are already overcrowded, will reduce congestion.
The main congestion problem is in the peak periods, this might
be eased by different work patterns or lifestyles such as car
sharing, home working, flexible work hours and more walking. Reduction
of waste would also reduce traffic, but mainly off peak.
Some overseas areas where tolls already exist,
are considering removing tolls to reduce congestion on non toll
roads or to avoid more road building.
Who supports Tolls?
10. Our original submission set out why
the NAAT is opposed to tolls. We believe that the majority of
road users if asked in an unbiased way will reject tolls. The
2003 National Travel Survey said that 89% of person miles per
year are by road vehicle (the other 11% is walking, bikes, trains,
trams and planes). There are those who favour tolls, including
some politicians and economists and, of course, all toll road
operators.
11. The most recent instance of politicians
support for tolls was the various votes on the Mersey Tunnels
Act 2004. The effect of this Private Act was to increase tolls
mainly affecting those people living or working on the Wirral
peninsula. Despite it's limited geographical effect MPs from all
over the UK voted for it.
12. Some politicians will favour tolls as
a way of encouraging ordinary people on to public transport. In
any case economic growth and a rising population means that more
roads are needed, but at the same time taxes are unpopular. Governments
see toll roads as a way of both avoiding expenditure (where roads
are operated privately) and generating income though tolls. Best
of all from a government's point of view is to sell public roads,
potentially generating large receipts. In 1999 the authority that
runs the Mersey Tunnels hoped to sell them for a period of 25
years and thus generate receipts of £425 million. That did
not proceed following opposition from local MPs and unions. In
October this year, Mayor Daley in Chicago announced the sale of
the Chicago Skyway road for 99 years for $1.8 billion. Also in
October the Italian government was reported to be considering
the sale of roads, though the Northern League leader said that
this was like selling the Coliseum.
13. Many economists generally believe in
pricing as many goods and services as possible, and that goods
and services should be provided by the private sector. They will
tend to argue for a private road system financed by tolls. Strangely
the source of this philosophy did not completely agree with tolls.
Here are three quotes from the Wealth of Nations, which we believe
are still relevant:
(a) "Whatever exigency of the state
therefore this tax (turnpike tolls) might be intended to supply,
that exigency would be chiefly supplied at the expense of the
poor, not the rich; at the expense of those who are least able
to supply it, not of those who are most able."
(b) "If government should at any time
neglect the reparation of the high roads, it would be still more
difficult than it is at present to compel the proper application
of any part of the turnpike tolls. A large revenue might thus
be levied upon the people without any part of it being applied
to the only purpose to which a revenue levied in this manner ought
ever to be applied."
(c) "If the tolls which are levied at
the turnpikes should ever be considered as one of the resources
for supplying the exigencies of the state, they would certainly
be augmented as those exigencies were supposed to require. According
to the policy of Great Britain, therefore, they would probably
be augmented very fast. But the turnpike tolls being continually
augmented in this manner, instead of facilitating the inland commerce
of the country as at present, would soon become a very great incumbrance
upon it."
14. In any case, roads are "lumpy"
ie small changes in demand will have no effect on supply. Large
changes in demand may affect supply but only following a very
long delay. Provision of new roads is governed by political and
not market considerations.
15. In our view roads are an essential feature
of a civilised state. There should be free movement on the roads
not impeded or discouraged by barriers or tolls. Roads should
not be privately owned.
16. Last we have the private road operators.
Private roads have become a major industry. Contractors build
the roads, whether public or private. Road operators finance them
and then collect the money. Bloomberg on 8 November quoted one
fund manger: "The highway operators are real cash-generating
machines".
17. Governments, in their desire to avoid
roads expenditure, may make one sided agreements with private
road operators. The private operator will frequently be able to
charge what they like, there may be measures to encourage road
users to use the private road, and penalties if the government
does something that inhibits the use of the private road such
as building another road.
18. There is a large amount of money available
to those who operate toll roads, and they are at an advantage
compared with those who do not want tolls. According to a report
in the Shropshire Star on the 1 November, the operators
of the M6 toll spent £3 million on marketing the road.
CONCLUSION
19. NAAT view is still that tolls are unfair,
uneconomic and unwanted by most road users. We believe that existing
tolls should be phased out and no new tolls introduced.
November 2004
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