Memorandum by RoadChef (RP 32)
ROAD PRICING: SHOULD ALL ROADS BE TOLL ROADS?
1. INTRODUCTION
1.1 RoadChef
RoadChef is Britain's third largest Motorway
Service Area (MSA) operator, and is one of the fastest growing,
trading from 20 sites that represent approximately 24% of the
UK MSA market. RoadChef is a significant employer and contributor
to the economy, employing over 2,500 staff nationwide.
1.2 RoadChef's Commitment to the Road User
RoadChef is committed to providing a comprehensive
service for the road user and local communities around its sites.
We are developing a continuing programme of positive and proactive
initiatives that will help local communities and the travelling
public, such as:
— HGV parking partnerships to take
the strain off the local area network and ease congestion on roads.
— The development of a closer relationship
with coach operators, using MSAs as hubs for group travel, benefiting
the public and relieving the strain on the road system.
— The provision of picnic areas at
MSAs, in line with the Government plan.
RoadChef is eager to improve the UK motorway
experience but firmly believes that, without change, British motorists
and foreign tourists will continue to suffer at the hands of unnecessary
and antiquated regulations.
1.3 RoadChef's Evidence to the Transport Committee
Inquiry
As a key stakeholder in UK motorway operations,
particularly in terms of the safety of motorway users, RoadChef
would welcome an opportunity to contribute to the Transport Committee's
Inquiry into road pricing.
RoadChef operates the Norton Canes service area
on the M6, the most recent MSA development in the UK and the only
MSA currently operating on a toll road. We are therefore uniquely
qualified to offer evidence to the Select Committee on this key
aspect of a road pricing regime.
2. BACKGROUND
2.1 Universal Service Obligation
MSA operators have a universal service obligation—to
stay open 24-hours a day to ensure motorists always have somewhere
to stop, rest, refresh themselves and refuel their vehicles. RoadChef
wishes to continue to offer this level of service—accepting,
as at present, that a percentage of customers (currently 35%)
will use the facilities without making any purchases.
2.2 Regulatory Review
RoadChef is contributing to the review of the
Road Circular currently being undertaken by the Highways Agency.
RoadChef accepts, along with the rest of the
industry, that safeguards are essential to protect motorists and
promote road safety. However, in return for a high level of public
service RoadChef is seeking greater freedom for MSAs to run their
businesses without unnecessary constraint, allowing MSA operators
fair opportunities to improve services for their customers. This
would in turn increase the number of drivers breaking their journey
and therefore improve road safety.
3. THE IMPACT
OF ROAD
PRICING ON
MOTORWAY USAGE
The issue of road pricing, whilst not immediately
seen as a major issue for MSAs, compounds the current regulatory
stranglehold on the commercial operation of MSAs.
3.1 Revenue
In particular, we envisage that the traffic
flow and the mix of vehicles using motorways on which road pricing
is introduced will be affected, and this in turn will impact on
current patterns of MSA usage.
— If overall traffic flow decreases,
it is reasonable to expect that motorway service area usage will
change, yet MSA operators will carry existing operating costs
generated by the universal service obligation.
— If HGV traffic is reduced by road
pricing, the facilities required to meet the universal service
obligation will be under-utilised, with the result that the investment
must remain without the guarantee of any return on that investment.
— If tourist traffic is reduced by
road pricing, the use of revenue-generating facilities (restaurants,
retail outlets) will be reduced.
In short, road pricing could place on MSA operators
yet another hurdle to overcome in generating income.
3.2 Safety
MSAs play a key role in encouraging the safe
use of motorways, not least by providing an opportunity for rest
and recuperation for drivers that can easily and safely be accessed
without leaving the motorway. Figures from the Department of Transport
show that 23% of all motorway accidents occur at motorway junctions.
Equally, recent research conducted for the Institute of Advanced
Motorists shows that 50% or motorway drivers do not stop after
driving for two hours.
4. ROAD PRICING
INQUIRY
The Committee has set out in its Press Notice
a number of specific points that it wishes to examine. RoadChef
has a view on a number of these questions, as follows:
— Should road pricing be introduced
for certain sections of the road network in the short term?
A more detailed study including the effect of
road pricing on MSAs must be undertaken in order to determine
the economic impact of such a regime. It may be that pilot road
pricing is the most effective way of understanding and measuring
this impact.
The transfer from a free motorway to a "toll"
motorway, by virtue of it being a new concept, means that there
has to be flexibility in the regulatory environment in which MSAs
operate so that MSAs remain viable both commercially and in respect
of the universal service obligation.
— If road pricing is introduced, what
factors should determine which roads are priced?
When determining which roads should be priced,
RoadChef would wish to see a review of the feasibility of other
facilities beyond the motorway which would impact upon the MSAs
on the motorway.
A consultation with all the stakeholders including
MSAs and the impact of the introduction of such tolls on the viability
of stakeholders must be undertaken to ensure future viability
in terms of the delivery of the universal service obligation and
of the Government's targets for road safety.
5. CONCLUSION
RoadChef's principal concern in offering evidence
to the Transport Select Committee is to register the view that,
in considering the introduction of a road pricing regime, due
consideration is given to the viability of MSAs on motorways that
are subject to road pricing, so that MSA operators are able to
continue to promote road safety, deliver the universal service
obligation and remain commercially viable.
Our unique position as the only MSA operator
with a site on a toll motorway will enable RoadChef to offer a
detailed insight into the impact of road pricing on MSA services.
November 2004
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