Supplementary memorandum by the Institute
of Directors (RP 15A)
ROAD PRICING—FURTHER EVIDENCE
Thank you for the letter of 4 February, requesting
further evidence on my statement in oral evidence that, in the
view of IoD members, congestion costs are rising.
The IoD does not have primary research on this
point, but there are a number of points which, when pulled together,
lead us to take the view that these costs are on the increase.
CONGESTION INCREASING
First, congestion is increasing; it seems reasonable
to assume that the costs it imposes on businesses are rising,
too.
Between 1952 and 1999 the number of total vehicle
kilometres travelled by cars and vans increased by 1,300%, whereas
total road lengths rose by just 25% over the same period.[79]
The recent Transport White Paper shows road traffic continuing
to grow—by 26% in 2010 (compared to 2000 levels), 31% in
2015 and 40% in 2025.
Clearly, traffic is growing faster than road
provision—hence greater congestion.
Of course, it is theoretically possible that
the savings made due to technological advances (eg greater fuel
efficiency) could outweigh the extra costs due to congestion,
but we have encountered no evidence or claim to this effect.
TRANSPORT SYSTEM
A NEGATIVE
FACTOR FOR
BUSINESS
Second, in the survey reported in our Transport
Matters report (October 2004), we asked members to what extent
the state of Britain's transport infrastructure affects their
plans for the future development of their organisations. 65% of
respondents felt that it makes a "major" or "minor"
negative impact. Just 8% saw the transport system as a positive
factor: (The results are given in chart form at the end of this
note.)
Although this question did not focus specifically
on the costs of congestion, it highlights a widely held view that
the transport system imposes excessive costs on business. Again,
it seems very likely that the response given to this question
reflects increasing frustration at rising congestion costs.
ANECDOTAL COMMENT
Finally, there is simple anecdotal comment from
members, who clearly feel that congestion is getting worse and
costing their businesses more. We make no greater claim for these
comments, which have not been subjected to any rigorous analysis.
Nevertheless, it would seem wrong to ignore them, especially as
they fit with the trends identified above of increasingly heavy
use of the road system and the negative business impact of our
transport system in general.
James Walsh
Head of European and Regulatory Affairs
Source: IoD member questionnaire survey, May 2004.
606 responses. Figures are percentage of respondents.
79 More Roads and Road Pricing: the way to go?,
IoD, 2001 Back
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