Supplementary Written evidence from the
Department for Transport
I thought it might be helpful to you and your
Committee if I provided some clarification on the maintenance
arrangements for the Severn Crossings.
As I explained at the hearing, Severn River Crossing
(SRC) is required by the Concession Agreement to maintain both
crossings. The details of these obligations are included within
the Concession Agreement and the Highways Agency monitors these
activities to ensure that the Concessionaire is diligent in performing
this responsibility.
SRC does not publicise its maintenance costs
and there is no obligation upon the company to do so. However,
from studying SRC's annual financial statements, it is possible
to identify the annual costs of the overall operational and maintenance
expenditure. These costs include not just maintenance but also
tolling operations, insurance and other head office functions.
For the last three years these costs have been £11.1 million
(2009), £11.2 million (2008) and £10.9 million (2007).
The Highways Agency has not developed any forecasts
for maintenance costs after the concession, but the hand-back
requirements of the concession will ensure that the crossings
are well maintained by SRC until the concession ends. As with
normal procedures, these forecasts will be developed for the next
spending review.
In the meantime, I enclose a copy of SRC's Financial
Statements for 2009.18 As required by Section 27 of the Severn
Bridges Act, I am laying these accounts before Parliament.
December 2010
18 Not printed.
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