National Alliance Against Tolls - Forth Toll Increase - NAAT Submission to Inquiry December 2004

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FORTH TOLL INCREASE - NAAT SUBMISSION TO INQUIRY - December 2004

Introduction

  1. The National Alliance Against Tolls (NAAT) was formed by groups protesting against existing tolls in England, Scotland and Wales. In Scotland it includes Skye & Kyle Against Tolls (SKAT) opposing tolls on the Skye bridge and others opposing introduction of tolls to Edinburgh. We are in contact with Mr Campbell and Fifers Against Toll Increase (FATI) who are opposing the increases in the toll on the Forth Road Bridge.


  2. Adam Smith dealt with the issue of tolls in the "Wealth of Nations". As he came from Kirkcaldy he may be taking an interest in this inquiry which mainly affects Fifers. We believe what he said is still relevant:-

  3. 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.
    The facility with which a great revenue could be drawn from them would probably encourage administration to recur very frequently to this resource."

  4. Nearly all the significant tolls that exist today are relatively recent. Apart from the M6 toll and the London Congestion Charge, they are on estuary or sea crossings. Though there is inconsistency, as there are about 100 road crossings of tidal waters in Britain, and only 13 of them are tolled. Four are in Scotland.

  5. Most of the tolled crossings were tolled on the basis that they would become free when the initial construction cost had been recovered. As Adam Smith predicted, they are seen by governments as too good a revenue to let go.


  6. We believe that there should be no tolls. Where they do exist the arguments against tolls apply even more strongly where it is proposed to increase them to finance expenditure which was not intended when the toll power was granted.


  7. Why Tolls are Bad

  8. They are unfair. Road users already pay considerably more (over £40 billion) in taxes than is spent on the roads (£7 billion). People that frequently have to use a tolled crossing feel that they should not have to pay more. Tolls are a random patchwork quilt, based on the accident of where you live. Tolls tend to be regressive. A poor person pays the same toll as a rich person. The driver of a small car pays the same as the driver of a large car. As most jobs and national facilities are on the south bank, they are particularly unfair to Fifers who are more likely to have to cross the Forth.


  9. They inhibit economic activity in the areas where they are situated. Businesses where road transport is important will prefer to locate elsewhere. The Highland council commissioned an "Economic Impact Study" on Skye bridge tolls in 2002. The study by Napier University concluded that there would be an increase of 6% in jobs if the tolls were abolished.


  10. They cause delays and queues at toll, and tend to prolong congestion periods as traffic is on the road longer than it would otherwise be. During this summer's hurricanes, some Florida tolls were suspended to speed traffic.


  11. They are unwanted by road users. Not surprisingly an RAC Foundation survey earlier this year found that most drivers rejected road charging. Where there is a choice, drivers will tend to avoid toll roads and use other roads, possibly with longer journeys and more fuel consumption.
  12. No Need for a Toll Increase

  13. The original basis for tolls on the Forth Road Bridge was that they would finance part of the construction cost, fund a reserve of up to £1.5 million, and pay for maintenance, tolling and administration cost during a finite period. At the end of that period the responsibility for the maintenance and administration of the bridge would be that of the authorities, there would be no tolls.


  14. On the original basis there should now be no tolls, but the tolling period has been extended several times. In 2002, a statutory instrument apparently gave the power to spend the tolls on schemes and measures which FETA considers appropriate to reduce congestion on the bridge or encourage the use of public transport to cross the river. There is doubt that this use of an SI to change the purpose for which tolls can be used is legal. FETA budgets and accounts show capital / non recurring expenditure on non bridge purposes. We have asked FETA how much of their revenue / recurring expenditure has been on non bridge purposes. They have told us that the amount is "not material", but have not said how this was assessed.


  15. Toll income on the bridge is some £10 million a year, and the Bridge costs about £2 million a year to run and maintain. Collecting the tolls, if allowance is made for a charge for equipment etc probably costs about £1.5 million. This leaves £6.5 million a year plus a further £0.5 million of interest income to spend on administration, non recurring bridge repairs and the various activities that are not related to the current bridge including plans for a possible second bridge. We asked FETA about the cost of planning for another bridge but have not yet had an answer.


  16. It appears that FETA don't need a toll increase to pay for the present bridge. And this is before Reserves are taken into account. At 31 March 2004, FETA had a Revenue Reserve of £17.6 million. If this was just spent on the bridge then tolls would, under the original basis, have already stopped.


  17. FETA indicate that there is a need for massive reserves in order to fund future capital expenditure and to meet unforeseen expenditure. It is not normal for a local authority to have such massive reserves. Capital expenditure is usually spread over future years through the mechanism of borrowing. FETA mention the Prudential Code for Capital Finance in Local Authorities. That Code relaxed the previous borrowing controls, and gives local authorities power to borrow where they think it is prudent. If there were to be some major disaster, then it would be expected that authorities would receive help through the Bellwin scheme. In any case, it is not appropriate to seek a toll increase many years ahead of possible need, and it does not apply anywhere else.


  18. FETA is to spend nearly £30 million on the M9 spur / A8000 upgrading. This scheme was originally developed by the Scottish Office and was included in "Travel Choices for Scotland: Strategic Roads Review". It has been described as fixing "a missing link in the strategic road network". It is doubtful that Bridge tolls were ever intended to be used for this purpose.
  19. Toll Increase Not Appropriate at this time

  20. In May 2003, A "Partnership for a Better Scotland" was published. It said that there would be a review of existing bridge tolls. On 22 April this year Helen Eadie asked Nicol Stephen ".. will the minister have regard to the fact that the capital costs of building the Forth road bridge were repaid in 1996? Will he further note the economic situation in Fife, where the level of unemployment in central Fife is acute and is higher than in many other parts of Scotland? As one of the solutions to the problem, will he hear my call for the Forth road bridge tolls to be abolished as an outcome of the review?" The minister replied that ".. all those issues will certainly be taken into consideration as part of the review". The Minister has since said that the review would be in 2 phases, with the first part due "this Autumn". The government has already promised that the tolls on the Skye bridge will be removed this year. The recommendations on the other 3 tolled crossings are not decided. It is inappropriate that FETA are going ahead with an unnecessary, inessential, non-urgent toll increase application when there is a question mark over the future of the toll. It is also surprising that according to reports at the beginning of November, FETA signed a contract under which up to £4.8 million will be spent on new tolling equipment.


  21. There are proposals at the moment for tolls in Edinburgh. Unlike the Forth Bridge tolls, the people will determine whether this will go ahead or not. But assuming it does go ahead, questions were raised in the Scottish Parliament about the discriminatory effect on Fifers. It is inappropriate for FETA to be going ahead with this application when it is not known whether there will be an Edinburgh toll, and what its effect will be on the Forth Bridge and Fifers.


  22. Effect of tolls on Bridge Use

  23. FETA have suggested that the flow of traffic on the bridge is not affected by the toll booths. This runs counter to common sense and experience elsewhere. Traffic slows down as it approaches toll booths, even where electronic charging is in use. During peak periods this is the main effect of tolls, as they do almost nothing to deter those travelling to work. In June it was reported that toll collection on the Tay Bridge may be moved to the south side, due to queues at toll booths in the evening peak which in the words of the Dundee Courier "stretch all the way round the ring road" .

There is a bridge over the Mersey at Runcorn. The bridge was completed in 1961 with 2 lanes, but was modified in 1972 to 4 lanes, i.e. the same as the Forth. It carries about 5 million more vehicles a year than the Forth Bridge.

The Runcorn bridge is not tolled.

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