Severn Bridges

John Hayes Excerpts

Tuesday 31st January 2017 Westminster Hall

[The Minister of State, Department for Transport (Mr John Hayes)]

It is a pleasure to serve under your chairmanship, Mr Davies.

Dickens said:

“An idea, like a ghost...must be spoken to a little before it will explain itself.”

The hon. Member for Newport East (Jessica Morden) has certainly spoken to and about this idea on many occasions, including today, and I congratulate her on taking the opportunity to make the case that she has made before once again. Relatively recently, in July 2015 in this Chamber, she raised these issues and asked the Government to do many things. I will address as many of those issues as I can in the time that I have available. As is inevitable on these occasions, I have a pre-prepared script written for me by my officials, which will inform me, but I will not be constrained by it. As I have said before, I feel it is important in Westminster Hall debates to answer the points made by hon. and right hon. Members and not simply to parrot what I could have said regardless of their contributions.

[Geraint Davies (in the Chair)]

I am sure that is very welcome.

[Paul Flynn]

Will the right hon. Gentleman elevate himself to a star in the political firmament by abandoning his pre-prepared script and answering the debate? It would be a rare and delicious experience for us.

[Mr Hayes]

I was hinting at that already and I have done so many times previously. Although I would not claim to be the shiniest of stars, I am starlike—at least, that is how I would describe it. In that spirit, I will deal with some of the—I will not say inaccuracies because that would be too unkind—exaggerations in the hon. Gentleman’s grasp of history. Let us start with when the tolls began. He brings—I do not blame him for this for a second—a certain tribal prejudice to these things and he ascribed the tolls to those he characterised as Tories. He knows, however, that the tolls were first introduced in 1966.

I wonder whether any Member present in the Chamber could remind me of who was in government in 1966. I recall that it was a Labour Government who, when the bridge was first opened, cemented tolls as a means of partly funding the cost of the development. In fairness to the hon. Member for Newport West, he said the Welsh would have accepted any deal at all, but he did not say that they would have accepted any deal from the then Labour Government, and tolls began at the inception and have continued since. The Chamber will recall that it was a Conservative Government that pegged the tolls in 1992. You will remember the 1992 Act, Mr Davies, which says the tolls can rise only in line with the retail prices index. Indeed, they have risen since then by only that amount.

Before I move on to the main substance of my remarks—I do not want to short-change any hon. Member by not dealing with the specific questions that they raised—I have one other historical matter to deal with. The Rebecca riots, which began in 1839 as the hon. Member for Newport West said, concluded in 1844, as he will also know, for several reasons. It is true that extra troops were deployed to dissuade those who were rioting from taking action against the tolls; it is true, too, that many of those who were causing disturbances resisted the violence that some of their compatriots recommended; but it is also true—the hon. Gentleman will want me to fill the gap and add to the quality of his account—that criminal gangs became involved in the riots. They used the disguise of the original complaint of the rioters to engage in all kinds of malevolent activities. That is the full account of the Rebecca riots for those who are interested in the history of such things and want an unabridged, uncorrupted and balanced account of those events.

[Paul Flynn]

It depends how we look at history. I once read a book that asserted that only the future is certain, but the past is always changing. We have just seen an example of that and of somebody rewriting his own history. However, it is a matter of great honour and pride to us in Newport that in 1839 the last Chartist riot took place in order to set up a republic. We have week-long celebrations every year. That is our view of history and the Chartist riot was contemporaneous with the Rebecca riots. It was a glorious start to socialism in this country and throughout Europe, and something of which we are very proud. Of course, there is a black history interpretation whereby people with a Conservative mood of mind try to fictionalise those great events, but they were heroic and it is time to bring them back.

[Geraint Davies (in the Chair)]

I confirm this is in order because it is a bridge to the future.

[Mr Hayes]

I did not want any historical inaccuracy—I have used the word now—to stand on the record uncorrected. I know you would not have wanted that either, Mr Davies.

I want to turn now to the specific matters relating to the Severn crossing. The hon. Member for Newport East generously acknowledged at the outset that we have begun the consultation that was promised previously. In the debate that I referred to in 2015, she referred to

“the need to offer some light at the end of the tunnel for my constituents.”—[Official Report, 21 July 2015; Vol. 598, c. 436WH.]

That is part of the reason why she secured that debate then when she sought further progress on the character of tolls, which I will try to address today. She will know that the current consultation invites contributions on a range of issues, many of which have been raised here. It is a real consultation, and we are genuinely open-minded about how we move forward. The Government have made some proposals, as was also said. None the less, to be meaningful, the consultation has to respond to consultees’ ideas and thoughts. We have not come to any predestined conclusion, and I will take into account the various comments that have been made.

I want to deal with five matters. First, on the amount of the toll, the hon. Lady and other hon. Members will know that we have proposed effectively to halve the toll by reducing it to £3. She will also know that that will be welcomed widely by regular users of the route, for any reduction of that scale and size is bound to be welcome. However, the hon. Lady asked for more detail on traffic flows. That is a perfectly reasonable request and I will make more information available following today’s debate. It is important that we gauge the effect on traffic flows of any changes we make both in the toll and in the way it is collected.

There were changes to traffic flows—I discussed this before the debate—when we changed the tolling system at the Dartford crossing in Kent. We believed that if we could automate the process it would improve the flow of traffic and ease congestion and so on. If we were to make that change at the Severn crossing—we are consulting on that and people will offer views—it is important that we gauge the likely effect on the convenience of travellers. The hon. Lady is right to ask about that and details will be provided.

The hon. Lady also asked us to break down costs in greater detail, and that is also a reasonable request. There are a variety of costs. My hon. Friend the Member for Montgomeryshire (Glyn Davies), who always speaks with great authority on all matters to do with Wales—indeed, on all other matters as well—said that a balance has to be struck. A perennial debate on river crossings—bridges and other structures—is how much the Exchequer and the user should each contribute. That debate continues almost wherever some fee or charge is made. It is easy to describe it as double taxation of those concerned but, my goodness, we could say that of any charge that is made for any public service. I do not think that we should want to characterise every charge made to every taxpayer as double taxation. That would be crude and even—dare I say—a little crass.

[Glyn Davies]

rose—

[Paul Flynn]

rose—

[Mr Hayes]

I will give way first to my hon. Friend.

[Glyn Davies]

Does the Minister accept that many, like me, will be concerned about the issue? A huge number of road schemes in Britain are in need of development, for the benefit of the relevant parts of the country and the economy. That is hugely important—it is vital. However, if we cut off the possibility of part-funding through user contributions, we will not be able to provide all those schemes. I use one in the west midlands every time I go home. It will be damaging to the British economy if we take a view that there must be no tolls at all.

[Mr Hayes]

That was the point that I was making—less concisely and persuasively than my hon. Friend. As I said, the debate is perennial; we have such a debate about nearly every kind of fee or charge, for every public service. I suspect that the answer—and I hate to sound tediously consensual—is that a balance has to be struck.

[Jessica Morden]

Tolling at £3, in part, to pay back the £63 million cost to the Government of the latent defects on some of the bridges, when the Government have in fact recouped more than double that in an unexpected tax windfall, seems especially unfair—particularly when the Government stepped in and wiped £150 million off the Humber debt. Does the Minister appreciate how strongly people feel about that?

[Mr Hayes]

The reason I said I wanted to break down the costs is that, as the hon. Lady will understand, as well as a capital cost to be recouped in the form of a debt, maintenance costs are associated with any crossing of this kind. She will be familiar with the details of the Severn Bridges Act 1992, which makes it clear that those costs can be included in any tolling system through to 2027. The operational, maintenance and servicing costs are real, and are borne by those who pay for the crossing through tax and tolls. As I have described, a balance has to be struck, and that is why the Government are engaged in consultation in response to calls from the hon. Lady, among others.

Having been slightly unkind to the hon. Member for Newport West, I will mention that he has longer and more profound experience in this context even than that of the hon. Member for Newport East—certainly than mine; I pay tribute to the fact that both hon. Members have been consistent in advocating their constituents’ interests in making their case about the crossing. I hope that they, in similar good faith, will recognise that I will do my best to bring about a reasonable and fair outcome to the consultation, which will guarantee the interests of all concerned into the future.

[Paul Flynn]

How was the £3 figure arrived at? What are its components? Past examinations have suggested that there is no way that future costs would make it anything like that. Is not it true that the Wales Office has lost out to the Exchequer? The Treasury has said, “We want to continue to use the bridges as cash cows for as long as we can.”

[Mr Hayes]

The £3 cost brings the charge much more closely into line with the Humber estuary, the Dartford crossing, and so on; but none of those figures is magical or derived from a mystical process. They are designed to reflect the real costs of running the crossing—the operational and maintenance costs and the capital costs over time. I have already conceded in the third of my five points—you will remember, Mr Davies, as you follow such things assiduously, that I said I would make five points—that I would break down the costs further. I am happy to do so, in the interest of being straightforward in this debate and in the consultation.

It is true that businesses on both sides of the Severn have long called for reductions in tolls—thus our response, in the form of the consultation. The crossings will of course return to public ownership early in 2018, so this is the right time for what we are doing. The main proposal is to abolish the toll category for vans and small buses and halve the tolls for all vehicles. That 50% reduction should not be disregarded and I know that the hon. Member for Newport East would not want it to be.

[Jessica Morden]

The Minister just referred to the handover in January 2018. Can he be specific about the date? The consultation ends on 10 March. Presumably in October a car will drive through the Severn bridge toll plaza and the revenue target will be hit; what happens then? Potentially, with a handover period, businesses that can now reclaim VAT might be unable to do so. If the handover is not until January 2018 will there be an increase then, as there has been every year?

[Mr Hayes]

The hon. Lady is right to say that we need to set out the process, and that responsibility will pass to Highways England. The fourth of my five points is that it is important to be clear about how Highways England will manage the process. She asked particularly whether others will be involved and Highways England will contract the responsibility. That will of course partly depend on the results of the consultation. If we move to a free-flow system, like the one at the Dartford crossing, it will have implications for organisation and management. Fewer people will be involved at the crossing and more behind the scenes, and there will be advance booking as happens at Dartford, with an account-based system that will hopefully help traffic flow. That will require us to set out, following the consultation, the further steps necessary for the handover. I am happy to do that, but I do not want to pre-judge the consultation.

There are arguments for maintaining cash payment; I will be blunt about that. When we debated Dartford, the first time I was in the Department for Transport, we considered that closely because a cash system is simple and straightforward; but there are disadvantages—particularly the delays. Evidence from places in this country and abroad shows that automated systems can be highly effective, can be properly managed, and can offer considerable benefits, particularly to regular and business users. We will set out the transition process and it will to some degree depend on what we do about future toll collection.

The fifth point that I want to make is to express thanks to those involved over time in managing and maintaining the crossing. It is right that in any changes that take place we recognise the contribution that people have made to running this important crossing, which is a vital piece of UK infrastructure. It has benefited road users from England and Wales for 50 years, it is used by more than 25 million vehicles each year and it has provided road users and businesses in England and Wales with exceptional savings in time and money since the first crossing helped to connect the economies of both countries in 1966.

I enjoyed the story about the ferry, although I am not sure I was meant to enjoy it. It sounded like a hazardous—indeed tortuous—business, and I imagine that those who can look back on that will recognise just what a difference the crossing has made. As we now consider the next steps, it is important that we take account of the effects they might have on all of those involved in the process, and I wanted to do so publicly.

Let me summarise my response. I repeat that we have no preordained view about how this matter should unfold. It is important that these debates inform thinking, and they certainly do in my case. There is a strong argument for making as much information available as possible to Members of this House and more widely along the lines requested throughout the debate across the Chamber, and we will do so.

If the debate does no more than all of that, it will have achieved a great deal, because it has persuaded this Minister—if he needed persuading—not only of the importance of the matter but that we need to move ahead with as wide agreement as possible about the kind of tolls charged, the effect they have on people, the methodology that we employ and the steps we will take to manage that process. All of that will happen, and the hon. Member for Newport East can be proud of yet again representing her constituents and others so admirably.

As a postscript, the hon. Lady and the hon. Member for Newport West can be pretty sure that my references to the pre-written script were as slight as the hon. Gentleman had hoped.

[Geraint Davies (in the Chair)]

We will finish where we started: I call Jessica Morden to wind up briefly.

[Jessica Morden]

Thank you for ably chairing the debate, Mr Davies. My thanks to all hon. Friends who took part and in particular my hon. Friend and neighbour the Member for Newport West (Paul Flynn). May I thank the Minister for his response and in particular the points about the staff who work on the Severn bridges, whom I mentioned?

I thank my hon. Friend for pointing out forcibly that we do not feel that the Government are being generous in their offer. For years, excessive tolls have been charged to people making essential journeys and we feel strongly that it is time to right that wrong. I worked out that this is about the 87th time I have spoken about the Severn bridges in my time here in questions and at other times. As the concession is nearing its end, the impression is that the Government have been dragging their feet. For instance, we expected the public consultation last autumn and it has taken its time.

[Mr Hayes]

I am sorry to interrupt the hon. Lady. I have spoken already, but I omitted to pay tribute to the Under-Secretary of State for Transport, my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones). Were it not for him and his role in this matter—I mention him because he answered the debate last time round—I do not think we would have moved as quickly as we have. He has been determined to ensure that we responded properly to the hon. Lady’s concerns. It is not I but he who deserves the credit for any progress that has been made.

[Geraint Davies (in the Chair)]

That sets a precedent—an intervention on a wind-up.