HGV Road User Levy Bill (Ways and Means)

Kwasi Kwarteng Excerpts

Tuesday 23rd October 2012 Commons Chamber

[Kwasi Kwarteng (Spelthorne) (Con)]

I am happy to make my contribution to this somewhat technical though important debate. It is gratifying when matters contained in the manifesto or the coalition agreement have been acted on and we, as the governing party as part of a coalition, have delivered on our commitments. This is an instance in which we can be proud of ourselves for having delivered. It is bizarre, as the shadow Minister said, that we have been talking about this for more than 20 years. It seems a rather long time to be discussing something as technical and clear cut as this.

I fully support the levy. It will level the playing field. My constituency is dependent on good transport infrastructure. Spelthorne is very connected to Heathrow, but it also has links with the M3 and the M4 and it is within the M25. This legislation is exactly the kind of thing that haulage businesses in my constituency and neighbouring constituencies want to see. It sends a signal; they see a Government who are very keen on promoting business and enterprise and who are willing to defend the interests of British business against competition, which is laudable. For too long, British firms have been paying road tolls abroad while foreign operators were largely exempt from such taxation in the United Kingdom. It boils down to a simple proposition: is it right that foreign operators do not contribute to the maintenance of the roads they use? Contribution to the upkeep of the roads is not even a competition point; it is simply a matter of equity.

With regard to hypothecation, I am keen that the money that goes into the capital fund stays within the Transport budget, particularly the roads budget. I was lucky enough to go on a Transport Committee trip to Switzerland, where we saw the rail infrastructure and how it was financed. Rail infrastructure in that country is determined by hypothecated funds raised from taxation. That seems a good principle for the funding of infrastructure, and gets rid of any need to borrow money. The Swiss have a balanced budget at every stage of their infrastructure development. I am not making a party political point, but given our recent experience we could learn considerably from that funding model, so I am pleased that we have set aside a fund. I urge the Minister to be scrupulous about using the money for roads.

Everyone knows that haulage services are important to the smooth functioning of the economy. The transportation of goods is exactly what we as an advanced economy should be fostering. I am pleased that members of the Road Haulage Association are keen on the legislation and that we have managed to satisfy their concerns.

Generally, the measure is a step in the right direction. I hope the Minister will clarify some of the points and queries raised by Members on both sides of the House; it is rare that we come together to agree on something that will be helpful and useful to all our constituents and to the wider interests of our country.

--- Later in debate ---

[Huw Irranca-Davies]

The hon. Lady makes a good point. It is not a case of us being winners. I think the hon. Member for Spelthorne slightly misspoke earlier when he talked about putting protection in place. As the hon. Lady says, it is not to do with protection for us, but with creating a level playing field. I am sure the hon. Gentleman did not intend to suggest that we want fortress mechanisms; it is about getting a level playing field.

[Kwasi Kwarteng]

As an attentive observer of and participant in our debates, the hon. Gentleman will appreciate that in my speech I suggested that foreign operators should contribute to their use of the roads. That is the best argument in favour of the legislation.