Severn Bridges (Tolls)

Mark Williams Excerpts

Tuesday 21st July 2015 Westminster Hall

[Jessica Morden]

I agree with my hon. Friend wholeheartedly. As I remember, it took a joke on “Gavin & Stacey” and the approach of the Ryder cup for things to get to where they are now. It was like pulling teeth trying to get the decision taken to accept card payments. I will come back to that point, but I agree that we need to consider free-flow technology, which would help the congestion in the run-up to the plazas.

Over the years, various Ministers have argued in their responses to debates like this that the impact of the tolls on the Welsh economy is not clear, but we know from the Welsh Government’s 2011 report that the total cost to businesses and consumers, once VAT is taken into account, is in excess of £80 million a year. Furthermore, they came to the tentative conclusion that removing the tolls could boost the Welsh economy to the tune of around £107 million.

[Mr Mark Williams (Ceredigion) (LD)]

I congratulate the hon. Lady on securing this debate, and on talking about the Welsh economy as a whole. When the Federation of Small Businesses undertook a significant inquiry, “The Severn Bridge: Taking its toll on the Economy?”, it did not restrict its work to the economy in south Wales, but looked further west to Swansea, Carmarthenshire, Pembrokeshire and parts of my constituency, Ceredigion. Will the hon. Lady emphasise the effect of the tolls on the whole economy?

[Jessica Morden]

The hon. Gentleman is quite right. Although the effects are probably felt most keenly in my constituency and that of the hon. Member for Monmouth, the knock-on effect along the M4 corridor and beyond, and up towards places such as Ceredigion, is immense, particularly for businesses using that route.

--- Later in debate ---

[Chris Evans (Islwyn) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Gray. I congratulate my hon. Friend the Member for Newport East (Jessica Morden) on securing the debate. In the hours she has spent on this issue I am sure she could have walked to the Severn bridge and back. I had to check for a flying pig when the hon. Member for Monmouth (David T. C. Davies) was speaking; I did not think I would ever hear him advocate nationalisation with a straight face and without coming out in a rash and a cold sweat. I also congratulate the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) on a speech that, once again, raised the ghost of Rebecca—he will know what I mean.

When the Severn bridge was debated in Parliament back in November 1990, it was spoken of as a link between Wales and the south-west of England, laying the foundations for greater growth for both, helping develop both economies to the benefit of all and providing the infrastructure Wales needed for internal and international trade. Today, sadly, the Severn bridge stands as a barrier to business. The tolls on tourists, on trucks transporting goods and on people travelling for work and for leisure are holding Wales back in an ever-increasingly competitive economy.

The Severn bridge is costing Wales a fortune. Tolls do not make sense for the people who have to pay to see relatives and friends or for the companies who lose hundreds of thousands of pounds each year. Put simply, they do not make sense for Wales. One study put the potential growth of the Welsh economy if tolls were abolished at £107 million a year. To put that in context, the bridge costs £15 million a year to run and raises £87 million a year in revenue.

The tolls are not just holding back potential growth; they are actively encouraging companies to base themselves in the Bristol area and the rest of the south-west rather than coming to Wales, where they are needed. That costs us in employment, taxes and, above all, prosperity. Per mile, the Severn bridge remains the most expensive toll road in the world to travel on, a record no one should be proud of. It is significantly more expensive than the Humber bridge and the M6 toll; it is even significantly more expensive than the next closest international example, the Akashi Kaikyo bridge in Japan—I should get a badge for pronouncing that.

The argument against the tolls is clear. I am pleased to note that, thanks to the work of my hon. Friend the Member for Newport East and others, the Chancellor has to some extent bowed to the pressure, as the category 2 tolls were ended in the March Budget. That was the beginning of the process, but it has been a slow one, and so more must now happen. The Government must once again accept what is needed to boost growth across Wales. Will the Minister say today that VAT will be removed from all tolls on the Severn bridge once it enters public ownership? That call comes not just from me, but from both sides of the House—the hon. Member for Monmouth called for it in his speech. It is eminently sensible, and I hope the Government listen to the Chair of the Welsh Affairs Committee. Conservative Members of the Welsh Assembly have also joined their voices to calls for a cut in the toll.

Beyond the political world, business leaders are also crying out for the change. In my constituency and in those of other hon. Members right across Wales, it is what business wants. I struggle to see why the Government will not commit to the change once the bridge enters public ownership. It is what businesses in Wales need.

[Mr Mark Williams]

Will the hon. Gentleman take the opportunity to reiterate the importance of the tourism sector? There has traditionally been a flow of people between the south-west of England and all of Wales—not just the south, but mid and north Wales. A speedy removal of VAT or, better still, scrapping the tolls would give a direct and immediate boost to the tourist sector in Wales.

[Chris Evans]

I agree entirely with the hon. Gentleman. He does great work as chair of the all-party group on the tourism and hospitality industry in Wales. The hon. Member for Strangford (Jim Shannon) mentioned that in Northern Ireland there are no tolls. The Irish have been very good at selling their culture, and telling people to come to Ireland to see the fantastic beaches. How can we do that in Wales if we have a tax on friends and relatives coming to see how great Wales is? When we think of business, we tend to think of heavy industry and rarely think of tourism. I represent a valleys constituency and have always believed that we do not talk up enough the beautiful valleys in Wales. The hon. Member for Carmarthen East and Dinefwr also represents a beautiful part of the country. How can we ask people to come to our constituencies if they are faced with what is clearly a tax when they get to the Severn bridge?

It is time to end the tax on entering Wales that the Severn bridge toll has become. The Conservative party often talks about its desire to rebalance the economy away from London and the south of England, to spread prosperity to all regions. There is merit in that idea, and I agree with it. The Minister today has a chance to put those words into action.

There are not many issues in our politics that unite the Labour party, Plaid Cymru, business, tourists and the Conservative party—the hon. Member for Monmouth sometimes stands alone in the Conservative party—and even rarer are issues that unite north and south Wales, but this is one. The bridge stands as a barrier to trade and growth. I do not often quote or paraphrase Ronald Reagan. He said:

“Mr Gorbachev, tear down this wall.”

I say, Minister, tear down this toll.