Press Notices

28.10.03:
Plan offers motoring benefits for Wales

A new way of paying for road use could slash traffic congestion in Wales, shorten journey times and cut costs for rural motorists, Professor David Begg the Chair of the Commission for Integrated Transport said today.

Under a Commission scheme first put forward almost two years ago, fuel duty would be reduced and VED eliminated with the revenue shortfall made up by congestion charging on the busiest roads at the busiest times. When and where there is no congestion, no charge would be made.

CfIT research has found that this could cut traffic congestion by almost half (44%) without raising a single extra penny for the Exchequer.

Almost everyone would be a winner. People who used the quietest roads at the quietest times would get a significant reduction in their motoring costs. At the same time, those wanting to use the busiest commuter routes during the rush hour could expect to pay more but would have shorter and more reliable journeys.

Professor Begg said that while there were initiatives to improve the current road network, the RAC Foundation had shown that given the expected traffic growth we would have to either have a road building programme five times the size of the current one, lasting 30 years, or raise fuel duty fivefold just to stand still. Neither is practically or politically deliverable. Importantly, the Government has recently announced that it is to study the feasibility of introducing road charging.

Professor Begg said: "Motoring taxes at the moment are a very blunt instrument. This initiative has real potential for Wales partly because there is less congestion here and will therefore face lower charges. Our modelling shows traffic levels would be cut by around 10% in our inner conurbations and large cities.

"Rural areas suddenly become cheaper and more efficient places to live, work and do business in.

"It offers the chance to breathe real economic life into these communities and make them more competitive. At the margins, it will help inward investment, encourage tourism and exert downward pressure on the prices we pay for goods and services.

"Wales is very well placed to benefit from CfIT's initiative which is backed by the CBI, the RAC Foundation and the Freight Transport Association. It is based on the use of satellite technology, monitoring when cars were driving on congested roads and levy a charge dependent on the level of congestion at the time.

"Far from being an extra burden on motorists, the scheme is designed to spread the time of travel, creating clearer roads and shorter and more reliable journey times."

"Although our proposals are some 10 to 15 years off, some Welsh cities, such as Cardiff, are already being hit by traffic congestion and this is forecast to only get worse.

Under CfIT's proposals, Wales's largest urban areas such as Cardiff and Swansea would face peak charges of up to 12.6p a mile - less than many bus journeys. This would compare with a peak charge of 54p a mile in London.

Professor Begg said: "In rural Wales this initiative would particularly help social inclusion and the one third of individuals earning under £10,000 a year who have to run a car. Their motoring costs would continue to make up a very high proportion of their income but it would be a move in the right direction."

Notes to editors:

1. Examples of how rural motorists would benefit from CfIT's proposals:

Joe drives a tanker and travels around 50,000 miles a year collecting milk from local farms. He never drives in congested city centres nor on busy motorways, but he does drive through some busy town centres and trunk roads and so he pays around £500 a year in congestion charges.

However, because of his mileage he gains from a significant reduction in his fuel costs, over £4,500 in a full year. His overall operating costs are reduced by about £4,000 a year. This extra profit allows Joe to expand his business by buying another tanker and employing another driver. He takes on more customers, but is still able to spread the workload a bit, meaning that Joe can take an extra holiday with his family.

Sarah lives in a village and works around 16 miles away. There is not much congestion in the town where she works and the charge is small. Over the course of the year, she spends around £60 in charges for this journey, but saves around £200 in lower fuel costs.

Barbara lives in a small village and drives less than 3,000 miles a year, mainly for short trips in or near the village. Occasionally she travels further distances but, as Barbara is retired, she can avoid travelling at busy times of day. She does pay some congestion charges amounting to around £14 a year, though these are more than compensated for by £100 or more savings a year, if the congestion charges were used to fund reductions in VED.

2. The CfIT study covered all areas in England and used the same measure of congestion as the Government used for its 10-Year Plan. What our results show is that traffic levels would fall overall by about 5% and speeds would increase on average by about 3%, with significantly greater changes in areas suffering the worst congestion. The incidence of gridlock would also be expected to reduce significantly and reliability would improve.

3. Report: Paying for road use.