Severn Bridges

Jessica Morden Excerpts

Tuesday 31st January 2017 Westminster Hall

[Jessica Morden (Newport East) (Lab)]

I beg to move,

That this House has considered future operation of the Severn Bridges.

It is a great pleasure to serve under your chairmanship, Mr Davies. I welcome the select band of hon. Friends who are here today, while other business is on in the main Chamber.

On 13 January the Government announced their consultation on the future management of the Severn bridges. We were promised it in the autumn, with the Government saying it would be about a year to go until the handover, but better late than never. I have called this debate in part to recognise that the Government have moved some way towards recognising how hard hit we in south Wales have been by the level of tolls, although they have not gone far enough—I will move on to that later—but also, crucially, to get more clarity from the Minister on what the Government are planning when, at long last, the Severn bridges concession ends. We need that clarity because there is not long to go now; Severn River Crossing could reach its revenue target in October this year and the Government consultation ends on 10 March. Now that the concession is drawing to a close, this is the first opportunity that Members have had in 25 years to shape the new regime for the benefit of our constituents and businesses.

[Nick Thomas-Symonds (Torfaen) (Lab)]

Does my hon. Friend agree that this is the moment to have a strategic plan? Action on the inequity of the tolls is long overdue, but we also need to look at the future of the jobs for those who work in the toll booths and at the general management of traffic, bearing in mind the proximity of the Brynglas tunnels. There has to be a strategic approach.

[Jessica Morden]

My hon. Friend is absolutely right. This is a critical stage to get this right for the future. Given the inflexibility of the 1992 legislation, it is important that we scrutinise the plans now and future-proof them so that we will not need to unpick things in years to come, for example because we had not thought about vehicle categories. That is a very important point. We must be able to shape the new regime for the benefit of our constituents and businesses. I agree that we will want to get that right.

[Mr Mark Williams (Ceredigion) (LD)]

I congratulate the hon. Lady on securing this debate again; she has had many debates on the topic and I have made the same observation, but I want to say it again. Does she agree that the need to get this right for the business community extends way beyond south Wales to the west of Wales, mid-Wales and the north as well? It is critical that we get this right for businesses right across the country.

[Jessica Morden]

The hon. Gentleman is absolutely right; this issue has ramifications for the whole economy of Wales, in south Wales and beyond, including his constituency. I thank him for being here today and for making that point.

Getting more clarity about the direction of travel is important for my constituents who commute, the businesses that do business across the bridges and those who work on the bridges. In recent years those people have had to suffer the highest toll in the UK, and commuters have just had to absorb the annual increases, however unfair they are. Constituents have had to turn down job offers because the toll is equivalent to nearly an hour on the minimum wage. Just this morning I received an email from a constituent, who said:

“The tolls add a considerable amount to the cost of travel to Bristol, where a lot of attractive jobs for young graduates like myself exist. Many of my friends who have graduated from university recently and are looking for a job fail to look at Bristol because in my opinion, the toll gives…the impression that Bristol is out of reach, even though in actual fact, travel time is not much more than to Cardiff.”

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I pay tribute to my hon. Friend for securing this debate and for the campaigning she has done on the issue, along with so many of us. She is absolutely right to mention Bristol. I have heard again and again from businesses and individuals in my constituency who trade across the Severnside area, particularly in the creative industries. We have people working in the BBC drama village in Cardiff Bay and the BBC natural history unit in Bristol. Does my hon. Friend agree that sorting out the tolls is absolutely crucial to growing and strengthening that creative economy?

[Jessica Morden]

My hon. Friend is right. House prices in Bristol mean that more and more people are choosing to live in Severnside, Monmouthshire and Newport and to commute. Our local economy is interlinked with Cardiff, but also with Bristol. It is incredibly important that we do all we can to support that growth.

[Nick Smith (Blaenau Gwent) (Lab)]

I congratulate my hon. Friend on securing this debate and making a powerful argument for reducing the tolls across the Severn to Bristol. Does she agree that we must also improve train services between east Wales, Bristol and the west country? That would also help jobs in our area.

[Jessica Morden]

I thank my hon. Friend. He anticipates a point that I was going to make later in my speech about cross-border travel and the capacity of our rail services for those who commute to Bristol and beyond, which is clearly inadequate. When we are looking at tolls, we need to consider the wider picture and take a more holistic view of our transport networks.

Businesses, especially those in logistics and the provision of services, are trying to compete with firms in the south-west that do not have to factor in the toll, and they are losing out. Some businesses in my constituency are hit by up to half a million pounds a year, which just has to come off the bottom line. At present there are no effective discounts or incentives for off-peak travel. The arguments have been well rehearsed over many years, but it is worth reiterating just how hard people have been hit and therefore how strongly they feel about the issue.

The Severn crossings are a key link in our transport and economic infrastructure as part of the M4 corridor—the gateway to Wales—which allows access to markets in the UK, but also as part of the E30 route. As has been said many times before, the Severn tolls have been a tax on Welsh business and commuters. I recognise that the Government have gone some way towards acknowledging that. They announced in January that tolls could be reduced to £3 for cars and vans and £10 for lorries when the concession ends, but the message from many of my constituents and businesses is that the Government are not going far enough.

I want to thank the many constituents, businesses and groups, such as the Freight Transport Association, that have worked with me, other hon. Members and the Welsh Affairs Committee over the years on this campaign. I also thank the Under-Secretary of State for Transport, the hon. Member for Harrogate and Knaresborough (Andrew Jones), who attended the Severn bridges summit that I organised with the FTA here last year, so that the people affected could put their views to him directly.

As my hon. Friend the Member for Torfaen (Nick Thomas-Symonds) mentioned, we should also pay tribute to the maintenance and toll staff, who are incredibly hard-working and knowledgeable about the Severn bridges. I hope that the Minister will ensure that they have a key voice in future decisions, because they have the expertise that we need and that we must keep. I urge him to ensure that there are regular meetings with management and staff so that they are fully informed of announcements and discussions. We should acknowledge that it is a sensitive time.

On tolling, the Government have announced that they will seek to reduce the tolls and that they will use the toll revenue for operations, maintenance and debt repayment. The Minister will be aware that there is a strong consensus in the Welsh Assembly, the Welsh Government and among many users of the bridges that the tolls should be scrapped altogether, not least because removing them would boost productivity in Wales by up to £100 million, as a recent Welsh Government study has shown. Tolls represent an unfair tax. In an ideal world the UK Government would pay for the maintenance, not the people and businesses of Wales, particularly after such a lengthy period with such eye-watering tolls.

Scrapping the tolls would be a symbolic move, especially with the uncertainty around Brexit. It would be helpful to hear from the Government why they have not included that option in the consultation. I am sure that many people would like to back it. I hope that the consultation is a true one, not just a paper exercise, and that the Government have an open mind on it.

[Mr Mark Williams]

The hon. Lady touches on a point of principle there. The people of Wales pay taxes the same as everyone else. That money goes towards road repairs right across the country, so why should the people of Wales in effect pay twice?

[Jessica Morden]

The hon. Gentleman makes an important point, which I will come to later when I talk about the debt that the Government say they have to recoup. That is interesting, given the money they have recouped in the past from other sources.

The Minister will say that halving the tolls will allow an assessment of the impact on traffic. The traffic using the bridges has increased and, as recent media coverage shows, many people are choosing to relocate from Bristol and the south-west to Newport and Monmouthshire as a lifestyle choice—a very good choice, as it is an absolutely wonderful place to live. In response, the UK and Welsh Governments need to work on a holistic transport plan that includes the metro, and the Government must help to make up the shortfall from the loss of EU funds. While I am being parochial, the Government should support a new station bid for Magor and provide greater rail capacity, especially on the commuter services from Newport and the Severn tunnel junction, which have been dubbed the “sardine express”—I have had debates on that in the past—and the Welsh Government should look at the matters that are devolved.

[Stephen Doughty]

My hon. Friend is being very generous in giving way. I agree with her point about rail. I and others have been campaigning for a new station at St Mellons Parkway—I hope the Minister will be listening closely, because the decision is going to be taken—and for funding for the south Wales metro. Does she agree that the tolls are not only a tax but a time penalty for Welsh residents, because unlike the Dartford crossing and the M6 toll, which have much faster technology—Dartford has got free flow—we do not have free flow or the faster toll technology on the bridge?

[Jessica Morden]

I absolutely agree, and I will come to the issue of free flow later. The fastest transaction at the moment is the TAG, which takes six seconds, but there is further scope for helping with congestion.

Will the Minister tell us where the figure quoted in the public consultation of a 17% traffic increase over 10 years has come from? How much of that will be in the first year? In fact, it would be particularly helpful if he could publish all the research that the Government have commissioned on traffic modelling in relation to the end of the concessions and the traffic flows. I know that all hon. Members would be grateful for that.

If, as the consultation indicates, the Government decide to continue tolling, the toll level should not exceed the cost of operating the two bridges. Severn River Crossing collects about £90 million-plus each year, and that is going up. Maintenance and operation costs are between £13 million and £15 million. Based on a rough, back-of-the-envelope calculation, that requires a toll of about £1, which means the Government will still be charging three times more for cars and 10 times more for lorries. The Government argue that they will have to recoup a £60 million debt for fixing defects but, as the Welsh Affairs Committee has documented, they have done very well out of the bridges so far: the Treasury has received £154 million-plus since 2003 in unexpected VAT—more than enough to cover the debt and undertake the resurfacing work, which the Government value at £12 million, with a lot left over.

On the point made by the hon. Member for Ceredigion (Mr Williams), why do we have to pay for resurfacing on this stretch of road out of bridge tolls, when for any other stretch of road the cost is taken out of general taxation?

[Chris Elmore (Ogmore) (Lab/Co-op)]

I congratulate my hon. Friend on securing this debate. On that point, if one of the many other bridges in the UK failed—God forbid—it would be repaired by the Department for Transport. Does she agree that the Government should be responsible for repairing both Severn bridges?

--- Later in debate ---

[Jessica Morden]

I agree with my hon. Friend—I agree with everyone. That is clearly something the Government should take on board. Given that they have absorbed the VAT charges into the general Treasury coffers, surely we should be dipping into the Treasury’s coffers to pay for the resurfacing work.

The Government have recouped a substantial pot of money. We should not forget that they wiped £150 million of debt from the Humber bridge. Wales deserves the same. Has the Minister estimated the date by which the outstanding Government debt will be paid off? I understand that, under their current plans, it could take 18 months. Is their intention to reduce tolls at that point to reflect that?

Will the Minister tell us how the Government calculated the £3 figure? There is no rationale for how it was reached, and it would be really helpful to have a breakdown to know how the tolls will be spent. Will the Minister confirm what ongoing method will be used to calculate the tolls in future? The consultation does not make that clear, and we need to know how the Department for Transport will assess the tolls annually, because we have suffered years of annual increases.

It is also crucial that we know from the Government when the new tolling regime will come into force. We are currently no clearer about the expected timing of the handover of the crossings. It is anticipated that the revenue target will be met in October, and that the actual transfer of services will occur at some stage after that. What is the current plan? It is important that we get clarity about the handover period and know when the bridges are formally to be run by the Department for Transport. If there is a gap, and VAT comes off the bridges but the tolls remain at the current level, there will potentially be a period when businesses that claim back their VAT will, in effect, have to pay more. Have the Government given any thought to that?

The Department for Transport said that it is a year to go until handover. When does it expect that date to be? Does that mean, for instance, that if the formal handover has not taken place by January 2018, we will have to endure yet another retail prices index increase next year?

The mention of free flow is welcome, but many will be disappointed that it may not be seen for some years. As my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty) said, the main benefit is the reduction in journey times and congestion. Although free flow is clearly a future consideration, I ask for two things: first, that under free flow the tolls will not go up for a return journey; and secondly, that all back-office functions for dealing with evasion and administration should be sited locally. It would be an advantage for free flow if those who carry out the back-office functions know the local area and the local issues. Will the Minister give us some clarity about the Government’s current estimate of the costs of free flow?

Free flow will be looked at in future, but what thought has been given to improving the TAG? It is the fastest current form of payment—it takes about six seconds—but it is important to improve it if we are to tackle congestion. Severn River Crossing has made strenuous efforts to promote the TAG, and nearly 30% of users now use that method of payment, but only an improved season TAG discount and a first-time trip TAG discount beyond a halving of the toll will materially affect TAG take-up. With that in mind, will the Government consider a more ambitious future for the TAG to speed up traffic in the short term?

I am pleased that the long-awaited consultation has been published. I will certainly encourage all those with an interest to contribute their thoughts to it.

[Glyn Davies (Montgomeryshire) (Con)]

Probably every Welsh MP has some sympathy with the points that the hon. Lady is making—not necessarily with all of them, but certainly with some. As she is drawing to the end of her speech, may I ask her about a point of principle? Is she against the whole idea of using a tolling mechanism for constructing new bridges and roadworks? Is the Opposition’s view that there should not be tolls and that we should always fund new road improvements from the Exchequer?

[Jessica Morden]

I think that, after many years of pretty eye-watering tolls on this bridge, it is time we looked for a much fairer regime for people who live in south-east Wales. The tolls have hit my constituents and businesses especially hard. As I have said, there is a strong call, supported by the Welsh Assembly and the Welsh Government, to scrap the tolls altogether, and I have huge sympathy with that. If this Government are not willing to go that far, as indicated in the consultation, we should surely have a £1 maintenance-only toll.

[Nick Smith]

It seems to me that we need some transparency from the Government about the finances, because at the moment they seem very opaque. We have got to find out what is happening with the treatment of VAT, with the future debt costs, and with the resurfacing and maintenance costs. We need the Government to be absolutely clear about what the costs are so that the public can take a view about whether it provides value for money.

[Jessica Morden]

My hon. Friend is completely right. More clarity would be most welcome so that, when statutory instruments are introduced on the matter, we are far clearer about what the effects will be. The consultation contains more detail about the options that are not being considered than about those that are on the table. It says that Highways England will have the responsibility in future, but will it contract out any elements of the operation or maintenance of the bridges? What maintenance charges, other than for the resurfacing, do the Department for Transport anticipate for the bridges in the first 18 months?

The consultation mentions the option of removing tolls between 10 pm and 6 am—off-peak travel—but does not seek views. Will the Government speak to businesses and others to gauge their views? Business representatives I met in my constituency on Friday said they thought it would be extremely attractive to companies based in south Wales, particularly in the logistics industry, so more work should be done to pursue that option.

To conclude, the Severn Bridges Act was written almost 30 years ago. As we have said many times, it was an inflexible piece of legislation that was not future-proofed. I have one plea for the Minister: whatever legislation we have to pass—the consultation made mention of statutory instruments—we as local Members should be consulted properly. We and our constituents need to be able to take part, because in the months to come we will have many more detailed questions, although I hope that the Minister can answer some today. I appreciate other hon. Members supporting the debate and I look forward to their contributions.

[Geraint Davies (in the Chair)]

Moving from Newport East to Newport West, I call Mr Paul Flynn.

--- Later in debate ---

[Glyn Davies]

rose—

[Jessica Morden]

rose—

[Paul Flynn]

rose—

--- Later in debate ---

[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.

--- Later in debate ---

[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.

--- Later in debate ---

[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.

[Jessica Morden]

I appreciate the Minister’s intervention. I thank him for his comments, but I am not sure whether we are that much clearer about the breakdown of the £3 toll. I will hold him to his promise to break that down for us in more detail.

I am also not sure whether we are that much closer to understanding the handover plan. The Department for Transport clearly cannot take over the bridges the minute the last car pays up and the revenue target is reached, so it would be useful to know about that, not least because I would not want constituents to face another annual increase in January 2018. I would also like more detail from the Minister on what can be done about the TAG reduction.

I hope that this time we end up with a lasting solution that means we can future-proof the legislation. Will the Minister respond in writing to anything else we have raised in the debate? That would be particularly helpful. As in all our efforts in talking about the Severn bridge tolls, we do so for our constituents, our businesses and the wider economy of south Wales, which have been hit hard by the tolls over the years.

Question put and agreed to.

Resolved,

That this House has considered future operation of the Severn Bridges.

Oral Answers to Questions

Jessica Morden Excerpts

Thursday 15th September 2016 Commons Chamber

[Chris Grayling]

It is definitely my intention to publish details of the proposed northern part of the route—the right-hand side of the Y on the last leg to Manchester—later this autumn.

[Jessica Morden (Newport East) (Lab)]

What is the Minister’s current assessment of when the Severn bridge’s concession will end, given the extra traffic when the Severn tunnel is closed for electrification work? Are the Government on top of this, given that we have not yet had a date for the public consultation?

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

It is right that we should have that confidence. I am more than happy to commit to doing the work necessary to reassure the hon. Lady about that. It needs to be safe, it needs to be secure, and it needs to be right which is why I am more than happy to make that commitment.

Oral Answers to Questions

Jessica Morden Excerpts

Thursday 30th June 2016 Commons Chamber

[Mr McLoughlin]

I fear that the hon. Gentleman has come in a bit too early. I intend to address the points he has just made in response to question 8 on the Order Paper.

[Jessica Morden (Newport East) (Lab)]

6. When he expects a decision to be made on post-concession arrangements for the Severn bridges.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

The UK Government are committed to the continued successful operation of these vital crossings. The Government plan to consult this autumn on the proposed halving of tolls—which would represent a massive saving for users—as well as other options, including free-flow tolling.

[Jessica Morden]

I thank the Minister for attending the recent meeting in this place with the Freight Transport Association to discuss the future of the Severn bridges. I know that there is to be a consultation, but there is real concern about the issue, especially now that the bridges will continue to be seen as a cash cow for the Government. May I reiterate that we want the bridge tolls to come down further and an assurance that when they return to public ownership they stay that way?

[Andrew Jones]

I very much enjoyed that meeting and hearing the views of businesses in Wales and of Welsh Members. The concession will finish when £1.029 billion is returned from tolls to the public purse. We expect that to happen sometime in early 2018. We are working on the plans that will follow that transition. We will consult more broadly, but I entirely agree that keeping the tolls low will help businesses in the area.

Cabin Air Safety/Aerotoxic Syndrome

Jessica Morden Excerpts

Thursday 17th March 2016 Westminster Hall

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

I beg to move,

That this House has considered cabin air safety and aerotoxic syndrome.

It is a pleasure to serve under your chairmanship once again, Mrs Gillan. I thank the Backbench Business Committee for granting this debate, and I thank my hon. Friend the Member for Brent Central (Dawn Butler) and the hon. Member for Altrincham and Sale West (Mr Brady) for joining me in my application.

I said in my application to the Backbench Business Committee that I am always willing to approach issues of industrial safety with an open mind and a willingness to consider the concerns of the workforce. The reason for that can be summed up in one word: asbestos. We have a terrible legacy of asbestos and mesothelioma in my constituency, and no one would wish to find themselves on the wrong side of history when it comes to a potentially serious health issue in the workplace. From the outset, I acknowledge that I understand and appreciate that aerotoxic syndrome is not yet a recognised medical condition, but it is something of considerable debate, hence our having this debate today.

I am not a medical professional, and I am not saying that it should be down to us as MPs to decide what is a recognised medical condition. However, aerotoxic syndrome has attracted a great deal of attention, both from passengers and, crucially, from those working in the airline industry, which is why it is right for us to have this debate today. Workers are worried, and we have a responsibility to treat the issue seriously. Everybody deserves to have confidence that the air they breathe in the workplace is clean and safe. Many people have got in touch with me since I secured the debate, and they are extremely grateful that their concerns are being raised in the House today. My aim is to present the concerns that have been raised and to make some requests of the Government, which I hope the Minister will listen to and accept.

I will now provide some background for those following the debate who may not be well versed in the topic. The key factor is the use of bleed air to provide a pressurised air supply to the cabin during flights. Bleed air is compressed air from the jet engines, and it is used by the vast majority of passenger aircraft in operation today. The problem arises when faults with engine seals cause seepage into the cockpit and cabin, which in turn can lead to contaminated fumes containing toxins being digested by people on board the plane. It is worrying that the long-term and short-term effects of exposure to contaminated air containing such toxins is not fully known, nor has enough work been done to establish the link between contaminated air and aerotoxic syndrome.

Aerotoxic syndrome affects the peripheral and central nervous systems and the brain. Symptoms include migraines, fatigue, difficulty thinking, numbness, aches and pains, breathing problems and digestive problems. Furthermore, there has been a significant rise in the number of cases, which simply cannot be ignored. It is significant that the Unite trade union tells me that it is currently acting on behalf of 61 individual cases. There is evidence pointing to aerotoxic syndrome being an illness to which cabin crew, not to mention passengers, may be exposed, and it must be treated seriously.

One of the aims of today’s debate is to raise the profile of cabin air safety and aerotoxic syndrome. Until recently I was not particularly aware of aerotoxic syndrome. Today’s debate has caught the attention of the national press and has brought the issue to wider prominence, which can only be a good thing. The issue came to my attention in a briefing for MPs organised by the Unite trade union, of which I am proud to declare myself a member. Unite has been doing some fantastic work on the issue and is doing exactly what a good trade union should do, which is representing the interests and concerns of the workforce. The Government’s attitude towards trade unions can often be quite negative, as evidenced by the Trade Union Bill, but they would be wrong to dismiss this issue raised by the trade unions. We should all agree that representation of the workforce to ensure a safe and healthy environment is a right for all working people.

The briefing was attended by the father of Matthew Bass, which struck a chord with me and other Members present. Matthew, known as Matt to his friends, was a British Airways flight attendant who sadly died in January 2014, having been in the job for almost a decade. He loved his job, and it was a shock to his friends and loved ones when he passed away. He was just 34 years of age. The cause of his death has not been established, but he kept himself fit and healthy. In the last six months of his life, he frequently complained of tiredness and occasionally suffered mild bouts of trembling. After his death, post-mortem tests ruled out Crohn’s disease but failed to establish an alternative cause of death. His family still have many questions, not least as to whether aerotoxic syndrome had some responsibility. My sympathies, and surely those of the whole House, are with Matt’s family and friends as they search for answers. We owe it to him and them to help to find those answers and to take the issue seriously.

Furthermore, the senior coroner for the county of Dorset wrote to the Civil Aviation Authority last year regarding his concerns about the death of British Airways pilot Richard Westgate. He wrote that organophosphate compounds, which are present in aircraft cabin air, were found in Mr Westgate’s system and presented a risk to health. Worryingly, there is no real-time monitoring to detect such compounds. The coroner also added that, in his opinion, there is a risk that future deaths will occur unless action is taken.

[Jessica Morden (Newport East) (Lab)]

I am grateful to my hon. Friend for securing this debate, which is relevant to the organophosphate poisoning campaign run by the Sheep Dip Sufferers Support Group, with which I have worked on behalf of my constituent, a farmer, Stephen Forward. This is obviously a Department for Transport debate, but does my hon. Friend agree that the debate is equally relevant to the Department for Environment, Food and Rural Affairs and the Department of Health and that we need the Government to be far more active in addressing these issues?

[Jonathan Reynolds]

I am extremely grateful to my hon. Friend for putting that point on the record. I was not aware of the DEFRA angle until she informed me of it, which further reinforces the case and people’s concerns. I would be particularly interested if the Minister addressed that point and the coroner’s letter regarding the British Airways pilot.

By raising this issue I am in no way seeking to do down the British aerospace industry, which I am sure is true of everyone here today. The aerospace industry is a vital part of the UK’s manufacturing output, and I am proud that that is particularly the case in north-west England—and long may that continue. I also have no desire to do down the UK’s successful aviation industry and this country’s world-class airports, which are another vital part of the UK economy. Like many Members present, I have a strong relationship with my local airport in Manchester.

Airlines have a duty of care to their staff, as do all workplaces, and I am sure they would want to reassure their staff on safety. I will be writing to the UK’s major airlines to find out exactly what they are doing on this issue. I dare say that pressure from the Government would strengthen that campaign. Many concerns have been raised by Unite and by cabin crew, and we have a duty of care to those people to reassure them and, if necessary, to protect them.

Cost of Public Transport

Jessica Morden Excerpts

Tuesday 19th January 2016 Commons Chamber

[Jessica Morden (Newport East) (Lab)]

I promise to be snappy, but first may I congratulate my hon. Friend the Member for Oldham West and Royton (Jim McMahon) on his fantastic maiden speech? It was a pleasure to be in the Chamber for it. His experience, his background, his love for his constituency and home—it all shone through in his speech. I know he will make a huge contribution to this place.

With a constituency on the border with England, one never misses an opportunity to talk about rail, yes, but about the Severn bridge tolls too, which are the subject of many questions to Transport Ministers and of many debates here. I know that this will continue until we know the Government’s plans for tolling in the future when the bridge is returned to public ownership. About 12,000 people in Newport and Monmouthshire commute to work over the bridges every day. As ably highlighted by our Front-Bench team in today’s debate, the cost of commuting has increased substantially.

[Carolyn Harris (Swansea East) (Lab)]

Does my hon. Friend agree that it is not only those living in her constituency who are affected, because every person who travels over the bridge into God’s own country is exploited by the exorbitant tolls, which act as a deterrent to trade and tourism?

[Jessica Morden]

My hon. Friend is absolutely right, and I thank her for adding weight to the campaign to lower the Severn bridge tolls, which is much appreciated.

My constituents are basically trapped: they must either pay rising fail fares or the Severn bridge tolls. Commuters, as well articulated by our Front-Bench team, face ever-rising rail fares. Since 2010, season tickets for commuters have risen by 25%. Newport to London commuters face having to pay £2,000 a year more than in 2010, and the cost of travelling from Newport to Bristol Temple Meads has gone up by 27%—a £500 increase. Demand for these services is growing fast, yet we see no improvement in services. Trains are heavily overcrowded, and there are frequently not enough carriages, especially for those getting on at the Severn Tunnel junction in my constituency. I get that feedback every week: carriages are overflowing and constituents are often left on the platform when there is insufficient capacity to take them.

There is an alternative—crossing the Severn bridges, and this is probably the local issue that is raised with me most frequently. Since 2011, the bridge tolls have gone up by 20% for cars. This matters for my Newport East constituents, when those in full-time work have seen only a 2.4% increase in their wages. The fundamental point is that the money taken by the Severn River Crossing is protected from inflationary pressures, while my constituents’ wages are not.

Tolls on the Severn bridges are the most expensive in the UK. The Western Mail said a few years ago that they were the most expensive per mile in the world. I very much look forward to seeing Transport Ministers tackling that issue for my constituents. We need to know very soon what the Government’s plans are, as they affect the rail services or the Severn bridge tolls, as we reach the bridges’ return to public ownership in 2018.

Severn Bridges (Tolls)

Jessica Morden Excerpts

Tuesday 21st July 2015 Westminster Hall

[Jessica Morden (Newport East) (Lab)]

I beg to move,

That this House has considered tolls on the Severn bridges.

It is a pleasure to serve under your chairmanship, Mr Gray. I am grateful for the opportunity to debate probably the No. 1 issue on which constituents approach me. Obviously I am not alone in that, as the monster turnout here on the afternoon of the last day before summer recess shows. We have Members from Llanelli all the way across the M4 corridor to Monmouth, from Northern Ireland, and even the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry). That shows how keenly the issue is felt across south Wales and in other places. I hope that other Members’ contributions will only strengthen the case for lowering the Severn tolls when the Severn river crossings concession comes to an end.

I should be clear from the outset that we pay the absolute highest tolls in the UK on the Severn bridges. With the concession coming to an end in a few years’ time, there is real strength of feeling about the need to reduce the charge to a maintenance-only toll, as recommended by the Welsh Affairs Committee’s excellent reports in the previous Parliament. There was cross-party agreement on the Committee that we could get down to a maintenance-only toll of around £1.50. I commend the Committee’s work over the years under the chairmanship of the hon. Member for Monmouth (David T. C. Davies)—we have looked at the issue in much detail and done a lot of work on it.

There is now a real need for clarity from the Government on the profits, operating costs and so on, and on where we are going in future. We urgently require some kind of strategy for the bridges, because we have only just over two years to go until they return to public ownership. We need to know the Government’s intentions for the future of the bridges. We must have clarity about what discussions the Government are having and what the direction of travel is. I hope that this debate will help us to flesh out those issues a little.

The Government have done incredibly well out of the bridges over the years. I will say a bit more about that later, but people really feel that they have been paying through the nose over the past few years. We need to redress the balance for the future. I know the Minister will argue that the Government are doing something to reduce the tolls—they announced in the comprehensive spending review that they were going to take the VAT off the tolls—but they are doing the absolute minimum. They know that they will have to take VAT off the tolls when the bridges come into public ownership; any Government would have had to do that. They are taking some measures on reducing the costs for cars and vans, but any Government would have had to do that as well. I want to see them go much further.

Along with other Members present, I have spoken in many debates on this issue over the 10 years I have been in the House. I think there have been eight Secretaries of State for Transport over that time, and numerous Transport Ministers. At this point, the Government cannot ignore the need to offer some light at the end of the tunnel for my constituents. Part of the reason why I have called for this debate early in the new Parliament is that, with the Government’s plans for English votes for English laws, who knows where Welsh MPs might be and what say we might have in future negotiations?

Three of the four legs of the Severn bridges are in England, with the other falling in my constituency, Newport East. Control of the Severn bridges and tolling rests falls completely within the remit of the Department for Transport. Aside from the assurances given in last week’s debate on English votes for English laws, I hope that the Government can reassure us today that Welsh MPs will have an equal voice on Severn bridge tolls, not least because the tolls are paid going into Wales and the impact is felt most keenly by Welsh commuters and businesses.

As I said, we have the highest tolls in the UK on the Severn bridges—[Interruption.] I think the hon. Member for Carmarthen West and South Pembrokeshire (Simon Hart) is demolishing the Chamber. Since the second bridge opened in 1996, the tolls have increased 19 times because of the inflexibility of the concession, which I will come to later. We are now paying £6.50 for a car, £13.10 for a van and £19.60 for coaches and lorries. By comparison, the undiscounted price of a single journey for a car at the Dartford crossing is £2.50, and for the Mersey tunnels it is £1.70. The Humber bridge currently has undiscounted tolls of £1.50 for cars, £4 for medium-sized vehicles and £12 for heavy goods vehicles.

Campaign groups, motorists and businesses have called for the Government to step in and help, but their calls have fallen on deaf ears. There is, however, an example of where the Government have listened to local concerns in the past and stepped in to help: the Humber bridge. In 2011, the Government reduced the debt on the bridge by £150 million, which halved the toll for cars to £1.50. On the Government’s own estimates, the accumulated deficit on the Severn bridges will be £88 million in 2018. Why will the Government not step in for a smaller amount?

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I wholeheartedly support the case that my hon. Friend is making, as well as the recommendations made by the Welsh Affairs Committee, on which I also sat.

It is not only the disparity in the tolls that is so shocking; there is also the disparity in technologies. We have not seen the introduction of free-flow technology or contactless payment. Those of us who use the tolls regularly know, as do businesses, that a wait in the queue often lasts ages. It is only recently that credit card payments were introduced. Does my hon. Friend agree that the disparities in technologies are also causing problems for businesses and customers in south Wales?

[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.

[Nick Thomas-Symonds (Torfaen) (Lab)]

I congratulate my hon. Friend on securing this important debate. I agree with her point about the effect on businesses, which was also well made by the hon. Member for Ceredigion (Mr Williams), but there is also an effect on commuters. One issue faced by people in south-east Wales, including in my constituency, is that if they need to commute to work in Bristol, the tolls are effectively a weekly tax that must be taken into account. That can often act as a disincentive to people taking such jobs.

[Jessica Morden]

My hon. Friend is quite right. People in many communities in my constituency, particularly those with low and medium incomes, find it difficult to absorb that cost. Access to jobs in Bristol for which people might like to apply is limited by their having to pay what amounts to an extra tax.

The Welsh Government’s report is clear, and, having spoken to small and larger businesses locally, so am I: the tolls have a big impact.

[Jim Shannon (Strangford) (DUP)]

In Northern Ireland, we do not have any toll roads or bridges—I thank the Lord for that—but that is because of their potential impact. Has the hon. Lady considered the effect of reducing the tolls on tourism, which is an important issue in Northern Ireland, and obviously for the hon. Lady as well?

[Jessica Morden]

I thank the hon. Gentleman for his intervention. Various sectors, particularly transport but also tourism, are impacted by the tolls. Evidence from tourism businesses in the west suggests that the tolls make it more difficult to attract visitors from the south-west of England, for example. The charge also acts as a psychological barrier, as people have to pay to enter Wales.

[Wayne David (Caerphilly) (Lab)]

Support for my hon. Friend’s argument is strong and broad and comes not only from the Welsh Government, small and medium-sized businesses and the CBI in Wales, but from Welsh local government. A letter sent to the Prime Minister by the leader of Neath Port Talbot County Borough Council only a few months ago also made the case strongly, which is indicative of the wider view of Welsh local government.

[Jessica Morden]

I agree wholeheartedly. There is probably now a case for a broader campaign to make such points, encompassing local government, business, chambers of commerce and so on.

Owens logistics, which is based in the constituency of my hon. Friend the Member for Llanelli (Nia Griffith) but has a main depot in Newport, is a haulage company that has long campaigned for a reduction in the tolls, on which it spends half a million pounds a year. That money just comes off the bottom line. It is an extra cost that the business has to pay that it cannot pass on to its customers. Owens has been quite open with me that it is thinking long and hard about its business decisions, because if it transferred parts of its operation across the bridge, it would avoid the tolls. That is the sort of decision that businesses in our area are making, which is precisely why we need clarity from the Government about further toll reductions.

The South Wales chamber of commerce told me about the impact that the tolls have on the tourism sector and the logistics industry. As I said, if logistics companies choose to pass the cost on to the customer, it adds to the cost of goods produced in Wales, making them less competitive, or increases the costs for businesses buying goods from England. The chamber of commerce also said that its colleagues in Business West say that it is picking up the fact that businesses are choosing to locate on the English side of the bridge due to the tolls.

Small businesses are also affected. I received an email this morning from a business that rents out marquees and employs 38 people. The cost of the tolls to the business over the summer is an extra £1,000, making it difficult for it to compete with companies on the English side of the bridges.

[Stephen Kinnock (Aberavon) (Lab)]

I congratulate my hon. Friend on securing the debate. Does she agree that the policy for the bridges and their tolls is a classic example of a false economy? The tolls may well create revenue, but a huge amount of additional economic activity is being lost. This disincentive to cross-border trade and activity deprives the Exchequer of much-needed tax revenues through corporation tax, business rates and additional economic activity. If the tolls were presented as a classic example of a false economy, we may get some more traction with the Government.

[Jessica Morden]

I thank my hon. Friend for his well-made point. The Welsh Government certainly agree that lowering the tolls would help to stimulate the Welsh economy.

Other hon. Members mentioned commuters earlier. In my constituency, many people in Magor, Rogiet, Caldicot, Undy and so on commute over to Bristol for work every day. It is a strong commuter area and the tolls’ effect is keenly felt, particularly by those who are looking for work in Bristol but cannot absorb the toll cost. Over the years, I have met people facing a bill as part of the Child Support Agency process, for example, who have said to me, “I work for this distribution company in Bristol, but once I have absorbed the bridge costs, I am on fairly low pay. How am I going to survive?” People’s employment opportunities are being limited. The only concession available on the Severn bridges is the TAG system, which allows four free journeys out of 22 in a month. Taking bank holidays and annual leave into account, that is not much of a bargain. We could do a lot more on that.

Some 12,500 people commute to England from Newport and Monmouthshire. Many of them use the bridges, which restricts their access to jobs and acts as an extra tax. My plea to the Minister today is for a consultation. We are just two years away from decisions being made, so I ask the Department for Transport to give bridge users, businesses and hon. Members a say in how we move forward and help our constituents by getting the tolls down. There is not long to go, so it is high time that we had that conversation. Successive UK Governments have failed—the Welsh Government have done the same—to undertake studies into the bridges’ economic impacts. It is time that we asked the Department for Transport to collect further evidence so that everyone can have an input.

Moving on to the thorny issue of bridge finances, having lived with the Severn bridges in the capacity of an MP for many years I can say that the finances are as clear as mud. Getting clarity is terribly difficult, so I ask the Minister for some figures today so that we can have an informed debate going forward. The concession was established by the Severn Bridges Act 1992, which, in retrospect, was clearly far too restrictive. It allowed the company to whack up the tolls every year, with no one being able to have a say and the Government arguing that they have little flexibility to step in and reduce tolls without incurring taxpayer liability. However, as I said earlier, they did step in in the case of the Humber tolls.

As we know from previous Welsh Affairs Committee inquiries, the company has done very well over the years. In oral evidence given to the Committee in 2013, we heard that the costs of the bridges for Severn River Crossing plc were some £50 million, including depreciation at £38 million and operational costs of £13 million. That £50 million compares with an annual turnover of £81 million. Will the Minister confirm the latest position and update those figures? Having a clear idea of the company’s operational costs and profits would be helpful.

The Government also do pretty well out of the bridges. They receive significant tax receipts from VAT and from the removal of the industrial buildings allowance, which was a tax relief that Severn River Crossing plc used to benefit from. From the answer to a recent parliamentary question, we found out that Severn River Crossing plc paid £154.2 million in VAT to Her Majesty’s Revenue and Customs between 2003 and 2014. However, we have been unable to get a specific figure from the Government on how much they have benefited from the removal of the IBA. Will the Minister commit today to providing that figure? Will the Government be straight about how much they have benefited?

I also hope that the Government will remedy as early as possible the situation whereby they and the company are protected from financial pain but my constituents and other users of the crossings are not. Users always end up paying, while the company is always protected. When the industrial building allowance was withdrawn, the company was allowed to extend its tolling mandate to compensate for that. The same was true of the VAT increase implemented by the coalition Government. In the spirit of fairness, I wonder whether the Government could reduce the tolling mandate given that the Chancellor has announced further reductions in corporation tax, which will further benefit Severn River Crossing plc. The first corporation tax cut will be in 2017-18, before public ownership. How will we ensure that taxpayers do not lose out when the company gets yet another tax reduction?

The main point on which my constituents would like an answer is about VAT. Given that the Government have benefited from the tax income—VAT of £154 million—why are they still arguing for tolling to continue after 2018 at a level high enough to recoup an £88 million debt? Clearly, the Government have done extremely well out of the bridges, so is it not time to pay people back a little by reducing the toll?

I want to allow others to speak, although hon. Members have already raised a lot of issues to do with the bridges. It would be incredibly helpful to know when the concession will end, because that has been a moveable feast—it was 2016, then 2017 and is now 2018. Will the Minister update us on when the Government expect the concession to end and the bridges to come back into public ownership, and on the maintenance of the bridges? A previous Minister said in reply to a similar debate to this that he would keep an eye on what he was inheriting. Will the Minister tell us a little more about what the Government expect to inherit when the bridges come back into public ownership?

May we have a discussion about free-flow technology? In various oral evidence sessions of the Welsh Affairs Committee, the company used to argue that the technology to differentiate between cars and vans was not available. Given that the Government are moving to reduce the cost for vans, surely implementing such technology will be easier. I want a maintenance-only toll, but I also want the Government to add into the mix a re-examination of what concessions might be given locally.

[Wayne David]

Will my hon. Friend express a view on the suggestion that control of the bridges should pass to the Welsh Government in 2018?

[Jessica Morden]

My honest answer is that I do not care who runs the Severn bridges, as long as the tolls come down. If the tolls were reduced to a maintenance-only rate, I would not care who was running them.

Among the concessions suggested by business are those for off-peak travel, or free travel for hauliers during off-peak times.

Finally, a more than strong suspicion locally among constituents and businesses, and certainly among hon. Members, is that the Government treat the Severn bridges as a bit of a cash cow. I do not want to see that in two or more years’ time, when the bridges return to public control. Will the Minister promise to engage with hon. Members, businesses, commuters and our constituents, to find practical solutions to all the problems and lower the cost considerably for my constituents?

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

It is a pleasure to serve under your chairmanship again, Mr Gray. I congratulate the hon. Member for Newport East (Jessica Morden)on securing this debate about tolls on the Severn crossings. It has become extremely clear, from contributions from hon. Members on both sides of the Chamber, just how important the crossings are to the economy of Wales and to the whole of the west of England. The argument has been made very strongly, particularly with reference to the high volumes of people crossing for tourism or for the manufacturing industry, reflecting key strengths of the Welsh economy.

I am pleased to respond to this Adjournment debate on a subject of great importance to the hon. Lady and her constituents. I know that she has campaigned on the matter for a considerable time. I was quite surprised, but very pleased to find the interest from right across the UK. Lessons from different parts of the UK can always be considered. I was also delighted to hear colleagues argue for less cost on business as a driver of economic growth. That is music to Conservative ears. I also recognise how it links firmly with the Government’s plans to drive infrastructure investment as a key lever of economic growth. I will just say a little, if I may, about how that will work.

The Government have announced increased funding to deliver improvements on our road infrastructure network targeted entirely at delivering economic growth. Our commitment to deliver a step change in our transport infrastructure was made clear by my right hon. Friend the Chancellor of the Exchequer in his statement on 26 June 2013, when he announced the conclusions of the spending review of that year. I am sure that everyone will be aware of the Government’s announcement on 1 December 2014 of the road investment strategy. As part of that strategy, the investment plan outlines how we will invest in the strategic road network between now and 2021 to make the improvements that will put us on the path to delivering all our long-term economic goals. In total, the Government are investing £15.2 billion in more than 100 major schemes, which will enhance, renew and transform the network.

Of course, the strategic road network is solely in England and roads are a devolved responsibility in Wales, but the Government have also provided the Welsh Government with the borrowing powers to fund the new M4 relief road, which I hope will address the congestion that has long plagued that section of the M4. I am highlighting that, because it shows one way of working together—the principle of partnership that I consider to be very positive and that will be most important as we take forward the Severn crossings and their future.

More than 220 million Severn crossings have been paid for since 1992, and traffic has increased by more than 50% over that period. More than 13 million crossings were paid for last year, which is a significant increase of 3.7% on the previous year. We should also note that those figures cover only crossings into Wales—people pay a return toll—and not journeys in the opposite direction. It is reasonable to surmise that the total traffic figures are double the recorded tolls, which highlights the importance of the crossings to the economies of both countries and the role the crossings play in strengthening the bonds that already exist between the two nations, which is of course a key objective of many parties in this House.

The hon. Member for Newport East has raised several issues regarding the Severn crossings, including the tolls that are charged for using them. As she knows, for decades successive Governments of all persuasions have held the view that crossings on estuaries should be paid for by the user, rather than by the taxpayer. They have taken that approach because of the outstanding savings in both time and money that such expensive infrastructure projects make possible. It is important to make that point at this stage, and it should be remembered.

I hesitate to provide a historical context, because I know that the hon. Lady is acutely aware of all the history, but it is relevant. The first Severn bridge was tolled when it opened in 1966 to pay for its construction, and it enabled a direct link from the English motorway network into Wales. However, it was not long before the first crossing operated significantly above its designed traffic capacity, and it became clear that further capacity would be required. In order to fund a second crossing, a concession agreement was signed with Severn River Crossing Ltd, which took on the operation and maintenance of the first bridge and the construction of the new bridge. The second bridge subsequently opened in 1996.

As is the norm with concession agreements, Severn River Crossing Ltd is authorised to collect tolls to meet its financial obligations. Those tolls are in place to repay the construction and financing costs of the second Severn crossing, to repay the remaining debt from the first river crossing and to maintain and operate both crossings, and the tolls form the company’s only source of income. The concession agreement was structured so that certain risks, such as costs relating to latent defects on the first crossing, were borne by the Government, rather than by Severn River Crossing Ltd. By taking on those risks, the Government were able to finance the construction of the second crossing and the maintenance of both crossings at much lower cost than they could otherwise have achieved. If those risks had been included in the concession arrangements, the tolls that users have paid for many years would necessarily have been considerably higher, which would have pushed back the concession further than the current projected end date of 2018.

Members have asked when the concession will finish. That will happen when it has achieved total income of £1.029 billion at 1989 prices, so it is not possible to give an exact date for when it will finish. We are able to project ahead based on current usage but, as I mentioned earlier, usage is going up, so the date may come forward.

[Jessica Morden]

Will the corporation tax cut have an impact? Does the Minister anticipate that that will bring forward the date when the concession ends?

[Andrew Jones]

The corporation tax cut should be viewed as part of a broader economic package to drive growth. The more economic activity we have, the greater the use of the crossings will be. The corporation tax rates paid by individual companies are not part of this process, but the overall activity that the Government are seeking to create through a vast focus on economic growth will certainly bring things forward, as more economic growth means more crossings, and more crossings mean more revenue, which means that the target will be reached earlier.

The Severn Bridges Act 1992 sets out the tolling arrangements and the basis for yearly increases in the toll rates. New toll rates are introduced on 1 January each year and are increased in line with the retail prices index using a formula that is then rounded up to the nearest 10p. I stress that the Secretary of State for Transport does not have the authority to reduce Severn tolls without amending primary legislation and obtaining the concessionaire’s agreement. The concessionaire is extremely unlikely to agree to anything that would affect its net revenue without compensation and agreement from its shareholders and lenders. That is a key point, because we are talking about what happens after the concession ends.

At the end of the concession, as everyone has noted, the crossings will revert to public ownership. As the Chancellor stated in his March Budget, once the crossings are in public ownership, VAT will no longer be payable on the tolls, which will be reflected in the toll prices. Members have asked for clarity on that, and I am happy to confirm that VAT on the tolls is going.

[Jessica Morden]

The Minister will know that, as the tolls go up automatically in 2016 and 2017, by the time the toll increases are applied in 2018, taking off the VAT will return the tolls to about £5.60, according to my back-of-an-envelope calculation, which means that about 90p will come off in two and a half years’ time. Does he appreciate that that is no great shakes?

[Andrew Jones]

Removing VAT will result in a significant cost reduction. Of course, like all Members, I would like cost reductions in all sorts of areas of our economy, but to say that VAT reductions are matters of great insignificance is simply wrong. It should be remembered that further reductions in tolls for some vehicle classes once the crossings return to public ownership were also announced in the March Budget. The Chancellor announced that, when the concession to toll the crossings ends, the higher toll rate for vans will be reduced to the same rate as for cars, which will be a significant benefit to smaller businesses on both sides of the crossings. So we are considering some toll reductions, which is significant.

Our intention is to continue tolling after the projected end of the concession in 2018 simply to recover the costs that have been incurred in relation to the crossings that fall outside the agreement. The current projection of those costs stands at £88 million. We have not made any decisions about the operation and tolling arrangements for the crossings once the current regime ends. The road investment strategy contains the Government’s commitment to working with the Welsh Government and others to determine the long-term future of the Severn crossings. The Under-Secretary of State for Wales, my hon. Friend the Member for Vale of Glamorgan (Alun Cairns), who is sitting next to me, has done excellent work in highlighting the economic impact that the toll reduction for vans and the VAT reduction will have on the area and in explaining the importance of the crossings overall. We have already met to discuss that subject, and I anticipate that we will meet again shortly.

--- Later in debate ---

[Jessica Morden]

I am grateful to the Minister for that response, although I suspect that hon. Members and Friends will have more questions to ask him. I thank colleagues for coming today; I counted about 15 in the Chamber, which shows the high level of interest in the topic.

In thanking the Minister for his response, I reiterate to him the list of points raised in this debate, and I suggest that he writes to all Members here to outline the answers to some of the questions asked, not least to spare him from having to come back yet again for another 90-minute debate on the Severn bridge tolls. To reiterate, the wish list from this debate includes financial information about the Severn bridge tabled for hon. Members to scrutinise—I am sure that the Select Committee on Welsh Affairs will return to that in its work—and a clear timetable about where we will be in future, as mentioned by my hon. Friend the Member for Llanelli. Perhaps the Minister will also commit to meeting groups of us to give us regular updates, not least to spare himself another debate.

[Andrew Jones]

I am happy to make that commitment.

[Jessica Morden]

I thank the Minister for that. To reiterate what the hon. Member for Monmouth and I said earlier, this Government have done extremely well out of the bridges; they have been a cash cow. The Government’s assertion that they might keep on tolling rather than reduce the high tolls after the concession ends—we know that although the debt will be £88 million, the Government have already recouped £154 million in VAT response—will not go down well. I would appreciate it if the Government reconsidered reducing the tolls further.

Question put and agreed to.

Resolved,

That this House has considered tolls on the Severn bridges.

Oral Answers to Questions

Jessica Morden Excerpts

Thursday 5th March 2015 Commons Chamber

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

Every meeting I have had with my hon. Friend has been a joy, as was the one yesterday. I have diagrammatic and photographic representations of the issue he raises, which I will deliver to you, Mr Speaker, and make available to Members on request. I will send officials not only to look at the matters we discussed yesterday, but to look at the matter my hon. Friend raises today, to see what can be done, but I have to say I think we should act in accordance with his recommendations, because I know he always champions his constituents’ interests.

[Jessica Morden (Newport East) (Lab)]

T4. Fare evasion is obviously a serious issue for the rail industry, but I have seen a number of recent instances where train companies have over-zealously pursued minor cases against constituents who have either been given the wrong information or might have made an innocent error. What is the Minister doing with train companies such as Arriva to ensure that there is clarity for travellers and to make sure that the rules are applied reasonably?

[The Parliamentary Under-Secretary of State for Transport (Claire Perry)]

The hon. Lady raises an important point. I recently launched a public consultation on exactly this matter, and I have urged the train companies to pursue such cases where necessary—where there is genuine fare evasion—but to be much more sensible where there are genuine mistakes. She is welcome to make her views and those of her constituents known in that consultation, and I would like to make those changes.

Oral Answers to Questions

Jessica Morden Excerpts

Thursday 4th December 2014 Commons Chamber

[Jessica Morden (Newport East) (Lab)]

9. What recent discussions his Department has had with FirstGroup on service performance on the Great Western main line.

[The Secretary of State for Transport (Mr Patrick McLoughlin)]

Officials hold meetings with First Great Western every four weeks to discuss franchise performance. Ministers and officials regularly meet senior figures from across the industry at a range of forums to discuss current issues, including performance. We have made it clear that we expect the industry to do its utmost to deliver the level of performance for which it is funded.

[Jessica Morden]

Will the Secretary of State ensure that the new Great Western main line franchise takes into account the very real present overcrowding problems in south-east Wales, and ensure that the operator provides an adequate number of carriages to service demand now and on future forecasts?

[Mr McLoughlin]

One of the things that I have done with that franchise is to make arrangements and instruct the operator, as it is doing, to convert first-class carriages into standard-class carriages. That will increase capacity a little on the line. The line has been very successful overall. In 2010-11, the number of passengers using the franchise was 90.5 million; on the latest figures available, for 2013-14, the number was 99.7 million. We are seeing such a rise across the whole rail franchise sector.

Cross-border Rail Services in Wales

Jessica Morden Excerpts

Wednesday 2nd July 2014 Westminster Hall

[Jessica Morden (Newport East) (Lab)]

It is a pleasure to serve under your chairmanship, Mrs Riordan. I thank other hon. Members and hon. Friends from Wales for showing up, and I know that more hon. Members would be here if it were not for the fact that the Select Committee on Welsh Affairs is considering other business.

Transport debates, by their nature, can be extremely parochial, but I make no apology for introducing this debate on rail issues that affect my constituents, because those issues are a big concern for the commuters I represent. I will concentrate on overcrowding and problems with the franchise in my area, but other hon. Members might want to make more general remarks about the franchise, the electrification of the valleys lines and related funding issues.

Like many hon. Members, I receive a lot of complaints from constituents who are frustrated by the day-to-day problems they face when they commute or travel for leisure. My constituency is near the border, so many of my constituents travel to the south-west, Bristol and Bath and to London. The debate is born out of great frustration with train companies and train operators, which is felt by me, by the excellent Severn tunnel action group—I know I am biased, but I believe that it is the best rail users’ campaign group out there—and by their fellow rail campaigners in the next village, the Magor action group on rail. Our frustrations are overcrowding, lack of connecting services and lack of information on electrification. We need to ensure that those concerns are heard as we approach the renewal of the franchises. The debate is a chance to get some of that on record.

The Severn tunnel action group was set up after the last Greater Western franchise, because its members felt that cross-border services were poorly covered. They have campaigned tirelessly for the reinstatement and protection of services, and their aim is to develop Severn Tunnel Junction station, one of the stations in my constituency, to encourage more people on to rail from cars by providing better services. They are a constructive and positive lot who have a lot of rail expertise, but I sense real frustration with the lack of engagement by rail companies. I want to convey that to the Minister as we approach the new franchises.

The latest figures from the Office of Rail Regulation highlight the importance of cross-border journeys to all Welsh rail users, with around a third of the 27 million annual journeys crossing the Wales-England border. Many of those journeys are back and forth to and from the south-west and London. My constituents commute to cities such as Bristol, which offer big employment opportunities, so we need reliable and affordable public transport. However, all too often, people face an unenviable choice: pay the Severn bridge toll—which is too expensive and should be reduced, although that is a topic for another debate and I am sure we will return to it—or run the gauntlet of an often overcrowded and inconvenient train service. Unsurprisingly, given the cost of fuel and the fact that the Severn tolls are whacked up every year, people are increasingly opting for the train service.

Partly as a result of that, we have seen substantial growth in passenger numbers. The Welsh Affairs Committee report “Crossing the border: road and rail links between England and Wales”, which was completed a couple of years ago, picked up on that:

“Cross-border services have seen significant growth in passenger numbers in recent years, and it is expected that demand will further increase in the future. First Great Western said that its Cardiff to Bristol service had seen particularly high growth”.

According to the Office of Rail Regulation, the number of passengers going to and from Severn Tunnel Junction station has increased by 72% in the past seven years. That growth is partly caused by commuters, students and tourists connecting from places such as Chepstow and Lydney. Connections have increased by 192% over the same period. That is a huge growth in usage, and it increases every year.

At the Monmouthshire end of my constituency, there are several new housing developments and more are planned. The same is true of Chepstow and Gloucester. Many occupants of those new homes will commute to Bristol and other cities in England, and they will end up at Severn Tunnel Junction station to catch connecting trains, but the rail service has not kept up with demand. For many years, we have received complaints from commuters, but the service remains the same or even gets worse. The main reason I applied for the debate was frustration with the lack of response from First Great Western to the chronic overcrowding on our commuter routes to Bristol; demand for services to Bristol has greatly increased. In fairness to First Great Western, I should say that I have finally got a meeting with the company next Monday.

After having received many complaints, I recently went out with Severn tunnel action group members to survey users on those commuter trains, and I am in no doubt about how frustrated they are. One of my constituents calls the service “the sardine express”. Commuter trains are always overcrowded and, sadly, it is not uncommon for large numbers of passengers to be left on the station because there is no space in the carriages. The 07.55 First Great Western service has been recorded as leaving more than 30 passengers behind at Severn Tunnel Junction station. Some of those passengers have paid more than £1,500 for an annual season ticket, so it is easy to imagine their frustration and anger. I will share a few comments from commuters whom I surveyed:

“Members of my family catch the 07.55 train from this station as they commute to Bristol. For several months now, the train has been made up of only two coaches instead of what used to be five. We have experienced overcrowding, standing room only, people unable to board, etc, etc. I have written to First Great Western on more than one occasion to complain in the strongest terms, but no avail.”

Another said:

“I sometimes catch a train on the opposite platform and have counted some 100 or so persons waiting on the 07.55 to Bristol! When there are only two carriages, the train is full before it arrives at Severn Tunnel. Completely unacceptable, particularly considering the exorbitant ticket costs in this country.”

Another person recently reported that a passenger had fainted:

“FGW must be in breach of health and safety standards at the very least. Something must be done about this.”

Another commuter directly linked the situation to the effect of the Severn bridges:

“It’s all inefficient. I can’t jump into my car because of the Bridge Tax of £120 per month on the most expensive toll in the country. If I could drive instead I would in an instant. I’ve suffered the pain of these trains for only 12 months. There is no innovation, no new trains, no new operators and prices are set high.”

I have many more examples, but will end on this e-mail from a constituent:

“They just need an extra coach on each train—it’s not rocket science!”

Why is that so hard to deliver?

There is an obvious lack of rolling stock, which has led to a lack of carriages on peak services. There should be five carriages, as constituents have said, on the 07.55 train, but frequently there are three or sometimes even two. I understand that the train company has looked into hiring additional rolling stock to address the shortfall while some of its stock could be away for months on heavy overhaul, but that has not happened. We can only surmise that, as a private business, its financial model means that to do so would not be financially viable, so it has decided not to go ahead. Will the Minister take the matter up with First Great Western following the debate? Does he agree that it is not acceptable for the company to ignore the problem and to ignore complaints from commuters who have legitimate concerns about services they have paid for?

My second complaint is the perennial problem of poor connections, which was covered in the Welsh Affairs Committee report on cross-border transport a couple of years ago, but which has still not improved. Poor connections are not only a problem for those of us who live on the border; they have knock-on implications for those further into Wales. Commuters from Caldicot, Chepstow or Lydney may face a lengthy wait for a connecting service, and poor connections at peak commuting times are common. For instance, there are no trains from Caldicot between 7.40 am and 9.40 am, which is bad for people who are trying to get to work. Stations such as Caldicot have huge potential, particularly among people who want to use them for work, but we need a service that is fit for purpose. Lots of people want to use that service. What can the Minister and his Welsh counterparts do to ensure that the First Great Western service connects better with the Wales and borders franchise, which is up for renewal in 2018? Better connections is a constant grumble, and the matter has been raised by the Welsh Affairs Committee. We need action on better connecting services.

[Albert Owen (Ynys Môn) (Lab)]

I congratulate my hon. Friend on securing the debate and on the work on connectivity that she does on behalf of her constituents.

In the north, we now have better services; there has been huge investment on the west coast over many years, which has provided extra trains. Does my hon. Friend agree that the connectivity between the franchises must be looked at? In north Wales, both are coming up for renewal at a similar time. I am sure that the Minister is aware of that, and that forward planning is being done. Does my hon. Friend agree that there is a need for a direct link from Liverpool to Holyhead, which would bring Dublin and Liverpool closer together? We need to look at the big picture, and we have time to plan to do so before the franchises are renewed.

[Jessica Morden]

I thank my hon. Friend for his intervention. He is exactly right: with the franchises coming up for renewal, we must think strategically. The Government and the Welsh Government must work together for the good of the transport system. They must be constructive so that we can iron out some of the problems. I also agree with his point about the link between Liverpool and Holyhead.

We all support electrification and hope that we will benefit from it soon. As the Welsh Affairs Committee pointed out, it has been an example of good collaborative working and has demonstrated what can be achieved when the two Governments work together on transport—apart from the row over funding the valleys lines. For constituencies such as mine, which will suffer much, it would helpful if the Minister let us know early on what the disruption will be, when the work is to be carried out and what form it will take. We hear talk of the closure of some stations so that work can be carried out on the bridges, but the lack of concrete information is causing confusion. When can we let communities know what will be going on as a consequence of electrification? Staff in my office have asked for information and timetables, but so far we have heard nothing. If would be helpful to know when local commuters will be informed fully.

An example of the uncertainty caused is that commuters at Severn Tunnel Junction raised the issue of the safety of the passenger footbridge, which many rail users feel is unsafe. In fact, an Arriva fire inspector expressed concerns a few weeks ago and Network Rail was forced to do remedial work. If it is unsafe, it must be sorted out, but the latest letter we received from Network Rail—it has been a lengthy correspondence—said that the delay in sorting it out was due to the electrification plans. We have been chasing information about the bridge for some time, but the situation is now critical. The new bridge is funded under the Department for Transport’s Access for All scheme, but is clearly unsuitable as it is now. Will the Minister please intervene with Network Rail, because his Department is funding the improvements? We need action quickly.

I want to discuss the renewal of the Great Western franchise. We have all recently been asked to respond to the consultation on the franchise, which I have done. Rail groups in my constituency want to reiterate to the Minister that whoever is awarded the contract needs to meet commuter demands. In my area that would include a half-hourly or better train service from south Wales to Bristol Temple Meads and Bath; an additional hourly service from Ebbw Vale via Newport and Severn Tunnel Junction to Bristol Parkway, which would provide new journey-to-work opportunities to take advantage of the development and employment sites planned for the area around Bristol Parkway; a minimum of five coaches on the peak services from south Wales to Bristol; a commitment to ensure that train capacity is sufficient for future demand; and greater emphasis in the franchise on working in partnership on interchanges, and on rail companies working together on timetables.

Getting rail services right in my constituency is an important part of the effort to increase economic and employment opportunities, but we should also give commuters the service they deserve, given how much they pay for it. The debate is focused on getting the cross-border services right, but I should also mention the great work that the Welsh Government are doing on the metro system, which could be of great benefit to communities in my area, such as the people of Magor who are campaigning for a new station through the Magor action group on rail.

It is so important for constituencies such as mine that the two Governments work together on rail as we depend on a properly co-ordinated approach and properly thought out train services. I know that other Members will make more general points about other cross-border rail issues, but I am grateful to the Minister for listening to my speech and hope that he will address some of my specific concerns about the franchise.

Severn Bridges (Tolling)

Jessica Morden Excerpts

Wednesday 5th March 2014 Westminster Hall

[Jessica Morden (Newport East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Bone, especially in view of your south Wales connections. I am grateful for the opportunity to debate the Severn bridge tolls. The subject has been debated regularly in this place in recent times and has been given keen cross-party scrutiny by the Select Committee on Welsh Affairs, of which I am a member. The level of tolls on the Severn bridges is a thorny issue. It is an ongoing frustration for constituents and businesses. That concerns me, because I have a toll booth on the edge of my constituency, and it concerns other hon. Members who have constituencies in south Wales and England. I am grateful for the turnout today.

[Mr Mark Williams (Ceredigion) (LD)]

I congratulate the hon. Lady on securing the debate. I emphasise that there are ramifications for a much broader range of people than those who represent the M4 corridor. Those of us in west Wales, haulage industry contractors and the tourist sector have a deep interest as well.

[Jessica Morden]

The hon. Gentleman makes a valid point. As the Welsh Affairs Committee discovered during our inquiry, the tolls have major ramifications for the rest of south Wales. For that reason, I am glad that other hon. Members are here, and I hope that they get a chance to talk about how they have been affected.

As we approach the end of the concession with Severn River Crossing plc in 2018, we need an openness from the Department for Transport and the Treasury about the plans that are being made for when the bridges return to public ownership. The Welsh Affairs Committee published its report on the Severn crossings in 2010, which urged the Government urgently to set up a future strategy for the crossings and called for tolls to be reduced significantly. Four years later, however, we are no further on. The only progress has been to allow people to pay by debit or credit card on the bridges in time for the Ryder cup, and what a long-drawn-out, tortuous process that was.

The tolls continue to go up every year, regardless of the economic climate and people’s ability to pay, and my constituents need some kind of light at the end of the tunnel. It is generally accepted that tolling was necessary to fund the crossings on the Severn, but what was so unfair about the Severn Bridges Act 1992 was that it introduced a concession so rigid and inflexible that the toll cannot be varied to help in difficult economic times without the taxpayer incurring liability. Any request to modernise the bridges receives the stock response that the Government cannot make any changes without extending the concessionary period even further or charging the taxpayer. The situation is unfair, because Severn River Crossing plc is fully compensated for any change that comes along, and it can whack the tolls up year after year in line with the 1992 Act. The Treasury is happy because it keeps the VAT and other tax income, and it quietly does well out of the bridges, but bridge users are stung time after time, and they have to pay more for longer.

I called the debate because I want to articulate the real frustration that bridge users feel, and to ask the Minister explain openly where we are and what the Government are planning. We have learned over the years that information on the finances of the bridges is hard to come by. Mysterious debts spring up, and dates and figures regularly change. I hope that today offers us a chance to get some clarity. If anybody is in any doubt about the effect that the tolls continue to have on the economy, they need only hear what a business man said to me this week:

“the majority of business visitors comment within the first few minutes of a meeting about the toll, never positively, and people feel that it develops a negative impression of Wales—both from a business perspective, but also for those who may return as a potential tourist.”

If every meeting in the offices and factories of south Wales starts like that, something has to be done. It is time that the Government listened.

[Paul Flynn (Newport West) (Lab)]

Does my hon. Friend share my bitter disappointment that the hon. Member for Monmouth (David T. C. Davies), who demanded this week that the Severn bridges be nationalised, is not here to deliver his battle cry to build socialism in our time?

[Jessica Morden]

The hon. Member for Monmouth (David T. C. Davies), who is the Chair of the Welsh Affairs Committee, is away. I know that he would have been here otherwise. We note with interest his conversion to the cause.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

I congratulate the hon. Lady on securing this extremely important debate. She mentioned the hidden costs; the UK Government dropped a bombshell on the Welsh Affairs Committee a year or so ago, when they said that there would be an outstanding debt at the end of the concessionary period, when the bridges returned to public ownership. There is no clarity about the sums involved or how long it will take to pay that debt. Does she share my concern that many of our constituents believe that the Treasury is using the bridges as a cash cow? Without clarity on the matter, the people of south Wales will feel that the Treasury is intent on fleecing motorists for the foreseeable future.

[Jessica Morden]

I strongly agree, and I will say much the same thing in my remarks. The Severn bridge tolls are the most expensive in the UK. It now costs £6.40 for a car to cross the bridge, £12.80 for a van, and £19.20 for a coach or lorry. By comparison, it costs just £1.50 for a car to cross the Humber bridge or £2 to use the Dartford crossing. However, the Dartford crossing is free to use between 10 pm and 6 am, and a scheme was recently launched under which local residents can pay just £20 a year to cross the bridge as often as they like. Those are both examples of the Government stepping in after local campaigns and helping long-suffering road users. If they can help businesses and residents in those areas, why can they not take decisive action to help in the case of the Severn bridges?

The tolls are a cost-of-living issue for my constituents, especially those who commute daily over the bridge, and the cost is a big burden for many businesses that operate out of south Wales. Constituents constantly tell me how hard they find it to absorb the increased tolls each year when pay is frozen, hours are reduced and the cost of living continues to rise. A constituent e-mailed me a few weeks ago to say:

“I’m employed in Yate in Bristol which means I have the daily trip across the bridge. While I had budgeted for the bridge cost, the actual cost of commuting along with the increase in the cost of living is currently causing me great concern. I try to ride an old motorcycle as much as I can”—

a motorcycle can cross for free—

“but I have found the wind protection on both bridges to be unsatisfactory, even in the summer, leading me to balance the cost of taking the car with the danger of taking the motorbike. Therefore, I would really like to take the car every day but the cost is just too high, and as you know the cost has now increased again.”

There is little choice. It costs about £2,400 to commute to Bristol by train using a standard adult ticket. Some of my constituents feel that the yearly toll increases have a knock-on effect on alternative modes of transport, such as the bus or the train, which further restricts their choices. The train service from Severn Tunnel Junction station is frequently full, and commuters are sometimes left standing on the platform at peak times. Those who commute between Bristol and Newport East have a really raw deal, which is a significant barrier to those looking for employment in Bristol. It is one thing to pay the toll once a week or so, but quite another to pay it every day, just to go to work. The local anger and frustration was demonstrated just a few days ago on St David’s day, when 120 local singers re-enacted the Rebecca riots—the men were dressed in traditional women’s clothing, apparently—on the M48 bridge. That shows just how strongly people feel about the matter.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I congratulate my hon. Friend on securing an excellent debate on a crucial issue, and I endorse all the points that she has made so far. She has mentioned individuals, but does she agree that we are also hearing increasingly from businesses? In particular, the Freight Transport Association, which has 700 members across Wales—many of them in my constituency—has talked about the impact that the tolls are having on the small margins in its members’ businesses.

[Jessica Morden]

I thank my hon. Friend for his intervention. I was going to praise the Freight Transport Association for its campaign, so I am glad that he mentioned it, and I very much agree with him. The Newport business man I mentioned earlier also told me about the negative impression of the toll:

“the toll has a major effect on recruitment and retention of staff in both directions. The northern fringes of Bristol across to Cardiff are all very commutable (M4 allowing) but having to build in excess of the £30 per week in to commuting costs prevents a lot of skills transfer between the areas. As an example, an employee of one of my clients told me that the bridge tolls have risen nearly 50% in her time commuting, whereas her salary has risen less than 15%.”

Businesses, particularly those in the haulage industry—I make special mention of the Freight Transport Association’s campaign—say that the tolls mean they bear a cost that their competitors across the bridge do not have to deal with. They have to add the cost on to their bottom line, which hits their competitiveness. Some companies pay in excess of £250,000 a year.

A Welsh Government study, of which I am sure the Minister is aware, shows that scrapping the tolls altogether could improve the economic output of south Wales by some £107 million. The report also shows that for a car journey—excluding commuters and business travel—the toll represents approximately 19% of the costs of a trip between Cardiff and Bristol. For light goods vehicles the figure is 23%, and for heavy goods vehicles it is 21%. The total cost of crossing the bridge for businesses and consumers, once VAT is taken into account, is in excess of £80 million a year in 2009 prices.

That is the impact of the tolls, which I am sure other Members will also articulate, but what can the Government do to help? Every year, when it is announced that the tolls will go up, bridge users ask for them to be frozen, and the Government say that they cannot be, because of the concession. However, the Government wrote off £150 million of the £330 million debt on the Humber bridge, so where there is a will, there is a way. The Government could step in and compensate the concessionaire; they just choose not to. Will the Minister address that point when he responds?

Last year, the Welsh Affairs Committee asked the previous Minister, the hon. Member for Lewes (Norman Baker), to look at a scheme for business—for example, a toll-free overnight period that would help businesses with their costs, as well as easing congestion. The current Minister has replied that the concession would have to be extended to pay for that. I will say it again: the Government stepped in to help with the Humber bridge; why not do so here? Will he clarify his remarks about the TAG concession being the limit of the concession that the Government can offer under European law? It would be helpful to have that explained in person.

Will the Minister also give us some answers on what the Government are planning, as regards where we go at the end of the concession, when the bridge returns to public ownership? The Treasury has done pretty well out of the Severn bridges in previous years. In 2000, the European Court of Justice ruled that VAT must be charged on private bridges. Between 2003 and 2012, the Government accrued an unexpected windfall of £121 million as a result of that change. Estimates from the Scrutiny Unit suggest that by the end of 2013, the figure is likely to be nearer to £135 million.

The Finance Act 2007 started the abolition of the industrial buildings allowance, meaning that the Government held on to an estimated £21.2 million, in 1989 prices, which they would never have expected. I understand that in today’s prices, that would be nearer to £40 million. Although the Government argue that they must continue tolling to recoup the £88 million in costs from unexpected repairs to the first bridge, they have actually accrued more than £160 million from both changes, which is more than enough to write off the existing debt. Will the Minister please update those figures and confirm how much to date the Government have received from VAT, and how much has been saved as a result of abolishing the industrial buildings allowance? The Department for Transport does not seem keen to answer my latest parliamentary question, even though we have had the figures before.

Will the Minister confirm that we are still looking at mid-2018—the last date we had—for the end of the concession? Previous Ministers have alluded to the fact that they would like to continue tolling for two years after the concession ends in order to recoup the Government debt that we have discussed previously—that was admitted to the Welsh Affairs Committee a couple of years ago. Is that still the case? Will the Government publish an updated full breakdown of the outstanding £88 million of debt and how and when it was incurred?

What is the current thinking on the level of the toll? The Minister has just written to the Select Committee to say that VAT would not be collected on a public bridge after the concession ends; will the tolls therefore reduce by at least that amount? If not, and the Government maintain the level of the toll, the Freight Transport Association has pointed out that businesses will no longer be able to reclaim VAT and so could effectively face a 20% hike in tolls. A specific answer on that possibility would be helpful, because we do not want businesses to end up in a worse position.

What serious work has been done on concessions for people who live locally? As I mentioned earlier, people who live locally can now cross the Dartford crossing an unlimited amount of times for £20 a year; that sounds extremely good to me. I hope that we do not hear, again, the stock answer to all such questions: “We have made no decisions about the tolling and do not know what the level will be. We are not there yet.” At the heart of the issue is a strong suspicion that the Government see the bridges as a cash cow, or even—as was suggested to me—a river of money. The concessionaire is in a win-win situation, as it can increase the tolls every year and be compensated for any changes. Meanwhile, the Government receive more than they expect through VAT and other income, while the poor old user has to pay more for longer.

In its 2010 report, the Welsh Affairs Committee recommended that, come 2018, tolls be reduced to a maintenance-only level, which would be very much supported by my constituents. We called for transparency on the financial arrangements of the bridges, and for discussions on ownership to be considered. We also asked the Government to consider off-peak rates for businesses, and local concession schemes for residents. Four years on, we have very little detail on anything. May we please have some answers today?

--- Later in debate ---

[Mr Harper]

All I am suggesting at this stage is that the Minister does not rule out considering that in the future. Of course, the tolls would not be in perpetuity, but I do not want to rule them out. The hon. Gentleman needs to reflect on the fact that the bridges do not affect just Wales. The bridges are three quarters in England; as I said, the old Severn bridge is wholly located in England, and it affects my constituents in England just as much as it affects his constituents in Wales. It is important for the House to remember that the debate about the Severn crossings and the tolling regime is not just a Welsh issue, but an English one too; and that it does not affect just south Wales, but, as the hon. Member for Ceredigion (Mr Williams) mentioned, the rest of Wales. This is a wider question, and we need to look at the economic impact on Wales and on England—in Newport West, Newport East and my constituency—and make a balanced judgment.

I was clear in my remarks: I would prefer another crossing over the River Severn that does not have tolling and that does not require tolling on existing crossings. However, I am realistic enough to know that, given the state of the public finances, caused largely by the Government whom the hon. Member for Newport West (Paul Flynn) supported, difficult decisions have to be made. There is a debate to be had about whether we can have the infrastructure sooner by funding some of it from tolling. That debate is worth having, and I want to put it on the table. I am asking the Minister not to make decisions today for a position four and a half years in the future and rule things out that we may have cause to regret. That is all I am asking him to do. I have asked the Highways Agency to undertake some option appraisals, so that we can have a sensible and balanced debate in the future.

[Jessica Morden]

It will come as no surprise to the hon. Gentleman that my priority is for the tolls to come down for my constituents and businesses post-2018, when the concession ends. However, does he think that the current level of tolling is acceptable?

[Mr Harper]

The debate I always have with my constituents is simply to remind them that both Severn crossings had to be constructed and paid for, and that the toll revenue simply repays the cost of providing and operating the crossings. There is a trade-off: if we did not increase the toll each year—of course I understand why that is unpopular; I would prefer it not to go up as well—we would extend the concession period. That is a trade-off the Government have to make. The option would be open to the Government, as it was—I remind the hon. Lady—to the previous Government, whom she supported. For 13 years, they did not make any amendments—by choice—to the tolling regime. They did not do any of the things that she is suggesting, just to put the issue into context.

While it is tempting, we must be honest with our constituents that things have to be paid for, and they can be paid for in only one of two ways, one of which is for the cost to fall on the general taxpayer. Although the public finances have been hugely improved by the difficult decisions taken by the Government, they are in a state because we inherited them from the previous Government. There is no magic money tree to pay for the toll revenue. If we sweep the toll revenue away—I know how tempting that would be—either cuts will have to be made elsewhere, or taxes will have to rise. Politicians owe it to our constituents to be honest and frank with them. There is no magic money tree, and the bills have to be paid.

[Jessica Morden]

If we are to be honest with our constituents, does the hon. Gentleman accept that we should point out that the Government have now benefited by more than twice the debt on the bridge from unexpected tax income as a result of changes related to the bridges? The Government have actually done well in terms of VAT and other tax changes.

[Mr Harper]

That is a perfectly reasonable point, which of course has to be balanced—I am sure the Minister will set this out—against some of the costs. I am clear: I want the tolls to come down; they can certainly come down by the level of VAT. I certainly think that they can come down. All I am asking is that at this point the Minister does not suggest that the tolls are swept away, if the cost of removing them would mean that a future crossing over the River Severn either never happened or only happened at some far distant point in the future. I am only asking him not to make that decision today, given that we have not properly considered the arguments.

--- Later in debate ---

[Richard Burden]

I will address the UK Government and the Welsh Government in a while, but the substance of the hon. Gentleman’s point is correct. Working out the meaning of “local” is complex. I am simply saying that the Government should not close the door. They should consider it and see what is feasible, and they need to do so relatively quickly because decisions have to be made in the near future. The situation has gone on long enough.

[Jessica Morden]

That is the point. We do not know whether the Government are even considering the measure. We want clarity.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)]

It is a pleasure, as always, to serve under your chairmanship, Mr Bone. First, I congratulate the hon. Member for Newport East (Jessica Morden) on securing this debate on the Severn crossings. Before I discuss the tolls on the Severn crossings, I make the point that it has been the policy of successive Governments since 1945 that crossings on estuaries should be paid for by the user rather than by the taxpayer. Successive Governments have taken the view that tolls on all such crossings are justified because the user benefits from the exceptional savings in time and money that those expensive facilities make possible.

It might be helpful if I give a brief outline of the history of the Severn crossings, some of which is relevant to the issues that have been raised. The first Severn bridge was opened by the Queen in September 1966, providing a direct link from the M4 motorway into Wales, with a toll in place for use of the bridge to pay for the cost of construction. In 1986, the Government said that a second bridge would be constructed. In July 1988, they announced that the private sector would be given an opportunity to participate in the scheme, and in April 1990 they announced the selection of the bid led by John Laing Ltd with GTM-Entrepose to design, build and finance the second crossing. That consortium was also to take over the maintenance and operation of the existing Severn bridge.

In October of that year, the concession agreement between the Government and Severn River Crossing plc was formally signed. In February 1992, the Severn Bridges Bill received Royal Assent. The concession agreement was enshrined in an Act of Parliament and commenced in April 1992. Severn River Crossing plc then took over both the operation and maintenance of the present bridge and the construction of the new bridge. The concession agreement was structured so that certain risks were borne by the Government, rather than by Severn River Crossing plc, for example, costs relating to latent defects on the first Severn crossing. By bearing those risks, the Government could finance the construction of the second crossing and maintenance of the crossings at a much lower cost. If those risks had been included in the concession arrangement, the tolls would have needed to be higher or the end of the concession would have been longer than under the current arrangement.

Construction of the new bridge started in September 1992, and the new crossing was opened on 5 June 1996 by the Prince of Wales, almost 30 years after the opening of the first bridge. As part of the concession agreement, Severn River Crossing plc is authorised to collect tolls to meet its financial obligations. The tolls repay the construction and financing costs of the second Severn crossing, the remaining debt from the first existing crossing from 1992 and pay for the maintenance and operation of both crossings. It is worth stressing that that is the company’s only source of income. The concession period is limited to a maximum of 30 years. The actual end date will be achieved when the concessionaire has collected a fixed sum of money from tolls, which is £1.029 billion at 1989 prices.

The Severn Bridges Act 1992 applies a clear structure to the tolls to give the concessionaire confidence that it will be able to meet its liabilities and manage the risks that it accepted through the concession agreement. The toll levels were set for three categories of vehicles at the time of tender and are embodied in the 1992 Act. The Act sets out the tolling arrangements and the basis for yearly increases in the toll rates. Toll rates are fixed in real terms. The new rates are introduced on 1 January each year and are increased in line with the retail prices index using a formula, and rounded to the nearest 10 pence.

The shadow Minister, the hon. Member for Birmingham, Northfield (Richard Burden), asked about the possibility of introducing free-flow tolling on the Severn crossing, as is to be introduced on the Dartford crossings, but that depends on decisions on future charging arrangements that are yet to be taken. For example, it would be imprudent to invest in an expensive tolling system that operated for only three or four years, were the Government of the day to decide to discontinue charging. We would need to assess the costs and benefits of free-flow tolling on the Severn crossing as we did on the Dartford. However, as a general principle, the Government support moving towards more efficient ways of collecting tolls, which benefit traffic flow.

[Jessica Morden]

As the Minister looks toward the end of the concession in 2018, could he address the VAT issue and clarify what was meant in the letter sent to the Welsh Affairs Committee this week? When the VAT charge comes off the bridges, because they return to public ownership, will that mean a reduction in the tolls, or are the Government planning to keep the tolls at the current level?

[Mr Goodwill]

I thank the hon. Lady for that question. From 2003, when VAT was imposed, to 2012, about £120 million gross has been collected. However, some business users will have reclaimed a fair proportion of the VAT. It is the case that when this Parliament comes to an end, it would be open to the Government of the day to make a decision as to whether they continue to charge the same fee, or reduce it by 20% or whatever the prevailing rate of VAT. No decision has been made, and I suspect it would be above my pay grade to make that particular decision. It is probably slightly early to consider that point.

[Jessica Morden]

Will the Minister provide us with an update on the money that has been collected to date, since the VAT changes and the changes in the industrial buildings allowance, so that we can have a full update of how much money the Government have collected so far? I am happy for him to write to us.

[Mr Goodwill]

Yes, by all means. I have given the hon. Lady the latest figure on the VAT. If I may, I will write to her with a more up-to-date figure on the VAT, if we can get hold of it, and also on the buildings tax that she mentioned.

[Mr Goodwill]

Yes, it would be reasonable to assume that most business users reclaim the VAT, so when we write to Members participating in this debate, we will estimate that level. When there is talk of the Government using this as a cash cow, it must not be forgotten that every vehicle saves 52 miles by crossing one of the crossings, but on the long journeys going the long way round, they would actually be paying a fair amount of fuel duty. So it is not simply that the Government benefit from the VAT; there is actually a loss in terms of the amount of fuel revenue that otherwise would have been collected.

I want to stress an important point: the Secretary of State does not have the authority to reduce Severn tolls without amending primary legislation and obtaining the concessionaire’s agreement. The concessionaire would not be able to agree to anything that would affect its net revenue without compensation and agreement from its shareholders and lenders, which would result, if such an agreement were forthcoming, in a cost to the taxpayer. Any discounts or exemptions are a matter for the concessionaire to decide, provided that those provisions comply with existing legislation, such as the Eurovignette directive. Where that is not the case, such schemes cannot be introduced without changes to the concession agreement.

Discounts of 10% for vehicles of over 3.5 tonnes, and 20% for other vehicles, are offered by way of a season TAG, based on 22 trips per month. Blue-badge holders and the emergency services are exempt. There are significant discounts for users, including businesses that make multiple trips per day. Tolls are charged in a westbound direction only, from England into Wales. The current toll prices are: £6.40 for cars; £12.80 for vans; and £19.20 for vehicles over 3.5 tonnes.

Once one-way tolling and the distance saved owing to the existence of the crossings are accounted for, Severn tolls compare favourably with toll levels on other crossings. On the points raised by the hon. Member for Newport East, I can give some examples. The toll for a car is £6.40, but, with the free return journey, it is equivalent to £3.20 for a saving of 52 miles; the Dartford toll is £2 for a saving of 22 miles; and the Tyne tunnel has a charge of £1.60 for a saving of only eight miles.

The hon. Member for Birmingham, Northfield mentioned lorries. In the case of the Humber bridge, lorries pay £12.50 for a saving of 45 miles, whereas on the Severn crossing—if we divide by two for the free return—it is £9.60 for 52 miles. Some of the comparisons made with other crossings in the country do not necessarily bear scrutiny, or perhaps Members can pick their example to support their case.

[Jessica Morden]

Does the Minister also accept that the Government stepped in recently to the tune of £150 million to reduce tolls on the Humber bridge? If they can do that on the Humber, why can they not do it for the Severn bridges?