Highways (Financing) Bill (Fourth sitting) Debate

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Department: Department for Transport
None Portrait The Chair
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I remind the Committee that with this we are discussing the following:

Amendment 78, in clause 4, page 4, line 27, at end insert—

“(v) any mayoral combined authority, combined county authority or local highway authority whose area includes, or is likely to be affected by, a highway specified in the proposed licence.”

This amendment would require licensing authorities to send a copy of the notice to mayoral combined authorities, combined county authorities or local highway authorities who may be affected.

Amendment 87, in clause 4, page 4, line 27, at end insert—

“(c) prepare, consult upon, and publish a report assessing—

(i) the anticipated impact of the specified highway on traffic volumes, congestion, and highway wear across local road networks maintained by adjacent local highway authorities; and

(ii) the specific traffic management, infrastructure, and financial mitigation measures required to address any adverse impacts identified under subparagraph (i).”

This amendment requires the licensing authority to publish a comprehensive local road impact and mitigation report prior to granting any licence, ensuring that traffic displacement onto surrounding local council roads is fully evaluated and mitigated in advance.

Clause stand part.

Olly Glover Portrait Olly Glover (Didcot and Wantage) (LD)
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It is a pleasure to serve under your chairship, Ms Lewell. I think where we got to before we adjourned was that we would withdraw amendment 45, but press amendment 87 to a Division, so I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendment proposed: 87, in clause 4, page 4, line 27, at end insert—

“(c) prepare, consult upon, and publish a report assessing—

(i) the anticipated impact of the specified highway on traffic volumes, congestion, and highway wear across local road networks maintained by adjacent local highway authorities; and

(ii) the specific traffic management, infrastructure, and financial mitigation measures required to address any adverse impacts identified under subparagraph (i).”—(Olly Glover.)

This amendment requires the licensing authority to publish a comprehensive local road impact and mitigation report prior to granting any licence, ensuring that traffic displacement onto surrounding local council roads is fully evaluated and mitigated in advance.

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Justin Madders Portrait Justin Madders
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I was about to sit down, but there are publication requirements in clause 78, which will deal with a number of the issues that the hon. Member referred to, so I request that the Committee reject the amendment.

Question put and agreed to.

Clause 5 accordingly ordered to stand part of the Bill.

Clause 6 ordered to stand part of the Bill.

Clause 7

Tolling and other mandatory conditions

Olly Glover Portrait Olly Glover
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I beg to move amendment 39, in clause 7, page 6, line 11, at end insert—

“(c) a condition requiring the holder of the licence to compensate affected local highway authorities for extraordinary maintenance costs, traffic management or congestion mitigation arising from any increased traffic as a result of vehicles avoiding tolls on the chargeable highway.”

This amendment ensures that local authorities are compensated for the knock-on costs of increased traffic on local roads as a result of drivers aiming to avoid the toll road.

None Portrait The Chair
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With this it will be convenient to discuss the following:

Amendment 40, in clause 7, page 6, line 11, at end insert—

“(c) a condition requiring the holder of the licence to establish a scheme for issuing automatic partial or full refunds of tolls to users in the event of significant traffic delays as a result of roadworks on the specified highway.”

This amendment would ensure that license conditions must include automatic refunds for drivers who face severe delays as a result of roadworks.

Clause stand part.

Amendment 72, in clause 103, page 67, line 18, leave out lines 18 to 21 and insert—

“after the Secretary of State has published a report setting out the proposed licence conditions including proposed arrangements for setting toll levels and approving any increases.”

This amendment would prevent the Act from coming into force until after the Secretary of State has published a report setting out the proposed licence conditions including tolling arrangements.

Olly Glover Portrait Olly Glover
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It is a pleasure to serve under your chairship, Ms Lewell. Amendment 39 would create a mechanism for compulsory compensation for local councils as a result of additional traffic due to people avoiding tolls.

Local council taxpayers must not be forced to subsidise private toll road profits by picking up the repair bill for local roads damaged by heavy diverted traffic. As Declan Pang of the Road Haulage Association noted in front of the Committee last week, local A and B roads are heavily used by small businesses and hauliers, and severe wear caused by toll evasion can hurt the wider local economy.

Placing compensation in clause 7 would make it a binding legal condition so that private operators cannot bypass or negotiate away the wider impacts. One of the reasons I have tabled the amendment is because of the problem with the current roads funding formula. It is based overwhelmingly on miles rather than use levels. Higher use of existing roads would not necessarily lead to more funding for local authorities as a result, so we need a mechanism to deal with that.

Amendment 40 would, in effect, extend the delay repay concept from the railway to toll roads. It would mean an automatic toll refund scheme that issues partial or full refunds to drivers trapped in severe congestion, roadworks or operator-induced disruptions would come into existence. Motorists paying premium commercial tolls expect a reliable, free-flowing journey and should not be charged full price when the operator fails to maintain traffic flow.

Drawing on European tolling models, the Italian network has a motorway refund system, which creates a direct financial incentive for operators to clear incidents and manage roadworks efficiently. Currently, operators do not always manage to do that here. We are not necessarily saying that that is the right system for the UK context, but it is an illustration of what is possible and an example that the Minister may wish to consider.

As Edmund King told the Committee last week, if drivers pay a higher toll under an independent business model, it must work both ways, giving drivers money back when the road fails to operate properly. I look forward to hearing the Minister’s comments.

Greg Smith Portrait Greg Smith
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I largely wish to comment on amendment 72 in my name and that of my hon. Friend the Member for Bognor Regis and Littlehampton, but before I do so, I will speak briefly to amendments 39 and 40.

The hon. Member for Didcot and Wantage makes a good point about the increased use of local roads that feed vehicles on to new infrastructure, such as the lower Thames crossing, or indeed bring motorists—be they private motorists or haulage operators—off those pieces of new infrastructure. The current modelling that finances local highway authorities—predominantly councils—up and down the land has no mechanism whatsoever for acknowledging the point that the hon. Member makes. When traffic flows are massively increased on an existing road, those surfaces very quickly degrade and start to resemble the surface of the moon. I am sure we all see that in our own constituencies. It something that drives all of our constituents—and me—absolutely potty on a daily basis.

I see that in my own constituency, where we have seen a large amount of big infrastructure being built over recent years, such as East West Rail. That happens where compounds are put in for heavy goods and groundworks vehicles. The traction zones where those vehicles are accelerating to pull out, or braking to come in, as they go to site, move earth away and bring aggregate in, very quickly degrade.

It makes sense to take into account where an existing local road—one that is owned by a local highway authority and is the responsibility of local council tax payers—is suddenly asked, as they will be in the case of the new lower Thames crossing and potentially other schemes in the future, to be used for infrastructure projects. There should be a flow of funding, either from the licensee or from the Government through the Department for Transport, and ultimately the Treasury, that ensures that council tax payers in local areas are not asked to pick up the bill—as my council has been asked to do for roads broken by HS2 construction—for the construction of the lower Thames crossing and other schemes under the Bill. Indeed, they should not be asked to pick up the bill for the ultimate operation of them, either. I have some sympathy for amendment 39 tabled by the hon. Member for Didcot and Wantage.

Amendment 40 is a more problematic proposition. I do not disagree with the sentiment. No one can tell us what the toll on the lower Thames crossing would ultimately be, but we can presume it to be commensurate with the M6 toll, where an average vehicle pays £7 or £8. Therefore, it makes eminent common sense, and is surely reasonable, that someone would be entitled to some sort of compensation, or money back, if they paid the toll but then got snarled up in a traffic jam and just sat in a queue that they could have sat in on the original M6 anyway. I have sat in a jam on that road many times over my life.

The problem with the proposition that the hon. Member for Didcot and Wantage has put forward is how that would be determined. With trains, delay repay is very straightforward: what time does the train ultimately pull into the destination station? That is very clear: it is either on time or a number of minutes late. Certainly, since Chiltern Railways was nationalised, I have been on late trains from my constituency every single day, but that is beside the point.

However, how is that level of delay really determined in a private vehicle? Everyone’s journey will be slightly different. What is to stop someone from deliberately driving slowly in order to avoid paying the full toll, artificially making their journey seem longer? Is it for the ORR to determine whether someone has had a longer than usual journey? How will they determine that without—and I do not want to sound all conspiracy theorist—some level of state snooping on people’s exact movements in order to determine how long that journey actually took them?

Olly Glover Portrait Olly Glover
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The shadow Minister gives me an opportunity to say something I omitted from my notes—despite everyone’s obsession with Google, it is incapable of formatting a document properly when it is printed, but that is for another day. The Italian model calculates a base amount for roadworks, plus an extra amount for time lost. One qualifies after any delay on a trip up to 30 km, after a 10-minute delay on trips of 30 to 50 km, or after a 15-minute delay on trips over 50 km. I do not know how they determine that. It may be through some sort of monitoring system, and we already have that in many formats, such as automatic number plate recognition. The Italians are not generally well known for welcoming state surveillance. That is just one mechanism, and I am sure that many options are available using 21st-century technology.

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Justin Madders Portrait Justin Madders
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I thank the hon. Members for Mid Buckinghamshire and for Bognor Regis and Littlehampton for their amendment.

The hon. Member for Didcot and Wantage tried to make a noble case for something that this Government are already dealing with through the record funding for highways maintenance that we have announced and are already delivering on. I understand the thrust of his argument about compensation to local highway authorities for displaced traffic. The right approach is to undertake an assessment of the whole strategic road network, to understand what improvements and likely increases to overall capacity could achieve more widely. Then, we should assess the impact if we do not proceed.

Of course, the whole thrust of the Bill is to reduce congestion, not increase it. As my hon. Friend the Member for Dartford has said on many occasions, we know that his part of the country is already at bursting point. We know what happens when things go wrong at that vital section of the strategic road network. There are already local problems as people try to find alternatives to avoid the congestion it has caused. That is clearly not because people are trying to avoid the toll, which has been in place for many years; it is actually about the lack of reliability at that vital pinch point. The answer is not to compensate people for delays caused by trying to avoid that unreliability; the answer is to make the Dartford crossing more reliable so that people actively choose that road.

Olly Glover Portrait Olly Glover
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The Minister, as he has in a few of his speeches, is talking as if the Bill is only about the lower Thames crossing, but it is not. It is much broader than that, as he has acknowledged, although it is focused on the lower Thames crossing. If the Bill was just about the lower Thames crossing, I might well agree with his argument, as there are no alternatives in that particular case. But as drafted, it is not just about the lower Thames crossing, is it?

Justin Madders Portrait Justin Madders
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The hon. Gentleman is absolutely correct that the Bill is scheme-agnostic, but as the lower Thames crossing is the only scheme we currently have in mind, it is helpful to draw examples from that for why the amendment is not acceptable.

It is probably also worth pointing out that I am not aware of any other such toll schemes operating in this country at the moment. Is it his position that this compensation measure should be extended to the Mersey tunnels or the Mersey Gateway crossing, for example? My local transport authorities might be interested to hear that, and they might wonder where the funding would come from.

As I have said, the whole purpose of the Bill is to create the regulated asset base model that will fund the crossing. It will be a separate income stream from the general roads budget, and those who benefit directly from the new infrastructure will pay for it. It will improve the reliability of the whole network, which is the correct approach and is far more effective than trying to compensate people for an already overstretched and failing network.

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Clause 4 already requires the licensing authority, be that the Secretary of State or the ORR, to consult on a licence before it can be granted. In my view, that is adequate consultation on licence conditions, and consultation at an appropriate time. Requiring the publication of a report before a licence comes into force would delay the process and add inefficiency. It would also be duplicative. As I have said several times already, we have been waiting an awfully long time for this project to proceed, and I am afraid this amendment would further delay an already elongated process.
Olly Glover Portrait Olly Glover
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I am grateful for the Minister’s comments. On amendment 40, the Minister said that delay repay could incentivise toll road operators to do less maintenance, but I disagree. It would incentivise them to do maintenance efficiently and at appropriate times, such as overnight, rather than making a case for recreating the Conservative party’s cones hotline of the 1990s. One sometimes sees plenty of cones and lane closures out there with very little work taking place.

In light of the shadow Minister’s offer to work collaboratively on a proposal, and of my offer to help him with his conspiracy theories of state suspicion, I will leave amendment 40 for another day. However, I will press amendment 39 to a Division.

Question put, That the amendment be made.