The Debate: Is a 10p rise in tunnel charges justified?

Feb 5 2008 by Alan Weston, Daily Post Staff

Commuters are furious at rise in tunnel tolls. Alan Weston reports

IT WAS the news that all regular users of the Mersey tunnels between Liverpool and Wirral did not want to hear.

A meeting of the Passenger Transport Authority yesterday voted to increase the tolls for cars using the Kingsway and Queensway tunnels by an extra 10p per journey, taking it up to £1.40 from April 6.

Other drivers face even higher rises. Class 2 vehicles, which include small goods vehicles and coaches, will pay £2.80 – £1.50 more than the current price.

Operators Merseytravel defended the increases on the grounds that they would manage demand for the tunnels and help tackle road congestion.

They also said tunnel tolls have risen comparatively slowly over the years – the last increase was in April, 2005 – and that they have resisted increasing them even more on this occasion.

Under the controversial Mersey Tunnels Act 2004, Merseytravel was given the power to increase tolls in line with inflation, without having to hold a public inquiry.

However, their arguments have cut little ice with tunnel users, businesses and politicians, who have described the tolls as a "tax on Wirral."

In particular, the Mersey Tunnels Users Association – which has long campaigned for the tunnels to be free – said drivers are being used by Merseytravel as a "cash-cow."

They are also unhappy that the extra money is being used to fund other public transport schemes on Merseyside which tunnel users do not benefit from.

Today we ask: Are the Mersey tunnel toll increases justified?

* THE advertised debate about ship-breaking on the Mersey will appear soon.

alanweston@dailypost.co.uk

NO: The Case Against - If the tunnel is the only route, then it should be free

by Paul Molyneux, Wirral branch chairman of the Federation of Small Businesses

I WAS staggered to read about  these toll increases.

While the majority of our  members who use the tunnels  drive vehicles which fall into the  Class 1 category of tunnel toll,  those with Class 2 vans and  lorries face an extremely high  increase.

Many will be forced to pass this  increase onto their customers in  the form of higher prices, which  reduces their ability to compete  with businesses who don't use the  tunnels and bigger businesses  who can more easily absorb the  cost.

For small businesses, a car  or van is not a luxury but an  essential tool of the trade.

Most small businesses carry  out much of their trade within 50  miles of their base and so their  vehicles are an integral part of  their business. 

Some people in Liverpool do  travel to the Wirral but a lot of  them are put off by the tunnels.

But, if you're from Wirral, then  to expand your business you've  got to travel - that's it. We are  stuck with the tunnels.

Wirral is in a unique position  because it's surrounded on three  sides by water.  The only way to  Liverpool is through the tunnels  or going across the Runcorn-Widnes bridge.

To me, it makes no sense that  it's going to be cheaper for some  people to drive all the way down  to Runcorn, cross the bridge and  go back into Liverpool.

We talk about climate change  and carbon footprints and then  drivers are forced to do that.

What Merseytravel is saying is  that 75% of vehicles that come  into Class 2 are coaches.

They had lowered the Class 2  rate so coach companies could  pass on a reduction to their  passengers to encourage more  people to use public transport.

Merseytravel say that reduction  has not been passed on to  passengers - how they know this,  I don't know - and so the toll is  now going up again.

But what about the other 25% of  Class 2 vehicles? The majority of  those are going to be from small  businesses who are being hit by  many other cost rises, from fuel  price rises to increasing  regulatory costs. They're out to  earn a crust and they're getting  hammered by costs like these.

We would like to see all tunnel  and bridge tolls scrapped. They  managed it in Scotland. 

If the tunnel is the only route  between two places, then it should  be free.  It's different if there's an  alternative, like the toll road  around Birmingham -  you can  pay the toll or go the other way.

We at the Federation of Small  Businesses believe that removing  road tolls across the UK will  reduce the overall cost on  business and remove a significant  barrier to business growth. 

I've had a lot of support after I  was featured in the Post talking  about this issue. I've had many  texts and phone calls from  business people who are  supporting me 100%.

If they've got to have tolls, make  them fair. I don't think these rises  are fair.

YES: The Case For - Inflationary price rises exist in every facet of life

by Cllr Mark Dowd, chairman of Merseytravel

THE Mersey Tunnels Act 2004  requires Merseytravel to keep  tolls in line with the retail price  index - inflation to you and me.

Inflation is not unique to  Merseyside or to tunnels.  Inflationary price rises exist in  every facet of life, food, drink,  petrol, dare I even say newspapers  - the cost of a Daily Post has risen  from 40p in 2005 to 55p when I  bought my copy this morning.

The increases are only half the  amount we are able to charge  under the Act. The last increase  in tolls for regular car users and  "white van man" (Class One) was  10p in 2005. I cannot believe a 10p  increase three years later will  bring the Merseyside economy  to a grinding halt.

Operating and  maintenance costs of the  tunnels (lighting, ventilation,  pumping, maintenance, policing,  etc), which are vital to ensure  public safety, do not remain static.  They rise with inflation, usually  more.

The Tunnels Act was put in  place for a number of key reasons,  firstly to ensure the tunnels are  on a proper financial footing for  the first time ever and do not have  to be supported by the taxpayers  of Merseyside as happened over  many previous years.

When the tunnel debts  are paid off, in 2048, the  PTA are required to  consult the people of  Merseyside on whether  the toll levels should  remain where they are at  that time, or be reduced to  cover operating costs only.  We have to manage the demand  for the use of the tunnels. If they  were free, who would pay for their  upkeep, the staff, engineers and  police officers?

Any surplus toll revenue can  only be used to support schemes  in the Local Transport Plan for  Merseyside. A similar situation  exists in London, where the  congestion charge levied by Transport for London has to be used  to support public transport  investment.

The Mersey Tunnels are some  of the safest stretches of road in  the UK. That hasn't happened  accidentally. We have spent  millions of pounds upgrading and  improving both tunnels, over and  above what is required in  European legislation, including  the new £9m escape chambers in  Queensway.

We are investing huge amounts  of money into the safety and  security of the tunnels, which are  now independently audited as the  two safest tunnels in the UK.  Queensway is the safest tunnel for  its age in the whole of Europe.

The Mersey Tunnels have an  extremely good safety record and  we are spending some £35m every  year upgrading and improving  them to ensure we maintain this  record. It is money well spent.

I think I speak for the whole of  the Passenger Transport  Authority when I say none of us  like to increase the tunnel tolls,  we know additional costs can be a  burden on some people. However,  it is vital we continue to find ways  to make the tunnels the very best  they can be.  Unfortunately, that  can't happen without investment.