Road Schemes (Finance)

Oral Answers to Questions — Transport – in the House of Commons at 12:00 am on 28 November 1988.

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Photo of Andrew Mitchell Andrew Mitchell , Gedling 12:00, 28 November 1988

To ask the Secretary of State for Transport how many road schemes, under construction or planned, are being financed with private money.

Photo of Mr Michael Portillo Mr Michael Portillo , Enfield, Southgate

The privately financed Dartford-Thurrock crossing is now under construction. The private sector will have the opportunity to finance a second crossing of the River Severn in the forthcoming competition. Since April 1986 agreements have been made with private sector firms to contribute to the funding of 48 trunk road schemes. Local highway authorities are also entering into agreements with the private sector to finance a large number of local road schemes.

Photo of Andrew Mitchell Andrew Mitchell , Gedling

Is my hon. Friend aware that many hon. Members believe that there is a need for greater private sector involvement in road building and road operation, probably through the use of tolls, as a means of meeting the massive difficulties in building up the road infrastructure that is now needed, as well as meeting the massive demand for better roads?

Photo of Mr Michael Portillo Mr Michael Portillo , Enfield, Southgate

I share my hon. Friend's belief that there is great potential for the wider use of private sector funding to improve the efficiency of road building and potentially in helping to meet the public demand for roads through schemes that would not be built under the public sector programme. I recognise that such schemes might need to be funded by tolls.

Photo of Mrs Ray Michie Mrs Ray Michie , Argyll and Bute

Is the Minister aware that in Spain, where privatised roads have been greatly encouraged, the number of accidents on the parallel public roads has increased enormously? Does the Minister agree that privatised roads in this country would not solve our traffic problems in any way?

Photo of Mr Michael Portillo Mr Michael Portillo , Enfield, Southgate

I should like to investigate the evidence that the hon. Lady has put forward because many other factors may be involved. Of course I am keen that roads built in the private sector should be built to the same safety standards as those in the public sector. That goes without saying.

Photo of Tony Baldry Tony Baldry , Banbury

Will my hon. Friend take the opportunity to deny any suggestion that the M40 extension may be tolled, as suggested by Tarmac? Will he also take the opportunity to confirm a suggestion in The Times today, which seemed to be based on a reasonably authoritative leak, that my right hon. Friend the Secretary of State for Transport will announce in the new year that the M40 will be three lanes throughout? I am sure that the House would like that to be confirmed.

Photo of Mr Michael Portillo Mr Michael Portillo , Enfield, Southgate

We had better wait until the new year to confirm what my right hon. Friend may have to say. I believe that the proposal from Tarmac was made by an individual in the company. Nobody has offered money for the M40 to my right hon. Friend the Secretary of State.

Photo of John Prescott John Prescott Shadow Secretary of State, Shadow Secretary of State for Transport

Can the Minister confirm that British road expenditure, expressed as a percentage of the vehicle excise duty collected, has declined from 35 per cent. under the Labour Government to 25 per cent. now, which is the lowest in Europe? Does he accept that if the Government had maintained the same proportion of taxation expenditure on roads as the Labour Government we could have spent £2 billion more on our inadequate roads, rather than on funding tax cuts for the wealthy?

Photo of Mr Michael Portillo Mr Michael Portillo , Enfield, Southgate

Road spending this year is 30 per cent. higher than in the last year of the Labour Government.