German urges Minister to freeze Severn Bridge Tolls

12.00.00am GMT Mon 3rd Nov 2008

Welsh Liberal Democrat leader Mike German has urged UK Transport Ministers to use their powers to freeze the Severn Bridge tolls, which are set to rise by 5% next year.

Mr German, a former Minister for Economic Development, believes a one-off freeze in the tolls would be a gesture of goodwill to the Welsh economy during these difficult times.

In a clash with First Minister Rhodri Morgan last month, Mr Morgan claimed that such a freeze was impossible. But further analysis has revealed that section 10 of the 1992 Severn Bridges Act permits Ministers to vary the tolls.

Mr German said: "Despite Rhodri Morgan's confusion, the legislation is very clear: the Minister can introduce an order which 'does not implement the increase or implements it only in part'.

"The normal formula for raising the cost of getting in to Wales uses the rate of inflation for September. But this September that rate was the highest it has been for 16 years - and is likely to be noticeably lower by the time the rise is introduced on January 1.

"That means that while tolls may rise by 5%, people's ability to pay is unlikely to keep pace.

"These rises are likely to have a negative impact on businesses on both sides of the bridge, but particularly in Wales, where the bridge tolls already act as a barrier to business.

"These powers were put in to the act to ensure that in exceptional circumstances, the tolls could be frozen, or the price rise reduced. The Minister has the power.

"Freezing the tolls would be a goodwill gesture to Wales, and a boost to the whole Severnside economy. There would be no impact on government funding either - only that Severn Crossings Plc will continue to receive its payments over a slightly longer term. It's a win-win situation.

"The Minister has the power to make it happen. She should use it."

Notes:

Mike German has written to Rosie Winterton calling for a suspension of the annual up-rating of Severn Crossings Tolls for the year 2009.

The suspension can be done by order.

Copies of the letter are available on request.

To see the relevant legislation.

http://www.opsi.gov.uk/Acts/acts1992/ukpga_19920003_en_2#pt2-pb2-l1g9