Severn toll hike holds industry to ransom and highlights contractual shortcomings, says FTA
Tuesday 29 November 2011
Lorry operators using the Severn crossing, already the most expensive toll in the UK, will be forced to pay an extra 90p in the New Year. The Freight Transport Association has condemned the decision made by Severn River Crossing plc (SRC) – the bridge’s builders – to once again foist up the charge for heavy goods vehicles to use this vital trade corridor, this time from £17.20 to £18.10, claiming it will make things much tougher for businesses on both sides of the river.
Ian Gallagher, FTA’s Policy Manager for Wales, said:
"It would seem that under the current contract the users of the Severn crossings are at the mercy of cynical charges to use what is for the haulage industry an essential piece of infrastructure.
"This nightmare of successive, above-inflation annual price hikes will end in 2017 when the bridge is back in public hands. But what this situation highlights is the need for private sector infrastructure projects in the future to more carefully consider the contractual terms so that those affected are not held to ransom with unreasonable demands."
FTA has suggested amending the current contract with SRC to reduce the level of tolls but to levy them over a longer period of time. This would still accrue the same level of income but would place less of a burden on businesses. FTA is also advocating a lower tariff for night-time crossings for commercial vehicles.
"Severn tolls already cost companies many thousands of pounds a month; this latest price hike will make life a lot tougher for hauliers who cross from England into south Wales and comes at time when companies are already struggling in the face of higher fuel costs. In an industry with notoriously tight profit margins, road freight operators often have no choice but to pass their costs on to the customer, which stokes inflation and is certainly not good news in a faltering economy.
"Clearly, the Severn Bridges Act needs amending, and the sooner the better."
FTA Press Office