Sarah Green column

Feb 27 2007 By Sarah Green, The Journal

Road pricing has reached parts of the UK electorate that other policies have failed and has motivated the normally apathetic British public to make their voices heard: 1.8 million people have petitioned the Government online not to introduce road charges for motorists.

In CBI North East member surveys, transport is the most often cited headache for business. There is a recognition that something needs to be done quickly to tackle the increasing delays and costs caused by poor transport infrastructure. But what do our members think about road pricing?

It's difficult to get enthusiastic about the idea, but the prospect of continuing growth in congestion is far worse. Following decades of under-investment in transport, jams have become a real brake on companies' ability to get the job done, harming the economy.

We can't simply build our way out of trouble. Charging drivers for the road space they use, at prices that reflect demand in different locations and at different times, is therefore likely to form part of the solution.

The benefits are potentially huge - by 2025 road pricing could halve congestion, lifting economic growth and saving firms and individuals huge amounts of time - but it is vital to get the details right.

Charging has to be part of a coherent set of measures that give genuine alternatives to those travelling. The Government must not use it simply as a substitute for vitally-needed investment in roads and public transport.

The central objective has to be to reduce congestion in the North-East - not to become a convenient revenue-generator. And if more money is raised than is returned through cuts in road tax or fuel duty, it should be treated as additional resources to be spent improving the transport system in our region.

Any scheme must also be kept simple so it is not an administrative headache for drivers and companies.

There is a great deal to be done to gain a greater understanding of how road pricing would work in practice. It is critical that this work continues - and that must include better communication by the Government - both nationally and locally - about why it is contemplating heading down this road and what the benefits could be.

If you want your views heard, CBI is holding a road pricing debate on March 29 at 12.30 at PD Ports, Middlesbrough. Contact Sarah.Green@ cbi.org.uk