Road pricing could be good for North East.... if.....


How about petrol and diesel at around 30p per litre? That's what it should be if the Government really intends to replace fuel tax with road pricing. And, if the road prices were set at a realistically low level in this area and on Scottish trunk roads, it could be good news for North-east families and businesses. But, it's a big "if". Would you trust the government to deliver that sort of benefit at the expense of their beloved Home Counties?

The Government's proposal for road charging could be good news for those of us who choose to live and work in the North East. Inevitably, we rely pretty heavily on roads for our family and business travel and for the transport of goods to and from our markets.

It takes much more fuel to get goods from the North East of Scotland to Europe, than it does from, say, the home counties. That means our products are either not competitive, or the profit margins of our employers are squeezed.

If the introduction of road pricing replaced fuel tax and the mileage rates on our roads were set realistically low, then the move to road pricing could be good news. But, as so often with politicians, it's a BIG "if".

This government has shown itself as being extremely adept at introducing stealth taxes. Alistair Darling said that the proposed mileage charge would replace fuel tax.

1. Does he really mean that fuel tax would be abolished?
2. Would our road pricing be set realistically low, in light of our relative lack of congestion?

If so the equation could work out in our favour, if fuel prices were cut to the 30p per litre (at today's prices) that it should be if it only carried VAT.

Currently it's estimated that the average cost per mile of the additional tax on fuel is around 12p. So, if the average mileage charge we paid for roads was lower than 12p, North East drivers could benefit. But, with the suggested mileage rates varying from 2p right through to £1.34 it is clear that the devil really is in the detail!

But there is another big question that needs to be considered. To work, the system would require every car to have a black box which would report which roads you used and, presumably, when.

How do you ensure that information remains confidential? It's easy to paint it as a sinister 'Big Brother' state. Quite apart from the massive civil liberties issues, I would not want any potential burglars knowing that I had just parked my car at the airport and was away from my property.

So, there are many questions without answers before we look forward to a possible fairer deal for North-east road users.

Posted: Tue - June 7, 2005 at 09:52 AM          

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