Whitehall rejects calls to drop local RUC

17 October 2007

The Government has rejected calls to drop the requirement for local authorities to include road pricing in their Transport Innovation Fund bids.

Ministers confirmed it would ‘most likely’ fund packages which involved road-user charging (RUC), and that TIF proposals must include an element of hard demand management.

Responding to the House of Commons transport select committee’s report on the Draft Local Transport Bill and TIF, they also rejected ‘the suggestion that local authorities are being blackmailed and forced to introduce charging schemes against their will’. Charging schemes would not be supported ‘unless there is robust modelling to show [they] will be beneficial’.

It also said a national road-pricing proposal was not being developed ‘at this stage’, but the door was still open for such a scheme in the future.
The Government also rejected the committee’s recommendation for a minimum 12-week consultation before councils submit TIF bids. ‘It is for local authorities to judge how best to do this,’ it said.

Regarding the Draft Local Transport Bill, the Government agreed with the committee that the legislation should allow greater flexibility to ‘identify the ideal boundaries’ for Passenger Transport Authorities. ‘We agree that proposals need to reflect the different needs of areas, and are looking closely at the feasibility of allowing further flexibility.’

It also hinted it would introduce an independent, publicly-funded body to hear the complaints of bus users. ‘We recognise the arguments for a statutory body, and will be responding after the close of the consultation [Strengthening local delivery – modernising the traffic commissioner system] on 15 October.’

However, it was non-committal about giving PTAs powers to fine bus companies for breach of the partnership agreement, and for traffic commissioners to refuse licences, if operators undermine a quality partnership. It would decide following consultation, but stressed the importance of putting in place a procedure ‘which strikes the balance between the needs of incumbent and new operators, while also protecting the objectives of the quality partnership scheme’.

The Government accepted the need to manage effectively the transitional period before implementation of a quality contracts scheme, and is considering whether to extend the relevant power under the Transport Act 2000.

But it dismissed the committee’s call to limit the approval period of a quality contract to a maximum of six months.

‘Some schemes may be much more complex than others, so different time periods might be appropriate in different circumstances,’ it said.

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Whitehall rejects calls to drop local RUC

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