Contribution
The right hon. Member had numerous opportunities to intervene, which were accommodated by the Under-Secretary of State for Transport, my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders).
As I was saying, the Bill does not grant development consent, alter planning requirements or remove scrutiny; it provides a financing framework for delivery. However, this Bill is not simply about one project. At its heart, it is about ensuring that the Government have another option available when that is the right solution for delivering nationally important infrastructure. This infrastructure very likely could not exist without this new mechanism or something like it.
It is worth remembering what this Bill is and is not. The Bill does not create the concept of privately financed toll roads. Parliament has already provided a route for private companies to finance, construct and operate toll roads through the concession arrangements under the New Roads and Street Works Act 1991. That route remains available today, and in the right circumstances it can work effectively. The M6 toll is an example of that approach. The principle that private capital can play a major role in road infrastructure is therefore not being invented by this Bill, but the Bill creates a different model.
For some roads, a concession arrangement may be entirely appropriate. Where users have clear alternatives, commercial incentives can play an important role in protecting users’ interests and encouraging good performance. Some infrastructure, however, performs a very different function. Some roads are nationally significant strategic assets that form critical trade corridors and support economic activity far beyond the communities through which they pass, and for many users there may be limited practical alternatives. In those circumstances, the Government believe there is a strong case for independent regulation sitting alongside private investment.
That is why the Bill places the Office of Rail and Road at the heart of that framework. The ORR will oversee performance, scrutinise costs, protect users’ interests, monitor financial resilience and hold operators to account. It will have substantial enforcement powers, including to intervene where performance is inadequate. The Bill also provides important safeguards to ensure continuity of service if a licence holder encounters serious financial difficulties. The purpose of the Bill is not to enable private charging where none has existed before; it is about expanding the Government’s toolkit to better address the range of possible circumstances.
Furthermore, the Bill will help modernise the way tolls are collected and enforced on existing toll roads. Some operators have already moved on free-flow tolling, but the legislative framework has not kept pace. In some cases, existing arrangements are not working as effectively as they should, while in others the necessary powers simply do not exist to enable such a transition. It is right that the law keeps pace with advances in technology, and this Bill provides a clear route for operators to move to a modern tolling system while ensuring that enforcement remains effective.
That brings me to the predominant theme in this debate. Today we have heard just how important local services are to communities across our nation. This Government back local people to make the right decisions for their communities, and we are striving forward with ambitious plans for devolution that will drive growth in every postcode. Fundamentally, this Bill is designed so that users make a contribution towards the costs of major infrastructure from which they derive substantial benefits. Toll revenue should meet the efficient costs of constructing, operating and maintaining the infrastructure for which users are being charged. It would not be right to expand this proposition to a form of centrally imposed local taxation.
I thank my hon. Friends the Members for Thurrock (Jen Craft) and for Gravesham (Dr Sullivan). The Prime Minister has personally committed the assistance of No. 10 North to the campaign of my hon. Friend the Member for Gravesham to find a suitable way to bring back the Tilbury-Gravesend ferry, and we remain open to working with local leaders on similar issues.
The clear theme in this debate has been whether this framework will provide regulation strong enough to protect users and avoid the failings seen in other sectors, including the water sector. We have learned those lessons and the Bill equips the ORR to be a strong and effective regulator from the outset. The ORR already has substantial experience of overseeing road and rail. Its new chief executive, Paul Smith, brings extensive regulatory experience from the UK’s aviation, energy and payment sectors, as well as from senior regulatory roles in Australia. Under this framework, the ORR will monitor licence holders’ financial resilience and long-term performance closely, and the regime will incentivise the right behaviour. Where an operator falls short, there will be meaningful consequences. Ultimately, the ORR will have the ability to suspend tolling while issues are resolved. The Bill also provides a clear backstop for this nationally important infrastructure where necessary.