HC Deb 11 July 2000 vol 353 c693
9. Shona McIsaac (Cleethorpes)

If he will make a statement on tolls for the Humber bridge [128408]

The Parliamentary Under-Secretary of State for the Environment, Transport and the Regions (Mr. Keith Hill)

The Humber bridge board, which owns the bridge, is responsible for its operation and its finances, and for proposing any changes in the tolls to be charged. The Secretary of State has responsibility for determining applications to revise tolls solely according to certain statutory criteria.

Shona McIsaac

While I welcome some of the action that the Government have taken to assist the board to restructure the debt on the bridge, does my hon. Friend agree that Europe's plans to impose value added tax on tolls will have a devastating effect on the communities north and south of the Humber? If that is to happen, I suggest that he does one of two things: restructure the debt again so that there is no increase in the tolls, or wipe it out completely.

Mr. Hill

My hon. Friend takes a keen interest in these matters on behalf of her constituents. She has acknowledged that the Government have made considerable progress in finding a solution to the debt problem of the Humber bridge.

On VAT on tolls, I must enter the usual caveat that that is a matter for the Chancellor and the Paymaster General. Having said that, the position, as my hon. Friend said, is that we await the European Court's judgment. As she knows, the United Kingdom has staunchly opposed the Commission's view that tolls involve a business activity and should be taxable at the standard rate. We take the view that tolling is an exempt activity of a public body in pursuit of a statutory obligation. I can make no further commitment with regard to restructuring the debt. Naturally, we hope that our view will prevail in Europe. If the tolls of all tolled undertakings had to rise to take account of VAT, it would not be right to mitigate the effect of VAT by subsidy for the Humber bridge alone.

Miss Anne McIntosh (Vale of York)

Perhaps we can revisit this matter when the European Court has given its ruling.

Does the Minister agree that the proposed £1 toll on the Millennium bridge is too high? What would be the impact of VAT on that toll?

Madam Speaker

Order. We are on the Humber bridge at the moment and I know where that is—it is nowhere near that other bridge.