§ Ms. WalleyTo ask the Secretary of State for Transport (1) what research he has commissioned into(a) the economic and (b) the employment impact of new road building;
(2) what assessment he has made of the implications of (a) road construction and (b) road maintenance for job creation;
(3) what assessment he has made of the implications of road building for regional policy;
(4) what assessment he has made of the implications of the road programme on employment relocation, job destruction and job creation; and if he will make a statement.
§ Mr. Kenneth Carlisle[holding answer 13 November 1992]: The programme of road construction is aimed at meeting the needs of industry and other road users through the provision of a modern strategic road network. This reflects the Government's commitment to a road infrastructure which strengthens the competitive performance of the economy. This was reiterated by the statement of my right hon. Friend the Secretary of State to the House yesterday.
The economic appraisal of road schemes measures the benefit they generate for the economy. There is a continuing process of research carried out by the Department which supports this analysis.
Decisions on the programme take account of local development objectives such as, for example, inner-city regeneration and the development of docklands.
The employment implications of our expenditure on new construction and road maintenance is complex because so many industries are involved in the process. However, estimates confirmed by the CBI and other industry groups identify around 3,100 jobs created by every £100 million spent on new construction. We estimate that road maintenance is at least as labour intensive.
§ Ms. WalleyTo ask the Secretary of State for Transport if he will reconsider the financial criteria which apply to investment in transport policy and road construction; and if he will make a statement.
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§ Mr. Kenneth Carlisle[holding answer 13 November 1992]: The Department of Transport's booklet, "The Role of Investment Appraisal in Road and Rail Transport", describes the technical procedures, and their background, at present used by the Department for appraising proposed investments in roads and rail transport. I would also refer the hon. Member to the autumn statement by my right hon. Friend the Chancellor of the Exchequer.
§ Ms. WalleyTo ask the Secretary of State for Transport if he will set out the existing rules for calculating the rate of return on road investment.
§ Mr. Kenneth Carlisle[holding answer 13 November 1992]: Trunk road schemes are appraised using standard computer programs, namely COBA 9, URECA, and QUADRO 2. They have accompanying manuals which explain the techniques used. The Department's booklet, "Getting the Best Roads for our Money: The COBA Method of Appraisal", summarises COBA, which is the most commonly used program.