§ Mr. Dixonasked the Minister of Transport (1) if it is his intention that tolls should in future be raised to meet the annual operating repayment of all loans on the ultimate repayment of all loans on the Tyne tunnel;
(2) if he will seek to make interest-free grants on the initial loans raised to meet construction costs of the Tyne tunnel, leaving tolls to cover operating costs only.
§ Mr. Kenneth ClarkeThe Government's policy is that tolls should continue to be charged on estuarial crossings which provide exceptional benefits to the users at rates sufficient over time to cover668W the servicing and ultimate repayment of the capital debt as well as operating and maintenance costs. This has been the policy of successive Governments.
Special financial assistance for the Tyne tunnel would not be justified.
§ Mr. Dixonasked the Minister of Transport, at current prices, what increase in the present level of tolls would be required to meet the annual revenue costs of the Tyne tunnel and ensure repayment of all loans by 1995 as originally required under section 43(2) of the Tyne Tunnel Act 1960.
§ Mr. Kenneth ClarkeThe Tyne tunnel is the responsibility of the Tyne and Wear county council. The council has made representations and published a notice on 9 June proposing a revision of tolls which my right hon. Friend is required to consider with any objections before deciding whether to make an order bringing the revised tolls into effect. Full information on how the council proposes to repay its outstanding debt is still awaited.
§ Mr. Dixonasked the Minister of Transport whether the estimated accumulated deficit of £19.4 million at 31 March 1981 on the Tyne tunnel will be financed and the outstanding loans repaid.
§ Mr. Kenneth ClarkeThe county council's recent application for an increase in certain toll charges is, I understand, intended—with future increases—to enable it to comply with its statutory obligations in respect of servicing and eventual repayment of the loans.
§ Mr. Dixonasked the Minister of Transport what was the cost per mile of the Tyne tunnel compared with motorway construction costs at the same time; what would be the level of toll required to break even if the costs in excess of normal motorway construction were not to be met from toll revenues; and what would be the level of tolls required to break even if only the costs in excess of normal motorway construction were met from toll revenues.
§ Mr. Kenneth ClarkeThe Tyne tunnel is the responsibility of the Tyne and Wear county council. The construction cost of the tunnel was £13.6 million, of 669W which £4 million was met by direct grants from the Exchequer and the local authorities. The construction costs of a dual two-lane motorway at that time ranged between £600,000 and £800,000 per mile. Hypothetical calculations about what toll levels might have applied in different circumstances and on different assumptions cannot readily be carried out and would not be very meaningful.
§ Mr. Dixonasked the Minister of Transport (1) if, in view of the fact that the Al has been rerouted through the Tyne tunnel, he will now seek to assume direct responsibility for the road;
(2) if he will seek to remove the tolls from the Tyne tunnel and arrange for its financing as part of the normal motorway trunk road network.
§ Mr. Kenneth ClarkeNo. There would be no advantage in a change of responsibility. The Tyne tunnel provides exceptional benefits which would have to be paid for by the users, whether it became a trunk road or remained the county council's responsibility.