Autoguide (Hansard, 21 July 1989)

§ Mr. Channon

I have decided that a licence to operate autoguide in the London area should be awarded to GEC, subject to successful negotiation on the terms of a licence and to the implementation of the Road Traffic (Driver Licensing and Information Systems) Bill.

Last January my Department invited the private sector to submit proposals for the installation and operation of a pilot autoguide scheme in the London area, which would be capable of being upgraded to a fully commercial system to which the public could subscribe.

We received proposals from GEC and from Aguide Services Limited, a joint venture company of which Plessey is the largest shareholder.

I have considered very carefully both sets of proposals, with advice from my financial consultants, Price Waterhouse.

In inviting proposals, I made clear my intention to select the firm or consortium which we believed would ensure that autoguide was developed to provide effective and efficient electronic route guidance to a wide market as soon as practicable without compromising road safety or 369W the environment. Both sets of proposals were of extremely high quality; but I believe that overall those from GEC better meet my stated objectives.

This decision does not in itself confer on GEC a licence to operate autoguide in London. A licence will be subject to negotiation by the Department and GEC, and to the implementation of the necessary legislation.

If a licence is awarded it would give GEC the right to install and operate a pilot autoguide system in a specified part of the London-M25 area. The pilot scheme would be closely monitored by the Department. Our primary concern would be to assess the likely effect of a large scale autoguide system on road safety and traffic management. We have previously undertaken that the results of our evaluation would be presented to Parliament.

If the results of our monitoring showed that a large scale system would not prejudice road safety or good traffic management, the operator would have a right to enter into negotiations for a second licence. This would allow him to provide a fully commercial autoguide system throughout the London/M25 area. Commercial operations could begin by the end of 1993.

I am willing to consider the issue of a licence for a pilot scheme for a further area. The ASL proposal included a pilot scheme covering an area outside London. My Department would be willing to discuss these proposals further with that group if they so wish, and will welcome proposals from other groups also. One of my criteria in assessing proposals would be the extent to which they would promote competition in the development of autoguide. It would be a licensing requirement that a second scheme should be compatible with that being operated in London. This would offer motorists the prospect of continuous route guidance over a large area of the country.

I believe that autoguide has an important role to play in easing congestion and so making the best use of our roads. It is clear that private industry shares that view.