§ Mr. Malcolm BruceTo ask the Secretary of State for Scotland if he will estimate the annual cost of abolishing the tolls on the Skye Bridge and paying a shadow toll to Skye Bridge Ltd. for the remaining years of the contract; and if he will make a statement. [69246]
§ Mr. Macdonald[holding answer 4 February 1999]The terms of the contract with the concessionaire are that any changes to the concession agreement must have the consent of the concessionaire. Accordingly, it is not possible to estimate the final cost of shadow tolling. However, as my right hon. Friend said in his written answer of 4 July 1997,Official Report, columns 288–90, the idea of removing tolls completely through 100 per cent. shadow tolls is not less expensive than buying out the contract nor in public expenditure terms does it have the effect of spreading the cost over a number of years, as people have tended to assume. The full cost of the project would be a public expenditure charge immediately because of the absence of the transfer of risk to the private sector, which is what justifies the phased public expenditure cost for DBFO roads contracts entered into before construction has begun. The cost of buying out the contract is estimated to be at least £25m, but the final figure would depend upon the outcome of negotiations with the concessionaire. Hence, full shadow tolling is not considered an affordable option given the other competing pressures upon the roads budget.
From 1 July 1999, this will be a matter for the Scottish Parliament.