(4.10) CASE STUDY : - TRUNK ROAD NETWORK
4.10.1 Current Situation
4.10.2 Analysis and Evaluation
4.10.3 Proposed Solution
4.10.4 Enhancing the Trunk Road Network
MAP 4.3 Trunk Road
Network of England
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(4.10.1) The Current Situation
These are the Motorways and other principal roads with the main purpose of providing long distance routes between the main urban, Industrial, seaports, airports, tourist regions and other major generators of long distance traffic. The Highways Agency manages the Trunk Road Network on behalf of the Department of Environment, Transport and Regions.
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(4.10.2) Analysis and Evaluation
Parts of the Trunk Road Network are under strain, often full to capacity. Therefore there are demands on the Government to increase capacity, widen or even build new roads. On the other hand professional research 1 shows that increasing capacity generates more traffic that increases further pressures on other parts of the road network. To counterbalance the road building pressure groups there are also the environmental lobby groups who campaign vigorously to prevent any more road building.
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(4.10.3) PROPOSED SOLUTION
A decision will need to be taken whether to include all Trunk Roads in the United Kingdom or to separate into the Trunk Roads of the Constituent Countries.
All the United Kingdom (or constituent country) citizens will be invited to vote in a referendum to formalise their ownership of the national Trunk Road Network. If they vote yes the Trunk Road Network will become a Public Limited Company, the assets and liabilities (outstanding debts incurred by the state as allocated to these roads) will become the responsibility of the shareholders.
Trunk Roads PLC will pay all its costs both direct and external (see 4.5 Managing Road Companies) out of Road Charging income; any surplus could be invested for example on improving the Trunk Road Network or other initiatives – also to provide a dividend for shareholders as decided at the Annual General Shareholders Meeting.
Every citizen of the United Kingdom (or the constituent countries) will be given an equal shareholding (similar to the way building society shares were distributed to their members).
This will: -
Ø Set up an opening balance sheet showing all assets and liabilities.
Ø Set up a constitution for electing a board of directors and officers who will be responsible for managing the national Trunk Road Network, complying with legislation and the wishes of the shareholders.
Ø Set up a financial system to allocate and pay all the costs imposed on the national Trunk Road Network both direct and externalities, e.g. set up noise monitors to detect noise pollution, then pay those affected appropriate compensation.
Ø Use Global Positioning Technology to charge for road use see 4.14 Technology for Road Pricing Update
Ø Set up contracts for the maintenance of the roads with standards set for safety, etc, with penalty clauses for failing to meet agreed standards set by Trunk Roads PLC or legal requirements.
Ø Obtain legislation for law enforcement to recover all of its costs from those convicted of breaking the law. Taxpayers, shareholders and law abiding motorists should not be expected to pay for a law enforcement system that would not be required if people did not break the law.
Ø Buy-in police services, e.g. from established police forces or British Transport Police, to meet agreed policing standards.
Ø Change speed limits as requested by shareholders. Install comprehensive coverage of speed enforcement cameras.
Ø The AGM will decide how to spend profits, how much to distribute as dividend for shareholders? How much to spend on road improvements, or whatever the shareholders decide?
(4.10.4) Enhancing the Trunk Road Network
There will undoubtedly continue to be demands from some people (now shareholders) and pressure groups for more road building, e.g. increasing the capacity of the M25. However, road building will now have to be economically viable. The Trunk Road PLC will need to finance the building, including the public enquiry costs, out of projected revenue. The financial analysis may well show that increasing the price of using the M25 to finance the road building may dampen demand, the road building being unnecessary.
Whatever the outcome, an economic price for road use will emerge. If demand
continues at higher price the road can be built, if demand suppressed the road
will not be built. Accusations of ‘Government Fleecing the Motorist’ will not
exist, as United Kingdom citizens will be the shareholders receiving the dividends
from profits. The United Kingdom citizen shareholders responsible for electing
directors deciding policy will vote for self interest of maintaining financial
sustainability, to balance pricing against costs, servicing liabilities and
investment programme.
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NOTES
1) Standing Advisory
Committee on Trunk Road Assessment (SACTRA), “Trunk Roads and the
Generation of Traffic”, HMSO, London, 1994
Cairnes, Hass-Klau and Goodman, "Traffic Impact of Highway Capacity Reduction: Assessment of the Evidence”, Landor Publishing, 1998