Plaid Cymru’s Chris Franks said he is “astonished” after discovering the public has to foot the bill for some repairs on the old Severn Bridge while a private firm reaps the profits from toll charges.
The Assembly Member for South Wales Central has heavily criticised the Concession Agreement signed by the UK Government in 1992 which made the state liable for latent or pre-existing defects on the M48 Crossing.
The terms of the contract were outlined in a letter to Mr Franks from Norman Baker MP, the Parliamentary Under Secretary of State at the Department of Transport, after a Freedom of Information request was submitted to the Highways Agency regarding tolls and maintenance.
In their response, the Highways Agency confirmed that Severn River Crossing Plc (SRC) – the company which oversees operations on both bridges – collected £225,733,000 from toll revenues in the three years from 2006. Since 2006, £15m has been spent treating corrosion on the main cables at the M48 Severn Crossing. The treatment is projected to cost £5.8m over the next five years.
As a result of the corrosion of the main suspension cables, described as “significant” by the Highways Agency, vehicles weighing over 7.5 tonnes are currently limited to one lane in each direction on the older bridge.
After Mr Franks raised concerns over the concession agreement in a letter to the Department of Transport, Mr Baker wrote back saying: “The main cable corrosion of the M48 Severn Bridge is a latent defect and therefore the responsibility for repair lies with the Secretary of State. Any costs associated with the investigation and repair of the cables will be borne by the Government.”
The concession agreement with the SRC is expected to come to an end in the first half of 2017.
Mr Franks said: “Plaid Cymru finds it astonishing that under the Concession Agreement agreed in 1992, the UK tax payer has to bear the cost for corrosion of cables on the old Severn Bridge because it is deemed to be a pre-existing condition.
“Under the terms of the contract the John Major-led UK Government signed with the SRC, the state is responsible for this remedial work.
“So while a private firm reaps the profits from the substantial toll charges to get into Wales, we are all left to pick up the tab for essential repairs associated with latent defects such as rust and any work to prevent it from building up.
“This is a perfect demonstration of Tory party’s ill-judged penchant for private finance whenever they hold the reins of power. In their fervour to avoid the initial outlay for the construction of the bridge, they appear to have made one of the worst business deals in recent history.
“At the time, Severn Crossing Plc must have thought the deal was too good to be true because while they enjoy guaranteed profits every year, the tax-payer has no choice but to foot the bill for latent defects on the M48 Bridge on top of paying its extortionate tolls.”
