Plaid Cymru’s Leanne Wood and Chris Franks have condemned the terms of the Old Severn Bridge contract after discovering that nearly £18 million has come out of the public purse for repairs on the privately-run route.
The Department of Transport revealed in a letter to Mr Frank’s office that tax-payers have footed the bill for treating corrosion of the main cable and repairs to the cantilever edges of the M48 Bridge.
Since 2005/06, the cost of treating these two issues has run to £17,871,666. By the next May, the bill is likely to rise to well over £21 million due to projected costs of £3.8 million for this financial year.
Under the Concession Agreement signed by the UK Government with Severn River Crossing Plc (SRC) in 1992, the state was held liable for latent or pre-existing defects on the M48 Crossing.
Since the corrosion of the main cable and the damaged cantilever edges are deemed to be latent defects, the tax-payer must foot the bill for any subsequent maintenance work.
In previous correspondence, the Highways Agency revealed that SRC collected £225,733,000 in toll revenues from both bridges in the three years from 2006.
The deal has been heavily criticised by Chris Franks and Leanne Wood, who both represent the South Wales Central region for Plaid Cymru.
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.
“What adds insult to injury is that motorists have been forced to endure year-on-year rises in the tolls to cross both bridges into Wales. It is inconceivable that the extortionate £5.50 fee for a car, £10.90 for a van or £16.40 for a truck, does not have an affect on the economy of South Wales and beyond.”
Ms Wood added: “While a private firm reaps the profits from the substantial toll charges to get into Wales, the public is left to pick up the tab for essential repairs associated with pre-existing defects.
“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 a very bad business deal.
“Severn River Crossing Plc must have rushed to sign the deal because it enabled them to enjoy guaranteed profits every year, while dumping the liability for latent defects on the tax-payer. The reverberations of this contract clause are being felt some 18 years later.
“I am concerned that with the Tories now holding the levers of power at Westminster, and their coalition partners the Liberal Democrats seemingly too afraid to rock the boat, more questionable private finance deals will be struck in the coming years.”
