WHAT ABOUT A TOLL ROAD?
theory it could leave around £500m needed to fund the project over its construction period.
Yes, it would also have to fund the interest and capital repayments on a £800m facility over 30 years, but £500m over three is more than manageable from a budget of £18bn.
Transport Secretary Ken Skates has more than £500m set aside for spending on capital alone each year in his portfolio budget.
The Welsh Government is currently able to borrow up to £125m per year within an overall cap of £500m for capital expenditure.
As part of the fiscal framework agreed with the UK Government, from 2019-20 its overall capital borrowing limit will increase to £1bn with the annual limit increasing to £150m. As well as the interest the Welsh Government would have to repay the capital too. AS proposed by Labour leader candidate Eluned Morgan, using technology that doesn’t result in a physical toll, motorists could be charged a relatively small amount for using the new stretch of motorway.
How much to charge and how it would be operated would be a matter for further investigation, but if not too onerous on cost, motorists could be happy to pay if specifically used to help fund and maintain a new section of the M4.
While it is too late now, perhaps the UK Government should have kept some toll charges – but say reduced in half – on the Severn bridges.
It could then have drawn down funding specifically to support the cost of the relief road securitised against toll income say over a time limited period of 10 to 15 years.