Speech at the ASECAP Steering Committee

Road pricing seems to have become something of a national obsession in the UK recently.

Based on the amazing amount of press coverage there’s been on the topic, I’m sure some people must be getting a little tired of the subject... and especially a lot of the misinformation surrounding it.

So you’ll be relieved to hear that I haven’t come to talk about UK road pricing today.

However, you will also know that the introduction of the European Directive on electronic tolling services means that we still have to face up to some serious issues on charging.

And regardless of what the UK decides to do about road pricing in the future, the British government will still have to implement this Directive.

That means that it will impact the M6 Toll operated by Midland Expressway, the Dartford Crossing and other tolled routes in the UK.

And that is why we are determined to make our voice heard in the debate.

The ideal toll system for Europe is really quite straightforward to imagine in theory.

It would involve a system where users can register to pay and take any route from Sicily to Scotland or Vilnius to Vigo - and will know that the correct amount will be deducted from their accounts at the end of their journeys.

Equally, operators would have the flexibility they need to apply different tolling regimes in each country the driver travels through…. And that would come with the appropriate guarantees that they would get paid in full and on time.

The principle is straightforward.

With modern technology, it shouldn’t be beyond our collective imagination to work toward something that comes close to that ideal.

But as we all know, the practice is a lot more complex.

That means looking very carefully at three key issues:

• security
• flexibility
• and getting free flow of traffic across a free trade Europe.

Many of the issues related to these key points are raised by the European Electronic Tolling Service Directive – EETS. That makes it vital for us to get it right.

I know very well from discussions I’ve had with the industry and with my colleagues within the Department for Transport that toll operators have some very legitimate concerns about EETS.

We share many of those concerns.

From a desk in Brussels, it might be very tempting to try and design a universal tolling system that could apply to every vehicle on the road in Europe.

But I believe that we should try to avoid coming up with an overly prescriptive system for toll technologies.

For one thing, there is a danger that we would have to squeeze the existing tolling regimes into a one-size-fits-all system.

Secondly, there is a real danger that we would lose the flexibility to apply tolling regimes that are most appropriate to the very diverse transport scenarios that exist across Europe.

And finally, I believe there is also a danger of losing the ability to introduce innovative new technologies if we start off with an overly prescriptive system.

Diverse tolling regimes already operate across Member States for different vehicle classes.

I know that the Netherlands is looking at innovative new systems to alleviate congestion.

And of course, we are also in the midst of a debate about road pricing here in the UK.

So flexibility is key.

I would stress that we are still a long way away from making any firm decision on road pricing in the UK.

But although the British public may still be sceptical about the concept, doing nothing is not an option.

Despite a sustained level of record investment in transport in the UK, congestion is forecast to get much worse. This has real costs for both the economy and environment.

So the Government is working with local authorities on plans to develop pilot schemes that will help assess how road pricing might work in practice.

It will only be on the evidence of these schemes that we make any firm decisions on road pricing for the UK.

The Government is not rushing into this. Even if we did gain popular support, any national scheme could still be a decade away.

But if the day should come that we decide to go ahead with road pricing, then the technology will have to comply with EETS in exactly the same way as the systems we already have at Dartford Crossing or the M6 Toll operated by Midland Expressway.

That’s why it is vital that we have a system that has the flexibility to adapt to different toll regimes that may have different aims.

Sometimes the toll could be to pay for a particular infrastructure project. And sometimes it could be to target congestion at specific times of the day.

The same flexibility is needed of any of the tolling systems already in operation in France, Germany, Austria or elsewhere in Europe.

That is why the UK is pressing for a flexible, market-driven EETS that supports output-based specifications.

If we end up with highly detailed, functional specifications, we will lose the ability to design the optimum toll to meet specific challenges.

That is why the UK government is lobbying alongside other member states such as France to ensure we get the best system possible.

That is why we are collaborating closely with other member states represented in the Stockholm Group to develop workable solutions.

And that is why we are working with ASECAP to find the most practical, effective way to provide interoperability across Europe.

ASECAP members operate a toll network of more than 24,000 km in 17 countries.

So I don’t need to tell you about the advantages of a flexible, transparent toll charging system.

Even in the UK, it is easy to imagine the benefits of interoperability.

A lorry arriving from Europe and taking the Dartford Crossing may well find the M6 Toll more attractive if the journey can be paid for in a single transaction, or through a single account.

We always have to keep in mind the driver here – your customers. They want flexibility, convenience and transparency as much as you.

Given the choice, they would prefer barrier-less tolls.

They want to avoid making multiple stops to sign up for one toll system in Switzerland… another in Germany… and fumbling for the right change in the UK.

Drivers want to determine the best route available. They want to do it at the lowest cost. And they want to optimise the timing of their journey to avoid congestion and charges wherever possible.

Technology can help achieve all these goals.

Free-flow tolling that works effectively for both operators and vehicle users is what we are all aiming for.

Since the Directive was agreed, Governments, toll operators, the European Commission and others throughout Europe have been grappling with these issues.

The CESARE project - led jointly by ASECAP and the Stockholm Group, and supported by the European Commission - was set up to tackle the commercial and contractual aspects of this challenge.

I’m happy to say that the UK was able to play a leading part in this project and we have already witnessed a great deal of cooperation in identifying the issues and opportunities here.

We have been able to define some of the challenges that EETS presents in great detail.

We have also moved a long way toward showing how we could structure contractual and commercial relationships within a Europe-wide, free-flow toll regime.

As a result, I think the Commission is beginning to understand that this is one of the primary challenges facing EETS.

We have been able to give our opinions on EETS directly to the Commission, as well as working through the Stockholm Group and ASECAP.

And on the basis of what we’ve seen so far, it does look as though the message is getting through… the system can only work if the right guarantees are in place to ensure that operators get paid what they are due… on time and in full.

That’s why enforcement is such a serious issue.

There will always be those that try to get round any charge. Operators need to be confident that fees and fines will be collected and paid.

This is especially important for a Europe-wide system where the operator may not have a direct relationship with the user.

That means that we need to be crystal clear on the commercial relationships between operators and third party collection agencies.

I fully appreciate that operators simply won’t have confidence in the system if these issues aren’t resolved.

But I also believe that if we work together and flag up these legitimate concerns, then we can get consensus on the business models that will make this work.

That is why the Department for Transport intends to keep playing a major role on the next stage of the CESARE project - CESARE IV.

If the Commission, the Stockholm Group and ASECAP work closely together, I am confident that we can develop a sensible, secure framework for interoperability across Europe.

To achieve this though, we need to address the key concerns I outlined at the start.

Any system we agree on has to be secure… it has to be flexible… and it has to allow for the free flow of traffic across Europe.

Any system that goes into highly detailed, functional specifications will fall short of our ideal.

That is why it is so important that we get a flexible, market-led EETS that operates on output-based specifications.

I hope that we can all work together to make this happen.

And if we do, I am sure that we can get close to the ideal that we are all aiming for.

Delivered: 19 March 2007

(This speech represented existing departmental policy but the words may not have been the same as those used by the Minister.)