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Scottish Grand Committee adjournment debate on the Skye bridge

Scottish Grand Committee adjournment debate on the Skye bridge. (Committee sitting at Westminster). Agreed to on question.

Lead member

Charles Kennedy

Answering member

Henry McLeish

Department

Scotland Office

Type

Adjournment debates

Committee

Scottish Grand Committee

Date

21 July 1998

Reference

SGC c39-48

House

House of Commons

Scottish Office

To ask the Secretary of State for Scotland, what account he took of Schedule 1 of the Skye Bridge Crossing Toll Order in allowing the sale of books of 20 discounted tickets for the Skye Toll Bridge. - Inc ref to 297 c288-90W, 4 July 1997.

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Office

Type

Written questions

Status

Answered

Date

23 June 1998

Reference

314 c482W; 46717

House

House of Commons

Scottish Office

To ask the Secretary of State for Scotland, what is the status of Crown Production 16 in respect of the right to collect the Skye bridge tolls on the part of the second concessionaire, Miller Civil Engineering. - (Holding answer 10 June 1998).

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Office

Type

Written questions

Status

Answered

Tabled on

19 May 1998

For answer on

16 June 1998

Answered on

16 June 1998

Mr. Charles Kennedy: To ask the Secretary of State for Scotland what is the status of Crown Production 16 in respect of the right to collect the Skye bridge tolls on the part of the second concessionaire, Miller Civil Engineering; and if he will make a statement. [43194] Mr. Dewar: [holding answer 10 June 1998]: The hon. Member's description of Miller Civil Engineering Ltd. as the second concessionaire is incorrect in terms of the relevant statutory provisions in the New Roads and Street Works Act 1991 and the contractual arrangements relating to the procurement of the bridge. There is only one concessionaire, namely Skye Bridge Ltd., formerly known as Skye Bridge Tolls Ltd. The then Secretary of State assigned to Skye Bridge Tolls Ltd. his right to charge and collect tolls on Skye Bridge in accordance with section 28 of the New Roads and Street Works Act 1991 and the relevant toll order. Miller Civil Engineering Ltd. are not a concessionaire since they have not been assigned the Secretary of State's rights to charge and collect tolls. I understand Crown Production 16 to be a document produced in the context of criminal proceedings in Dingwall Sheriff Court. The production is part of the Memorandum of Agreement made among the then Secretary of State for Scotland, Skye Bridge Tolls Ltd., The Miller Group Ltd., Miller Civil Engineering Ltd., Dyckerhoff & Widmann AG and Miller-Dywidag Joint Venture in relation to documents identified in Appendix 1 to that Memorandum. The documents include the Operation and Maintenance Agreement, in terms of which Skye Bridge Tolls Ltd., the concessionaire, entered into arrangements with Miller-Dywidag Joint Venture relating to the operation and maintenance of the bridge by Miller & Dywidag in joint venture including the collection of tolls on behalf of Skye Bridge Tolls Ltd. The Memorandum represents the then Secretary of State's written consent to those arrangements. This is set out in the Answers which I have lodged as an interested party in response to the Petition by Robbie the Pict seeking to interdict Miller Civil Engineering Ltd. from collecting tolls from him in respect of his use of Skye Bridge. That matter is currently before the Court of Session.

Date

16 June 1998

Reference

314 c136W; 43194

House

House of Commons

Scottish Office

To ask the Secretary of State for Scotland, pursuant to his Answer of 27th January, Official Report, 305 c179W, if he will comment further in respect of the Skye Bridge, with special reference to (a) the Bank of America at present holding title to the shares, (b) the subsequent ownership...

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Office

Type

Written questions

Status

Answered

Date

2 March 1998

Reference

31929; 307 c451-2W

House

House of Commons

Scottish Office

Statement on when his Department was informed of the acquisition of the Skye Bridge Company by the Bank of America; from what date such acquisition became effective; what plans he has, arising therefrom, to reconsider the basis upon which his Department supplies information in response to enquiries from the National...

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Office

Type

Written questions

Status

Answered

Tabled on

20 January 1998

For answer on

27 January 1998

Answered on

27 January 1998

Mr. Charles Kennedy: To ask the Secretary of State for Scotland when his Department was informed of the acquisition of the Skye Bridge Company by the Bank of America; from what date such acquisition became effective; what plans he has, arising therefrom, to reconsider the basis upon which his Department supplies information in response to enquiries from the National Audit Office; and if he will make a statement. [24835] Mr. Dewar: Skye Bridge Ltd. has not been acquired by the Bank of America. The publicly available records at Companies House, Edinburgh, show that, since 23 January 1992, 997 £1 ordinary shares of Skye Bridge Ltd. (formerly known as Skye Bridge Tolls Ltd.) have been registered in the name of Bank of America International Ltd. and a further three in the name of BankAmerica Nominees Ltd. These transfers were in accordance with the funding arrangements agreed at the outset by the companies involved in procuring the Skye Bridge. The arrangements require Miller Civil Engineering Ltd., which held 405 £1 ordinary shares in Skye Bridge Ltd., Dywidag Systems International Ltd. (formerly known as Dywidag Systems (UK) Ltd.), which held 405 £1 ordinary shares, and BankAmerica International Financial Corporation, which held 190 £1 ordinary shares, to transfer their shares in security to a Trustee (or its designated nominee) acting on behalf of the secured creditors of Skye Bridge Ltd. The Trustee is the Bank of America International Ltd. and its designated nominee is BankAmerica Nominees Ltd., to whom 997 and three ordinary shares were transferred respectively. Such a grant of security required, as a matter of Scots law, that the title to the shares be transferred to the Trustee, subject to the terms of the security arrangement. During the currency of the arrangement, the companies granting the security retain the power in respect of their shares to direct the Trustee regarding the exercise of certain important rights under the shares, including voting rights. Once Skye Bridge Ltd. has fulfilled its obligations to the secured creditors, the Trustee is obliged to transfer back the shareholdings. The then Secretary of State was aware of, but not party to, all aspects of the funding arrangements when the Concession Agreement was signed on 16 December 1991. Under the terms of the Concession Agreement, the agreed funding arrangements may not subsequently be amended without the approval of the Secretary of State. The granting of the security did not constitute an amendment and, therefore, did not require the Secretary of State's approval. Under the National Audit Act 1983, the Comptroller and Auditor General has a right of access to documents he may reasonably require for carrying out any examination into the economy, efficiency and effectiveness with which any department has used its resources in discharging its functions, and is entitled to require such information and explanation as are reasonably necessary. The information on the shareholding arrangement described above was available to the National Audit Office in the course of the Skye Bridge examination. The Department will continue to provide access in accordance with the requirements of the 1983 Act.

Legislation

National Audit Act 1983

Date

27 January 1998

Reference

24835; 305 c179W

House

House of Commons

Scottish Office

To ask the Secretary of State for Scotland, if he will place a copy of the Confirmed Assignation Statement in respect of the Skye Bridge in the Library; and if he will comment on the Skye Bridge Company and the collection of tolls. - Will write.

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Office

Type

Written questions

Status

Answered

Date

11 December 1997

Reference

302 c675-6W; 19920

House

House of Commons

Scottish Office

1st supplementary on same.

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Office

Oral questions - 1st Supplementary

Status

Answered

Date

4 November 1997

Reference

300 c103-4

House

House of Commons

Scottish Office

To ask the Secretary of State for Scotland, if he will comment on progress in reducing the Skye Bridge tolls.

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Office

Oral questions - Lead

Status

Answered

Date

4 November 1997

Reference

12044; 300 c103-4

House

House of Commons

Public petition from SKAT (Skye and Kyle Against Tolls) asking for the abolition of the tolls on Skye bridge

Public petition from SKAT (Skye and Kyle Against Tolls) asking for the abolition of the tolls on Skye bridge. (Circulated with the Vote for 28 October 1997)

Lead member

Charles Kennedy

Type

Paper petitions

Date

31 July 1997

Reference

299 c553

House

House of Commons

Scottish Office

If he will suspend Skye Bridge toll collection pending the hearing of the appeal; and what powers he has to pay interim recompense to Skye Bridge Limited pending the outcome of appeal.

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Office

Type

Written questions

Status

Answered

Date

17 July 1997

Reference

9155; 298 c269W

House

House of Commons

Scottish Office

If he will institute an immediate review by a senior advocate of the Skye Bridge toll order. - Includes ref to 297 c288-90W

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Office

Type

Written questions

Status

Answered

Date

17 July 1997

Reference

9153; 298 c269W

House

House of Commons

Scottish Office

If he will review the costs to public funds of buying out the Skye Bridge contract.

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Office

Type

Written questions

Status

Answered

Date

17 July 1997

Reference

9152; 298 c269W

House

House of Commons

Scottish Office;Scottish Grand Committee

1st supplementary on dealing with cases arising out of toll disobedience.

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Grand Committee

Oral questions - 1st Supplementary

Status

Answered

Date

8 July 1997

Reference

SGC c15-6

House

House of Commons

Scottish Office;Scottish Grand Committee

To comment on his Departments policy on the Skye bridge tolls. - Ref to 297 c288-90W,

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Grand Committee

Oral questions - Lead

Status

Answered

Date

8 July 1997

Reference

SGC c15-6; 5781

House

House of Commons

Scottish Office

Statement on his plans in respect of the Skye Bridge tolls, following his recent meeting with the Highland Council. - (Holding answer 3 July 1997).

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Office

Type

Written questions

Status

Answered

For answer on

4 July 1997

Answered on

4 July 1997

Mr. Charles Kennedy: To ask the Secretary of State for Scotland if he will make a statement on his plans in respect of the Skye Bridge tolls, following his recent meeting with the Highland Council. [6497] Mr. Dewar: [holding answer 3 July 1997]: We have looked carefully at the full range of options for making the toll regime for the Skye Bridge fairer. In doing so we have had to take account of the fact that we inherited the contractual commitments which the previous Government had entered into with Skye Bridge Limited. Those commitments guarantee Skye Bridge Limited a specific financial return on the bridge. Therefore any action by the Government in relation to toll levels which leads to a reduction in the revenues which would flow to the company renders the Government liable to compensate the company for that reduction in revenue. This makes affordability a key issue. Simply buying out the contract is estimated to cost around £30 million. We cannot justify that in the face of the many pressing needs for future expenditure within my public expenditure programme. Spending on education and health, for example, has a higher priority in deciding how to deploy any public expenditure which we can free up to reordering priorities or improving the efficiency of programmes. The idea of removing tolls completely through 100 per cent. shadow tolls is no less expensive than buying out the contract. Nor in public expenditure terms does it have the effect of spreading the cost over a number of years, as people have tended to assume. The full cost of the project would be a public expenditure charge immediately because of the absence of the transfer of risk to the private sector, which is what justifies the phased public expenditure cost for DBFO roads contracts entered into before construction has begun. We looked at the option of partial shadow tolling. However, we concluded that this was not the fairest means of alleviating the impact of tolls. We consider that the impact of the tolls is most severe on local people and others who use the bridge most frequently. We can halve the car and motorcycle tolls for frequent users for almost the same cost as would be involved in reducing tolls across the board by only 10 per cent., through partial shadow tolling. We believe that halving the discounted tolls for cars and motorcycles paid by frequent users would be a very significant benefit. Frequent users make 40 per cent. of all car crossings at present and most of them will be inhabitants of Skye or the surrounding area. This change will produce a toll of £1.25 compared to the current discounted ticket cost of £2.51 and the current cost to casual users of £4.40 in the low season and £5.40 in the high season. At the suggestion of Highland Council, I propose that the number of crossings necessary for car and motorcycle owners to qualify for the discounted toll should be increased from 10 to 20. Highland Council put to me the case for some reduction in tolls for commercial vehicles. I looked very carefully at several options which they put to me and concluded that, since over 70 per cent. of commercial vehicles take advantage of discounted tolls at present, I should focus any reduction on these tolls as I have done for car users. A reduction of 25 per cent. in discounted tolls for large heavy goods vehicles will reduce the cost of each crossing by £6.32, from £25.27 to £18.95, which should produce very substantial cumulative benefits to the businesses concerned. I hope this will benefit the local economy either through the effect on consumer prices or by helping companies retain or increase employment. Highland Council also made a case for a reduction in the toll for service buses, and I have decided to reduce the discounted toll for these by 25 per cent. from £15.27 to £11.45. This should enable bus operators to reduce fares and will, I hope, encourage the use of public transport. I wish to assist the health of the local economy. The changes in tolls which I propose to make are likely to cost me a very substantial amount of money over the life of the contract. That will be matched by savings to bridge users, who will be free to spend that money in other ways. Since the benefits will be concentrated on local people, as a result of the approach which I have chosen, the extra spending power is more likely to flow to the local economy. My officials are now in discussion with Skye Bridge Ltd. to agree the precise details and the arrangements to ensure that the effect of these changes on the Company's revenue is neutral. The timing of these changes will depend partly on the need to promote a variation to the Toll Order, which will have to be approved by Parliament, and on the need to complete the discussions with the Company. They will, however, be implemented as early as practicable.

Date

4 July 1997

Reference

6497; 297 c288-90W

House

House of Commons

Scottish Office

When he expects the Lord Advocate to reply to the requests from the honourable Member for Ross, Skye and Inverness West for a meeting to discuss the Skye Bridge tolls non-payment campaign.

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Office

Type

Written questions

Status

Answered

Date

3 July 1997

Reference

6496; 297 c274-5W

House

House of Commons

Scottish Office

1st supplementary on same.

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Office

Oral questions - 1st Supplementary

Status

Answered

Date

17 June 1997

Reference

296 c103

House

House of Commons

Scottish Office

If he will comment on his discussions with the Highland Council in respect of the Skye Bridge tolls.

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Office

Oral questions - Lead

Status

Answered

Date

17 June 1997

Reference

296 c103; 2334

House

House of Commons

Scottish Office

If he has issued a report in respect of the Skye toll bridge in accordance with Clause 41 of the New Roads and Street Works Act 1991. - Reports were laid 16 July 1992, 20 July 1993 and 28 June 1996.

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Office

Type

Written questions

Status

Answered

Date

11 February 1997

Reference

14627; 290 c132W

House

House of Commons

Scottish Office

If he will publish the total recorded traffic flow figures over the Skye Bridge during those toll-free days during the recent Christmas and New Year holidays; if he will provide typical average figures for non-holiday mid-week days during December and January. - Figs given.

Asked by

Charles Kennedy (Liberal Democrat)

Answering body

Scottish Office

Type

Written questions

Status

Answered

Date

23 January 1997

Reference

12393; 288 c752W;288 c751-2W

House

House of Commons

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