An interview with Norman Baker MP, Shadow Transport Spokesperson for the Liberal Democrats
February 2010
“Tax bad things like pollution”
Norman Baker MP, Lib Dem Shadow Transport Secretary, likes to pick his battles. He knows that the Chilcot Inquiry into the Iraq War, will not rock the establishment as much as he thinks it should. Instead Baker chooses ‘Road User Charging’ as the battle he wants to win.
The likelihood of a hung parliament - meaning there is no overall party political majority - is being seriously touted in the corridors of Westminster and Whitehall. It could mean, that the Liberal Democrats hold the balance of power for the first time through the formation of a coalition government.
Although Labour is currently behind in the polls, the Conservatives still need to climb an electoral mountain to obtain an extra 117 seats for an overall one seat majority. Gordon Brown and David Cameron have already begun courting Lib Dem leader Nick Clegg and it has been leaked that The Queen has been briefed on the constitutional implications of a hung parliament.
It is in a coalition government that Baker will seize his moment. When asked directly, what his ‘bargaining chips’ are, given a power sharing deal, Baker sticks to his leader’s line, “Our (Lib Dem) aim is to focus on maximising our share of the votes, not to side with the Tories nor Labour”, but he concedes “there will be a lot of horse trading.”
Although cross party consensus exists on a number of high profile transport projects, namely high-speed rail (HSR) and longer rail franchises (the latter he says was a Liberal Democrat policy long before it became Labour and Conservative gospel). The difference between the parties lies in how each will pay for big infrastructure projects like HSR or even light rail schemes.
The MP for Lewes says “It’s simply not enough to suggest good ideas, we need to explain how we would pay for them, we will introduce a National Infrastructure Bank similar to the Nordic Investment Bank and the European Investment Bank which both manage infrastructure investment.” This model will have guarantees from the Government, but importantly investment decision making would be undertaken by professionals, not the state.
Since transport infrastructure is inherently a long-term investment, but consecutive British Governments have required quick wins, it has meant that our transport infrastructure has been neglected and fallen way behind most of mainland Europe. Baker says, “The Infrastructure Bank would attract institutional investors like pension funds which require long-term investment.”
It’s no coincidence that Norman Baker’s office at Portcullis House is next door to Vince Cable MP, the Lib Dem Shadow Chancellor (and hailed as the man who predicted the current economic crisis). The two MPs are finalising their Party’s manifesto policy on road user charging.
Taking the case of paying for HSR, Baker is very clear, “We would use revenue generated from lorry road user charging to pay for the Britain’s second HSR link and then use that link as a revenue source to pay for the next stage, repeating the process until we have a comprehensive network.”
Baker’s road user charging plans will charge all motorised vehicles using trunk roads and motorways. Yet, he makes it clear, “Vehicles over 3.5 tonnes i.e. lorries will raise revenue, those under 3.5 tonnes i.e. cars, vans & small trucks, will overall be revenue neutral.”
He continues, “charging lorries and other motorised vehicles will be brought in simultaneously, so that the benefits of his proposed reduction of fuel duty and scrapping of road tax (or reduced to the EU minimum for lorries) kick in at the same time.”
Baker states, “The charge for lorries will be similar to schemes run in Germany and Austria, based on emissions. It is also designed to encourage modal shift to rail or short sea shipping and will ideally help ease traffic congestion.”
Baker believes that “Instead of a tax system that is based on targeting essentially good things such as employment, governments should tax bad things like pollution.”
The Lib Dem road user charging scheme will be based on car use, Bakers explains, “ it is true that a 4x4 driving up the M1 will cost a motorist more, but I would point out that a motorist driving a clean car in a rural area will be much better off. So, if a motorist opts to switch to a lower carbon vehicle then they will pay less.”
With Manchester and Edinburgh giving a very clear “no”, to local referendums on congestion charging, Baker reiterates, “selling road pricing to the public will be key, we must be completely honest. If London’s Congestion Charge was actually about tackling congestion, then every car would pay no matter if it is a low emission or electric.”
Speaking to Baker, brings to mind Sun Tzu’ book ‘The Art of War’, which refers to ‘strategy’ as requiring quick and appropriate responses to changing conditions. Clearly, the result of the next General Election will create some unexpected situations. The battle for truth in Iraq may be lost, but the minefield of road user charging has yet to be swept.