Kinnock faces opposition to plan for ‘fair’ transport prices

Date: 24/09/1998

By Renée Cordes

TRANSPORT ministers from member states with underdeveloped road networks are set to oppose moves to ensure that taxes on cars, lorries and other commercial vehicles reflect the true costs of travel.

Ideas outlined in Transport Commissioner Neil Kinnock's recent White Paper on 'fair' pricing are aimed at easing road congestion and alleviating environmental damage.

But while some member states, including France, Spain and Italy, have already introduced road tolls along the lines suggested by Kinnock, countries with poor infrastructures are sceptical.

Greece, Ireland and Portugal are all expected to argue against the move when ministers meet next Thursday (1 October) for their first formal debate on the paper.

“It is one thing for the European Commission to say there is an economic case for this, but until the general public can be persuaded that these things are in their own interest, it won't happen,” said one diplomat.

“It will be difficult to convince the public this is in their interest unless they see significant improvements happening on the road. The economies are converging and the poorer states have a lot to make up in terms of infrastructure.”

Kinnock is already waging a so far unsuccessful battle to persuade EU governments to establish a harmonised system of road taxes for lorries by approving his proposal for a Eurovignette. Under this plan, charges would vary according to the age and polluting potential of lorries but the distance travelled would not be taken into account.

This latest initiative goes further, suggesting that other external costs should be reflected in the rate of tax applied, such as the damage caused to a country's infrastructure by different types of vehicle. This would mean taking account of journey lengths.

In an address to the European Parliament's transport committee earlier this month, Kinnock called for a harmonisation of road taxes, which currently vary by up to 3,000 ecu annually from one member state to another.

“Realities like that make the idea of a level playing-field in the transport market absurd,” he said. “The current patchwork of charging arrangements should obviously, therefore, be replaced by a coordinated and harmonised approach across the EU single market that is based on the 'user pays' principle.”

Kinnock believes this would also result in more efficient transport systems. “One of the problems with roads is that there are so many hidden costs,” said his spokeswoman Sarah Lambert.

In his White Paper, which was adopted by the full Commission in July, Kinnock calls for a review of charging practices in member states and the development of transparent accounting.

He also urges governments to develop urban pricing schemes to cover the costs of congestion and to extend distance-related road charges to include other costs, arguing that a common scheme such as this should eventually become mandatory.

To boost efficient road use in the long term, the Commissioner suggests that transport charges should more closely reflect the distances travelled by vehicles in future, in order to boost 'combined' transport such as road and rail.

Although ministers are divided over the plan, diplomats believe they will eventually approve a scheme along the lines suggested by Kinnock. “Most administrations have come around to the view that there really isn't an alternative in the long run,” said one.