Press Release 20th March 2006

Response to Road Transport Strategy, Billet VII, 2006 to be debated by the States at the 29th March sitting of the States of Deliberation.

Friends of the Earth Guernsey fully support the Environment Department's Traffic Strategy and would urge States Members to approve both the Strategy and a funding mechanism for it.

In particular the group is encouraged by the support for and proposed extension of the bus services, including school buses. We are also keen to see Travel Plans, Residents Parking Permits, improved facilities for motorcycling, cycling and vulnerable road users, and the promotion of smaller more fuel efficient vehicles.

We fully support moving Motor Tax, which is a fixed cost of motoring that is often disregarded at point of use, onto fuel. This increases the marginal costs and therefore the perceived cost of motoring in comparison to alternatives, such as bus use. This is in line with the 'polluter pays' principle which means that people pay in proportion to the amount of fuel they use.

We believe that the proposed increase in fuel duty of 1.2 pence per litre is not enough to encourage a change in people's motoring behaviour, but is probably the most efficient and fairest way of funding the Strategy. While we support Paid Parking where it encourages commuters to use the bus service rather than taking up public space with their private vehicles all day during the week, it has to be acknowledged that the drawbacks to Deputy Roffey's amendment are that:

a) 15p per hour (£1.20 per day for an 8 hour day) is not enough to encourage commuters to take the bus, as the cost would be the same as a return bus fare (although multi use tickets could reduce this cost slightly).

b) The introduction of Paid Parking entails administrative and resource costs, estimated to be approximately 8% of the gross income from parking charges, whereas there is no cost to increasing fuel duty.

c) There are no proposals to charge for private parking spaces, possibly through a 'benefit in kind' amendment to the Income Tax (Exemption of Benefits) Ordinance, 1995 (see page 634, para 8.6.3 of Billet VII 2006).

d) Local fuel prices are obscenely low, and do not reflect the true environmental costs of burning fossil fuels. The price has fluctuated widely in recent months, with no corresponding outcry from the public, and there is considerable scope to increase revenue from this source. Income generated from fuel taxes will go into general revenue and thereby be available for not only funding this Strategy, but also the local implications of global climate change such as sea defences.

e) With tax on fuel, everyone who drives contributes to the exchequer, including leisure and business visitors.

f) Therefore, the more efficient and fairer way of funding the Strategy is to increase the duty on fuel.

However, having said that, Friends of the Earth Guernsey would prefer to see both increases in fuel tax and paid parking introduced, preferably with higher charges for long stay parking than currently proposed.

This would go some way towards recognising our global environmental responsibilities by fiscally encouraging people to use alternative methods of travel wherever possible.

It is not enough to just fund the Strategy, we have environmental responsibilities that need to be seriously addressed.

Michelle Levrier
on behalf of Friends of the Earth Guernsey.

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