CBI calls for £250bn transport investment
The head of the Confederation of British Industry (CBI) has called on the Government to dramatically increase its investment in transport.
The CBI is calling for a minimum of £250 billion of both public and private money over the next ten years, warning, “business patience and public tolerance is becoming exhausted by the slow pace of improvements.”
Digby Jones said: “We have a first-rate economy and it deserves a first-rate transport system, not the substandard infrastructure that is currently letting down the whole country.”
He praised the Government for initiating the ten year transport plan in 2000, but said “the plan has clearly stalled.”
“Despite some positive developments and some good work by the Strategic Rail Authority and the Highways Agency, far too much of the original 10 Year Plan did not deliver the substantial, transforming change that was hoped for.
“We appreciate the long-term nature of transport investment but the Government cannot make any more mistakes nor permit more delay.”
The CBI’s estimate of £250 billion is £70 billion more that the money earmarked by the Government.
They claim that the investment is the “minimum required to make acceptable progress.”
In the short term, the CBI is lobbying for an extra £2.7 billion between 2005 and 2008, the three financial years covered by the current public spending review.
Mr Jones said: “We are not calling on the Government to break the bank. The scale of transport spending business is asking for would be a relatively small price to pay to deliver to the fourth largest economy in the world the transport system it deserves.”
Research from the CBI indicates that 85 per cent of business leaders believes that transport is important for investment decisions, and 70 per cent ranks the UK’s transport system as poor.
In its submission to Government, the CBI highlights the need for improved reliability of rail, a lessening of congestion and widening the M1, M6 and M25.
The calls for greater investment are backed by the British Chamber of Commerce (BCC).
Its director of policy, Sally Low, said: “Business contributes substantially to transport through a range of taxes and wants to see a better bang for its buck.
“Transport problems are affecting the UK’s reputation as a good place to do business and over half of our members believe there is an urgent need to increase road capacity.”
Responding, the Department for Transport, said that the Government are already investing substantial sums of money in the UK’s transport infrastructure.
It stated “there are no quick fixes, but real improvements are being delivered” highlighting the widening of the M25, the new high speed Channel Tunnel Rail Link and the statistic that over one billion passengers used the railways last year.
The conclusions from its review of the Ten Year Plan will be published in the summer.
