NATIONAL REPORT — BELGIUM
|
State |
Belgium |
|
Report Compiled by: |
Transport and Mobility Leuven |
|
Date |
13 September 2001 |
|
National Organisation Responsible for Assessment of Pricing Issues
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Organisation: Ministry of finance (federal government) Role: Address: Administratie van Fiscale Zaken Rijksadministratief Centrum Financietoren bus 52 Kruidtuinlaan 50 B-1010 Brussel Contact: Tel: ++32 (2) 210.33.02 Fax: ++32 (2) 210.33.07 E-mail: minfin7@euronet.be WWW: http://www.fgov.be Organisation: Ministry of finance (regional government) Role: Address: Phoenixgebouw (10-11de verdieping) Koning Albert II-laan 19 B-1210 Brussel Contact: Tel: +32 (2) 553.64.11 Fax: +32 (2) 553.64.55 E-mail: kabinet.vanmechelen@vlaanderen.be Organisation: city councils Role: For example Louvain: Address: Boekhandelstraat 2 3000 Leuven Contact: Tel:++32 (16) 21.15.11 Fax:++32 (16) 21.15.99 E-mail: financien@leuven.be WWW: http://www.leuven.be. |
1 Current and Historic Pricing Activities
1.1 Tax structure for private cars
At purchase:
Taxes for ownership:
Taxes for use of the vehicle:
1.2 Tax structure for goods vehicles
For the taxes at purchase and the taxes for ownership: see tax structure for private car.
Taxes for use of the vehicle:
See above + a tax depending on the weight of the vehicle:
from 2,004BEF (50.1€)
to 3,996BEF (9.9€)
1.3 Previous examples of urban road pricing
None.
1.4 Ongoing examples of urban road pricing
1.5 Future commitments to urban road pricing
None
2 Projects
2.1 Details of relevant ongoing projects
Liefkenshoektunnel: Prices for vehicles lower than 2.5m are 140BEF(3.5€) or 108BEF(2.7€) (teletol), higher than 2.5m, 560BEF(14€) or /433BEF(10.83€) (teletol).
Eurovignette:
Pay-Parking-areas: in the city centre, exploited by the city, prices from 40BEF(1€)/h to 60BEF(1.5€)/h
Private (mostly underground) parking areas in city-centra and surroundings, prices varying from 30BEF(0.75€)/h to 75BEF(1.87€)/h.
3 Legal and Insitutional Issues
3.1 Current legal situation regarding urban road pricing
The legal responsibility for pricing issues is detailed below;
|
Pay-parking: |
City-council |
|
Liefkeshoektunnel : |
Flemish government |
|
All other pricing issues: |
Federal government |
4 Relevant documents or WWW links
NATIONAL REPORT - DENMARK
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Report Compiled by: |
PLS RAMBOLL Management A/S |
|
Date |
13 August 2001 |
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National Organisation Responsible for Assessment of Pricing Issues
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Organisation: Ministry of Transport Role: Address: Frederiksholms Kanal 27 1220 København K Contact: Iben Schiøtz Tel: +45 33 92 33 55 Fax; +45 33 12 38 93 E-mail: is@trm.dk WWW: www.trm.dk |
1 Current and historic pricing activities
1.1 Tax structure for private cars
The Danish National Authorities have several duties relating in various ways to acquirement and usage of a vehicle. The duties vary in effect and purpose, since some are strictly meant for yield provision and others are seeking to regulate behaviour.
Registration fee
More than two thirds of the price of a private car is conformed by duty to the state. The registration fee is made out on the basis of the sale price of a car including VAT, which means that a buyer also pays a 180% duty of the VAT.
The main part of the state revenue created from the taxation of cars is constituted by the registration fee, which in 1996 amounted to a total of 50% of the total revenue of the taxation on vehicles for private and commercial transport.
Owner duty/vehicle excise duty
The vehicle excise duty, which is calculated on the basis on cars self-weight, has been replaced by an owner duty, which is calculated on the basis of cars fuel consumption. The owner duty is primarily initiated in order to motivate the consumer to purchase a car upon more environmental friendly criteria.
Price example (biannual excise duty in DKK):
|
Km. per litre |
Petrol engine |
Km. per litre |
Not petrol engine |
|
Above 19,9 |
250 |
Above 32 |
40 |
|
Under 4,5 |
8860 |
Under 5,1 |
11920 |
The transition to the owner duty took place in the period from 31 January 1997 to 1 July 1997. This implies that a vehicle excise duty is still being levied from the owners of cars registered before 31 January 1997, while the duty system present in force for cars registered in the period 1 February 1997 to 1 July 1997 was optional for the owner concerned. Eventually, an owner duty is being levied from all owners of a car registered after 1 July 1997.
Price example (biannual duty in DKK):
|
Petrol engine |
Not petrol engine |
|
|
Up to 600 kg |
820 |
1250 |
|
4901- 5000 kg |
9200 |
13700 |
Ecological tax — energy, CO2 and sulphur
The ecological tax scheme is a very considerable contributor to the state finances. In the draft budget for 2000 the state thus expected a yield amounting to almost 10 billion DKK. Price overview (rate pr. litre fuel in DKK):
|
Tax on energy |
CO2-duty |
|
|
Petrol |
3,97 |
0 |
|
Diesel |
2,30 |
0,27 |
There is also a tax levied on the sulphur content in the fuels. The tax is 20 DKK/kg and is also calculated specifically for each fuel.
Duty on third party insurance
The duty on third party insurance is levied on the holders of the compulsory insurance, and is a pure tax not intended to influence behaviour in any way.
1.2 Tax structure for goods vehicles
The Eurovignette Service
The Eurovignette Service is a duty scheme established in co-operation with Germany, Sweden and the Benelux countries. The duty, which in Denmark has been levied along with the vehicle excise duty, is intended to ease the border crossing traffic. The idea behind the duty is that a special road tax for a car registered in a foreign country doesn’t have to be levied tax entering Danish roads and vice versa, in that the duty has already been paid.
The duty only applies to vehicles above 12 ton and is administrated by the Ministry of Taxation.
Registration fee
The registration fees for goods vehicles are reduced to 95% compared to the scheme for private cars mentioned above.
From the reduction follows a number of restrictions. First of all the cars carry yellow registration plates and are restricted only to front seat passengers unless used as taxies or buses. Secondly, the scheme also contains a number of restrictions concerning the daily use, which has to be for occupational purposes.
Ecological tax — energy, CO2 and sulphur
Owners of goods vehicles also response to the ecological taxation scheme outlined above.
1.3 Previous examples of urban road pricing
Road taxes are a relatively new phenomenon in Denmark, in that cost in connection with maintenance and construction of roads are funded via budgets by the overall taxation scheme. Within the last three years, however, a road tax has been introduced in the shape of Storebaeltsbroen and Oeresundsbroen, the bridges connecting Sealand with Funen and Sealand with Malmö, Sweden. The road taxes on these stretches cannot be regarded as a behaviour regulating tax, but strictly as user's fee as a financial supplement in order to achieve sufficient funds for the construction.
For Ongoing examples of urban road pricing, see "Projects".
1.4 Future commitments to urban road pricing
Terms of reference for the preparation of the basis of decision concerning road pricing.
The background for the preparation of the terms of reference and the appointment of the commission is the signed agreement between the government parties agreed upon 3 October 2000 and agreements with Socialist People’s Party (SPP) and the Unity List — Red-Green Alliance (UL) in connection with the annual budget for 2001.
It is the purpose of the commission to prepare a framework constituting the basis of future decision regarding the implementation of a road pricing scheme in Denmark.
It is apparent by the TOR that the government will consider whether an alteration of the taxation of cars can reduce the environmental consequences of traffic. The government has committed itself by the political agreement to explore whether the introduction of road pricing will reduce the traffic in the major cities in Denmark.
2 Projects
2.1 Details of Relevant ongoing Projects
Akta is the name for the Danish part of a project (PROGRESS) initiated by the EC, which aim is to demonstrate and test road pricing in eight European cities, Copenhagen included.
The principal aim with the Danish project is to carry out an experiment in a considerable scale, where approximately 500 motorists will be asked to test a system with road pricing under circumstances as realistic as possible. From August 2001 to May 2002 the motorists will have a measuring device installed in their cars. The device keeps track of the cars physical position and determines the costs of driving in that particular place at that particular time of the day. The purpose is that the experiment provides knowledge about how road pricing affects road users’ behaviour and the pattern of traffic. It is not the intention that the experiment will function as the preparation of the actual implementation of the system.
FORTRIN
In June 1998 the Ministry of Transport, the Danish Transport Council and the Technical University of Denmark launched a research programme on Intelligent Transport Systems (ITS). The primary aim of the programme is to analyse the possibilities of regulating traffic by means of a road pricing system based on car type, number of kilometres driven, time-of-day and place.
The Technical University of Denmark has via this programme worked out several theoretical based examinations of user attitudes towards road pricing and created a model for a road pricing system.
3 Legal and institutional issues
3.1 Current legal situation regarding urban road pricing
Besides the previously mentioned payment for vehicles crossing the bridges over The Great Belt and Oresund there are no legal framework for urban road pricing.
4 Relevant documents and WWW links
4.1 References
4.2 Other Key Documents
In March 2000 the Danish Ministry of Transport issued a technical report describing various problems and issues implied by the adoption of a road pricing system. The report describes technical and legal issues as well as other international experiences. The report also contains to case scenarios concerning the implementation of road pricing in Copenhagen.
4.3 WWW links
National highway authority
The Danish Road Directorate: www.vejdirektoratet.dk
Danish Transport Agency: www.fstyr.dk
The association of Danish Car Owners: www.fdm.dk
Danish Motorcyclists Association: www.dmc-org.dk
Green organisations
NOAH: www.noah.dk
Copenhagen Community: www.kobenhavn.dk
National Transport Council: www.transportraadet.dk
Danish Road Association: www.dv.dk
Danish Transport and Logistics Association: www.dtl-dk.dk
Danish Transport Research Institute: www.dtf.dk
4.4 Upcoming events
The appointed road pricing commission is expected to initiate the activities preparing the decision framework during this autumn.
NATIONAL REPORT - FINLAND
|
Report Compiled by: |
Kristian Appel / Traficon Ltd |
|
Date |
31.12.2001 DRAFT version 0.8 |
|
National Organisation Responsible for Assessment of Pricing Issues
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Organisation: Ministry of Transport and Communications Role: Prepares and implements Transport Policy in Finland Address: Eteläesplanadi 16-18, Contact: Mr. Matti Roine Tel: +358-9-1602577 Fax: + 358-1602596 E-mail: matti.roine@mintc.fi WWW: www.mintc.fi Organisation: Ministry of Finance Role: Co-ordinator of national economic policy Address: Snellmaninkatu 1 A, Helsinki Tel: +358 9 1601 Fax: E-mail: WWW: www.vn.fi |
1 Current and historic pricing activities
1.1 Tax structure for private cars
Automobile tax
In Finland the initial vehicle taxation is the responsibility of the Customs.
Some vehicle categories are not subject of vehicle tax: trucks, buses over 1875 kg, passengers cars over 6000 kg and several types of speciality vehicles. The Automobile Tax Act stipulates that if the vehicle structure, intended use or ownership is altered in any way, these alterations will be subject to automobile tax. AKE is responsible for the re-taxation of vehicles due to the changing of parts or any other structural alteration (tuned mopeds, vehicle type and class alterations, vans).
All other vehicles are subject to vehicle tax; passenger cars under 6000 kg, buses under 1875 kg, some vans and camping cars and service vehicles.
The tax is equal to the so called taxation value, which is the import price including toll, if relevant, minus 760 Euros + some additional minor reductions. This means as an example that the vehicle tax for an ordinary passenger car is some 85 % of the import price.
Vehicle tax
All passenger cars, vans and certain special vehicles registered in Finland are subject to vehicle tax, whether or not they are actually used. The owner or holder of the registered vehicle is obligated to pay vehicle tax.
The vehicle tax is 84 Euros for vehicles registered prior to 1994, and 117 Eurasia for vehicles registered in or after 1994. The vehicle tax taxation period is one calendar year, and the tax is levied in one payment with a tax form sent by AKE ( the Vehicle Administration is an administration, service and information centre operating under the aegis of the Ministry of Transport and Communications). If the vehicle is registered or becomes subject to taxation after the beginning of the taxation period, the vehicle will be taxed for the days remaining in the taxation period after the date of registration.
The vehicle tax does not correspond to the highway tolls levied in some countries, as it is an annually levied tax based on vehicle ownership.
Diesel tax
A yearly diesel tax must be paid for registered passenger cars, vans, lorries and speciality vehicles, which completely or partially use fuels other than gasoline (such as diesel oil, motor fuel, electricity, liquefied petroleum gas or natural gas).
The diesel tax is determined based on the total vehicle mass (vehicle mass + capacity) and other technical specifications (vehicle type, axle structure, hitch facilities), which are or should have been noted in the vehicle registration.
Examples of the tax are: passenger car 25,20 Euro/ each 100 kg vehicle mass, vans correspondingly 4,56 and for other vehicles like lorries ranging from 4,56 to 10,56. If the vehicle is registered in the middle of the taxation period, the diesel tax must be paid for the month in which the vehicle was registered, even if registration falls on the last day of that month.
Fuel fee and Surtax
If diesel vehicles use a lower tax diesel oil fuel (usually light grade fuel oil), a fuel fee will be charged. The surtax mandated by the Motor Vehicle Tax Act must be paid for motor vehicles, which use lower tax fuels than stated in the vehicle registration.
Fuel tax
There is a tax on all liquid fuels ranging from 46 to 54 Eurocents for gasoline and 28 to 30 Eurocents for diesel fuel.
Value added tax
A value added tax of 22 % is added on all retail prices of fuel, vehicles, related services etc.
1.2 Tax structure for goods vehicles
For details see above. As a summary:
1.3 Previous examples of urban road pricing
In Finland urban road pricing has not been applied.
There is not even any interurban road tolls. However, on one motorway section from Helsinki to the City of Lahti so called "shadow tolling" is applied. Based on a Concession, a private company has built and is now operating and maintaining the motorway for a certain period.
Proposals for urban pricing have been made and alternatives studied and analysed with a few years intervals since the early 1990’ies for the whole Metropolitan Area of Helsinki or the Helsinki City Centre only. For example in 1993 a huge effort was made to reach an agreement on this issue between the cities and state authorities for a multimodal investment package for the whole region to solve all major problems in the transport system. On the authority level, consensus on the proposal was reached between the two relevant ministries (Finance, Transport), the three main cities concerned (Helsinki, Espoo, Vantaa) and the Road Administration. However, the proposals were doomed by many political parties, the media and motorist organisations and thus withdrawn. Since then the issue has been discussed more or less on an academic level only, as the lack of political acceptance has been very obvious. All relevant authorities has together or separately been involved in many European research activities in the field (see below).
There is also a ongoing debate and studies being conducted about how to finance the public road network in Finland, of which some major motorway sections of the TERN still are missing.
1.4 Ongoing examples of urban road pricing
None (see above)
1.5 Future commitments to urban road pricing
No commitments have been made for future implementation of urban pricing.
However, the issue of urban and road pricing has been taken up in political and academic discussions more and more often the last few years. The main goal of Helsinki being partner in PRoGRESS is to produce and disseminate knowledge on the issues and the effects of a potential pricing scheme in order to build up acceptance.
2 Projects
2.1. Details of Relevant ongoing Projects
The Ministry of Transport and Communications is at the moment involved in the following activities alone or together with other parties mentioned below):
PRoGRESS (2000-2004):
Main local activities: Development, modelling and assessment of urban pricing scenarios; building of acceptability for urban pricing
Partners: City of Helsinki, National Road Administration, Helsinki Metropolitan Area Council, Traficon Ltd
VIKING in the MIP / Domain 6:
Euroregional project 2001-2006 on Electronic Fee Collection with the objective to support the development of interoperable payment methods in transport services, and the integration of payment systems for such services on a Nordic level.
Nordic partners: Road Authorities in Norway, Sweden and Denmark. Local partner: Traficon Ltd
CARDME: European concerted action for Interoperable Fee Collection
Activity started in 1994 and ending 2002. Discussion forum on European level supported by CARDME-projects producing proposal for interoperable EFC in Europe. Will probably be continued by new similar activity (with new name).
Partners: ECE, Transport Authorities from most European Countries
Local partner: Traficon Ltd
CESARE 2:
EU-project aiming at a complete MoU including technical specification for interoperable motorway tolling in Europe. The MoU to be signed by ASECAP-members at first, and then possibly enlarged with new operators/countries entering the tolling business.
Partners: ASECAP, TRL, DETR, RWS, SNRA, Traficon representing MTC
3 Legal and Institutional Issues
3.1 Current legal situation regarding urban road pricing
According to existing laws, no charges can be applied for the use of the road network, with the only exception being the few ferries on the public road network. However, no fees are charged on the ferries.
The Ministry of Finance has consequently stated, that any fee charged for the use of road infrastructure is to be considered as a tax.
In 1993 a complete law proposal including zones and tariffs was made to enable the proposed urban road pricing scheme in Helsinki. As the pricing scheme was abandoned, the proposal was never given to the parliament.
3.2 Institutional structure for road pricing
Currently, there is no institutional structure for road pricing
As stated above, the current view of the Ministry of Finance is that any road user fee charged is a tax. This implies that the Ministry would be involved. However, this question has not been brought to a final decision, as no road pricing scheme has yet reached that level of decision making.
In a future situation regarding urban pricing it is likely, that a special law for each pricing scheme must be in place. If an urban and local pricing scheme aims at earmarking the revenue (which at least until now have had no acceptance by the Ministry of Finance) for local investments in the transport sector, it is likely, that the local and regional authorities should be responsible for the implementation and running of the system. These authorities are:
Finnra owns and operates most urban motorways in the Helsinki Area. HMAC is, in co-operation with the other authorities, responsible for regional traffic policy and planning and organises regional public transport. The four cities are responsible for local traffic policy and planning as well some urban motorways and the street networks. The cities are the only one of these entities, that collect taxes (the state is the other tax collecting entity).
4 Relevant documents or WWW links
4.1 References
Ehdotus Helsingin seudun liikenneinvestointiohjelmaksi ja sen rahoitukseksi, Liikenneministeriö 1993, 30/93 (Ministry of Transport and Communications, report 30/93, A Proposal for a Transport Investment Programme in the Helsinki Region and its financing)
4.2 WWW links
National government: www.vn.fi
Ministry of Transport and Communications: www.mintc.fi
National highway authority: www.tiehallinto.fi
Motoring organisations: www.autoliitto.fi
Green organisations: www.vihrealiitto.fi
Key cities
Helsinki: www.hel.fi
Espoo: www.espoo.fi
Vantaa: www.espoo.fi
Helsinki Metropolitan Area Council www.ytv.fi
Professional organisations: www.traficon.fi
5 Other Issues
EFC and Interoperability
In Finland it seems to be a common view, that any road pricing scheme must be fully automatic and electronic. Distance-based charging has a lot of support. Traditional toll plazas will not be built at least not in urban areas. It is also clear, that it is not possible to require the motorists to obtain several different sets of equipment to be fitted in their cars. Hence, interoperability of national and European road pricing systems is a must. Looking at the situation in Europe today, it is not obvious how this interoperability can be achieved. Regarding "traditional" microwave-based (DRSC) systems European interoperability might be agreed upon in a few years. But regarding GNSS/CN-based systems and between those and DSRC-based systems, the situation is open. This might also be a very important obstacle towards implementation of urban pricing, where in addition interoperability with parking and public transport payments systems should be the goal.
NATIONAL REPORT - FRANCE
|
Report Compiled by: |
Pascal VINCENT |
|
Date |
10-07-01 |
|
National Organisation Responsible for Assessment of Pricing Issues
|
Organisation: CERTU Role: Public centre for studies Address: 9, rue Juliette Recamier, 69456 Lyon cedex 06 Contacts : Pascal Vincent, Thierry du Crest Tel: (33) (0)4 72 74 58 23 (58 39) Fax: (33) (0)4 72 74 59 20 E-mail: pascal.vincent@equipement.gouv.fr Thierry.du.crest@equipement.gouv.fr WWW: www.certu.fr/transport |
1. Current and historic pricing activities
1.1 Tax structure for private cars
Main taxes:
1.2 Tax structure for goods vehicles
1.3 Previous examples of urban road pricing
When the northern part of the ring road in Lyon was put in service in 1997, a toll was implemented by the concessionaire. But the reaction of the population was so negative that the mayor of Lyon decided to drop the toll.
In the Suburb of Toulouse, an existing national road was transformed into a motorway in 1996. But the reactions of the former users and the local population was so unfavourable that the toll plaza was removed. The local authorities had to purchase back the stretch from the concessionaire
1.4 Ongoing examples of urban road pricing
There are 3 successful urban road pricing schemes in France :
1.5 Future commitments to urban road pricing
In the west of the Paris region, a section of the A86 outer ring road, below the famous Forêt de St Germain, is being built under the regime of concession (cofiroute) and will be tolled. Opening planned in 2008.
2 Projects
2.1 Details of Relevant ongoing Projects
The three cities of Lyon, Grenoble, and St Etienne have launched in 2000 a common study on mobility financing and pricing, concerning all modes. As part of this study, road pricing is considered. Several scenarios (cordon, vignette, distance pricing…) will be studied
3 Legal and Institutional Issues
3.1 Current legal situation regarding urban road pricing
Until the mid eighties, only the national government was allowed to implement road tolls on motorways. Tolling has been used a lot since the end of the fifties, to develop the French interurban motorway network. But road pricing has not usually been implemented in urban areas. Since 1985, local authorities can implement road pricing but only for bridges and tunnels and only for infrastructure financing. New forms of road pricing such as cordon or distance pricing are not possible yet.
3.2 Institutional structure for road pricing
The feature of the French situation is the absence of an institutional structure which could both operate and use the incomes of a pricing system for all modes. Public transport has been the responsibility of the local authorities, since the beginning of the eighties. There are 3 levels of roads : at municipality, département (county) and national level. Each level is responsible for its network. The French tradition is voluntary co-operation between authorities which have interest and power in a field. Additionally, public/private partnerships are also very common.
4 Relevant documents or WWW links
4.1 References
There is a page dedicated to road pricing on the Certu website (www.certu.fr/transport click on "tarification des déplacements"). It gives a broad view on the acceptance issue, several examples over the world, and an important number of links.
Certu has published 2 documents on road pricing "péage urbain" and "comportement Des automobilistes face au péage urbain" (see the catalogue in www.certu.fr ). A new document is to be published in 2001 "Tarification des déplacements urbains. La question de l’acceptabilité".
4.2 Other Key Documents
LET (laboratoire d’économie des transport — transport economic laboratory ) published a number of publications see www.ish-lyon.cnrs.fr/let
4.3 WWW links
National highway authority;
Ministère de l'Equipement, du Logement et des Transports www.equipement.gouv.fr
Motoring organisations;
CCFA : Comité des constructeurs français d'automobiles http://www.ccfa.fr/
FFAC: Fédération francaise des automobile clubs http://www.automobileclub.org
Key cities;
GART : Groupement des autorités responsables de transport www.gart.org
4.4 Upcoming events
Certu and LET are foreseeing a seminar on urban mobility financing and pricing, which may take place in 2002.
NATIONAL REPORT - GERMANY
|
Report Compiled by: |
Jens Schade |
|
Date |
July 2001 |
|
National Organisation Responsible for Assessment of Pricing Issues |
Organisation: Federal Ministry of Transport, Building and Housing Role: Address: Dienstgebäude Krausenstraße 17—20, 10117 Berlin Contact: Tel: +49 30 2008-0 Fax: +49 30 2008 1920 or 1922 E-mail: buergerinfo@bmvbw.bund.de WWW: http://www.bmvbw.de/ |
1 Current and historic pricing activities
1.1 Tax structure for private cars
Taxes on acquisitions
Taxes on ownership
Taxes on motoring
Taxes on vehicles
1. Registration tax
For purchase of a vehicle, value added tax is levied at the standard rate, which at present is 16 %. There are no other taxes or duties on the acquisition or the registration of the vehicle. On registration (and de-registration) of vehicles, only an administrative fee is imposed. For the initial registration the fee is DM 50. At subsequent registrations the fee is DM 56 in the case of a change of residence and DM 35 without change of residence.
2. Circulation tax
Annual circulation tax (motor vehicle tax) applies to all motor vehicles. See below;
Motor vehicle taxes
|
Emission group (Private cars) |
Valid
|
Circulation tax per 100 cc (DM) |
|
|
Standard |
Diesel |
||
|
Euro 3 Euro 4 |
Until 31.12.2003 Since 01.01.2004 |
10,00 13,20 |
27,00 30,20 |
|
Euro 2 |
Until 31.12.2003 Since 01.01.2004 |
12,00 14,40 |
29,00 31,40 |
|
Euro 1 |
Since 01.01.2001 Since 01.01.2005 |
21,20 29,60 |
45,10 53,50 |
Commercial cars: The amount of tax is based on the weight of the vehicle. Increased rates apply for vehicles not fulfilling certain emission and noise criteria
3 Taxes on motor fuels
The following excise duty rates expressed in national currency apply to motor fuels.
Fuel Unit Excise Total
Unleaded petrol 1,16DM per litre
Diesel 0,80 DM per litre
Increase: 01.01.2001 0,06 DM
01.01.2003 0,06 DM
All motor fuels are liable to the standard rate of VAT, which currently stands at 16%.
4 Insurance tax
Premiums for insurance in the vehicle sector are subject to insurance tax of 15 %.
1.2 Tax structure for Heavy Goods Vehicles
Heavy Goods Vehicles - Motorway User Charges
The new emission-based charging structure valid as of 1 April 2001.
The charges have to be paid for the use of all federal motorways by all heavy good vehicles with a maximum permissible gross laden weight of not less than 12 tonnes (exception: buses, coaches and self-propelled machines).
HGV Motorway User Charges (as of 1 April 2001 in Euros)
|
Max 3 axles |
Max 4 axles |
||||||||
|
1 day |
1 week |
1 month |
1 year |
1 day |
1 week |
1 month |
1 year |
||
|
Euro 0 |
8 |
26 |
96 |
960 |
Euro 0 |
8 |
41 |
155 |
1550 |
|
Euro 1 |
8 |
23 |
85 |
850 |
Euro 1 |
8 |
37 |
140 |
1400 |
|
Euro II and cleaner |
8 |
20 |
75 |
750 |
Euro II and cleaner |
8 |
33 |
125 |
1250 |
A distance-based charge for HGV on highways (Autobahn) is planned for 01.01.2003 (possibly 0,25 DM per km)
General fiscal strategy in transportation and objective of the measure:
In the intention of the legislator the purpose of taxing car transport in Germany was aimed at financing road infrastructure. This intention is reflected in the earmarking of fuel tax revenues for road construction since 1955 (motorways and federal trunk roads). Since 1973 the revenues from fuel taxation could also be spent for other purposes in the transport sector. Apart from the intention of increasing the federal income, the intention to tax cars according to environmental damages caused is added (e.g. different fuel tax rates for leaded and unleaded petrol). In this respect, the vehicle tax reform 1997 has fixed tax rates for passenger cars according to their emissions
1.3 Previous examples of urban road pricing
MobilPASS field trial in Stuttgart, Germany (1994-1995):
The aim of the trial was to test the efficiency of a road pricing system as part of an intelligent traffic management. Major objective of the field trial was to test the efficiency of demand related urban road pricing schemes. Major issue were technical test on the one hand and on the other hand evaluation of test driver's and reactions (e.g. trip reduction, change of transport mode, route change, time shift of trip, car pooling or better organization of mobility by combining trips) in relation to the actual prices for using road system and to test public opinion to such road pricing schemes.
A cordon line was established around the southern entrance to the city centre, with three charging points controlling access. Some 400 volunteer motorists agreed not only to test the charging equipment but to subject themselves to actual charges and to participate in a number of interviews and surveys. In return, they received a block allocation of funds that was intended to more than cover expected charges. At the margin, then, these volunteers paid fully for any trip taken, even though they made money from the experiment as a whole. To be sure they realistically perceived the trip as costing them money, they were required to recharge their debit cards each month using their own funds, and the block allocation was paid three weeks later. The charging equipment consisted of an on-board charging unit and a rechargeable debit card. A variable message sign outside the cordon informed participants what the charge was at the particular time. During the test 5 different time related - one with different charges for alternative route - road pricing schemes were tested. Prices for entering the city ranged from 0 to 7 DM per entrance with an average of 2.50 DM
Key results:
It was clearly demonstrated, that while trial participants responded noticeably to the MobilPASS system, they primarily tended to seek behavioural alternatives with their car and only secondarily changed to other mode of transport. Results showed that drivers reacted on different prices on various ways. According to the test drivers some 10% to 28% of trips were influenced by road pricing:
Despite positive results of MobilPASS field trial, it was not implemented because mainly of political problems.
2 Legal and Institutional Issues
2.1 Current legal and institutional situation regarding urban road pricing
At the moment it is legally not possible to introduce urban road pricing. From the point of tax law (e.g. dimension of charges/taxes; revenue use) and also human rights (non-restriction of basic rights; privacy issues) road pricing could be implemented but the responsibility of different institutions for different categories of roads proves to be a hindrance for the introduction.
An example:
The federal government ("Bund") is responsible for the operation of all highways ("Autobahnen") and major interurban roads ("Bundesstrassen). For most of the other roads the responsible authorities are the "Länder". If a city intends to introduce local road pricing the "Land" has to decide on the scheme. But if there is a major interurban road (Bundesstrasse) crossing the city than the State has to decide on the scheme. This demarcation dispute leads among others to an unclear legal situation.
3 References and WWW links
National highway authority
Federal Ministry of Transport, Building and Housing http://www.bmvbw.de/
Theses and recommendations of the Government Commission on Transport Infrastructure Funding: http://www.BauNetz.de/bmvbw/publik/verkehrsstruktur.htm
Motoring organisations;
ADAC http://www.adac.de/
VCD http://www.verkehrsclub-deutschland.de/
Green organisations
Greenpeace http://www.greenpeace.de/
BUND http://www.bund.net/
Key cities;
Stuttgart
NATIONAL REPORT - GREECE
|
Report Compiled by: |
Konstantinos G. Zografos |
|
Date |
6/12/01 |
|
National Organisation Responsible for Assessment of Pricing Issues
|
Ministry of Development Role: Ministry Address: 20, Kanigos str, 101 81, Athens, Greece Contact: Mr. C. Theodorou Tel:+301-3816241 E-mail: gge@gge.gr WWW: www.ypan.gr |
1 Current and historic pricing activities
1.1 Tax structure for private cars
Private cars taxation in Greece involves: (i) the fuel taxation, and (ii) a special fee paid for renewing the vehicle circulation licence. On the 5th of April 1992 the fuel market was deliberated and since then fuel price has been determined according to the free trade competition laws and conditions (it is subject to demand and supply conditions). Information on the prices evolvement within the recent five years is presented in the Appendix I. On the other hand the special fee is paid to the public at an annual basis and its price depends on the type of engine of the vehicle.
On the 5th of April 1992 fuel market has been deliberated and since then fuel price has been determined according the free trade competition laws and conditions (it is subject to demand and supply conditions). The Greek legislation for fuel taxation was harmonised with the European Commission Legislation and fuel taxation has evolved as illustrated below
|
Date of Law Enforcement/Relevant Law |
Gasoline with lead |
Unleaded Gasoline |
Diesel |
Special Cases |
|
05.03.92 Law 2074/92 |
61500 |
47500 |
49000 |
|
|
08.08.92 Law 2093/92 |
119000 |
104000 |
68000 |
|
|
01.01.93 Law 2127/93 |
119000 |
104000 |
28000 |
|
|
01.01.95 Law 2303/95 |
- |
- |
72000 |
|
|
01.01.96 Law 2386/96 |
127000 |
111000 |
77000 |
|
|
18.04.96 Law 2399/96 |
127000 |
111000 |
77000 |
|
|
31.07.97 Law 2523/97 |
127000 |
111000 |
- |
|
|
09.24.98 Law 2648/98 |
127000 |
111000 |
- |
|
|
01.15.99 Law 2682/99 |
- |
- |
83000 |
|
|
08.05.99 Law 2743/00 |
- |
- |
- |
Ö |
|
18.03.00 Law 2836/00 |
- |
- |
- |
Ö |
|
06.11.01 Law 2873/00 |
- |
- |
83000 |
|
|
22.01.01 Law 2892/01 |
- |
- |
- |
Ö |
In the above table, the cells that remain blank imply that no reference to the respective fuel taxation is made in the corresponding law. Furthermore the Greek legislation related to the fuel taxation after the deliberation of the market has been focused on slightly changing (either increasing of decreasing) the tax per 1000lt. More specifically, the Greek laws that have been issued since 1992 that directly or indirectly affect the fuel taxation status are the following:
Summarising the Greek legislation on fuel taxation it can be concluded that the taxes on fuels are prescribed by the Ministry of Economics. The tax on special categories of consumers like the farmers is lower. Based on the frequency of the regulations identified since 1992 it can be derived that almost every year the taxes on all categories of consumers are reconsidered. The most recent legislation implies that the tax on: (i) Gasoline with lead is at 127000 DRA per 1000lt, (ii) Gasoline without lead is at 111000 DRA per 1000 lt, and (iii) Diesel is at 83000 DRA per 1000 lt.
1.2 Tax structure for goods vehicles
The historic evolvement of fuel pricing for special types of vehicles (like the ones used for agricultural purpose) is illustrated in the table above
2 Legal and Institutional Issues
2.1 Current legal situation regarding urban road pricing
The Greek legislation for fuel taxation was harmonised with the European Commission Legislation and fuel taxation has evolved as illustrated in the table above.
2.2 Institutional structure for road pricing
The fuel taxation policy is decided by the Greek Parliament, is prepared and introduced by the Ministry of National Economy in co-operation with the Ministry of Economics, the Ministry of National Development, the Ministry of Commerce, the Ministry of Transport and Telecommunications, and the Ministry of Agriculture, and is enforced and implemented by the Ministry of Economics.
Parking Pricing
In Greece there are no comprehensive parking policies for the Metropolitan Areas of Athens and Thessaloniki which constitute the major urban conurbation of the country, and thus there is no homogeneous or rational parking pricing in these areas. Parking areas in Greece, as in most countries, can be based on the following criteria:
Different rules apply for different types of parking especially with respect to the ownership or type of operation classification criteria. The legal and institutional issues concerning the establishment and the operation of a parking area in Greece, is mainly based on the Presidential Decree 455/76, while some minor addendum have been instituted in 1991 and 1993. This Decree is mainly referred to off-street car parks and their institutional issues. Based on that Decree, the off-street parking areas are distinguished in covered parking areas (e.g. the multi-storey car parks) and in open-air parking areas. Similarly there is distinction between private and state or municipal owned parking areas as well as between car parks that operate on a self-service basis or on a full service basis. However no specific legislation exists regarding the setting of a parking tariff. These tariffs are set in different way \s for different car park types.
On street parking always belongs to the jurisdiction of the Municipality where the road belongs to. The parking tariff is set by the respective department of the Municipal authority and it is approved by the Municipal or city Board. In cases where the parking is contracted to private enterprises - who usually undertake a study for parking demand and supply and in turn implement the parking places - the tariffs are proposed by the enterprise and they are approved by the Municipal Board. In these two cases the tariffs may or may be not set taking into account a transport policy and a parking policy for the jurisdiction of the specific Municipality. In cases where the parking space belongs to the municipality or has been rent by the municipality for this purpose the procedure is similar to the one described above. On the other hand if the parking space - either open or covered - belongs to a private enterprise or it operates by a private enterprise, the parking tariffs are subject to control by the Ministry of Development. The approval or disapproval of such a parking tariff is made exclusively on grounds having to do with the targeted inflation index by the government. As of today a maximum and a minimum tariff is set by these Ministries and the proposed tariffs are compared against these levels.
In cases where the parking facility has been built as a result of a call by a special Department of the Ministry of the Environment, Planning and Public Works (YPEXODE), the parking tariffs are set according to the offer of the selected bidder. Since the operation of such a parking is based on competition with other parking enterprises, or even with the municipal tariffs in the area, the offered tariffs usually match or they are slightly lower by the existing parking tariffs in that area.
It should be mentioned that this particular authority gathers money from private contractors who do not provide the necessary number of parking places in newly housing areas and so they are oblige to pay a special tax to the State.
There are also cases in which parking spaces are provided by Organisations of public interest such as the airport and the railway authorities etc. In these cases the pricing policy and the respective tariffs are set by the responsible department of each authority after approval of their Executive Boards. There is no need for approval; by the Ministry of Commerce or the Ministry of Transportation.
From the presentation of the parking pricing, it is concluded that in Greece there are no comprehensive parking policies for the Metropolitan Areas of Athens and Thessaloniki and thus there is no homogeneous or rational parking pricing in these areas. Moreover, different parking policies are set by different municipalities and respectively of parking pricing according to certain criteria. Another basic conclusion is that different rules apply for different types of parking, especially with respect to the ownership or type of operation classification criteria. Furthermore no specific legislation exists regarding the setting of the parking tariffs. These tariffs are set in different way \s for different car park types. The parking tariffs are subject to control by the Ministry of Development, Ministry of Commerce and the Ministry of Transportation.
3 Relevant documents and WWW links
3.1 WWW links
Ministry of Transport and Telecommunications: www.yme.gr
Motoring organisations
Automobile and Touring Club of Greece: www.elpa.gr
Key cities:
Athens: www.cityofathens.gr
Thessaloniki: www.thessalonikicity.gr
Patra: www.patrastoday.gr
Heraclion: www.heraclion-city.gr
Professional organisations
Technical Chamber of Greece: www.central.tee.gr,
Hellenic Institute of Civil Engineers www.ses.gr,
Athens Chamber of Commerce and Industry: www.acci.gr,
NATIONAL REPORT - IRELAND
|
Report Compiled by: |
Ian Bewick |
|
Date |
July 2001 |
|
National Organisation Responsible for Assessment of Pricing Issues |
Organisation: National Roads Authority Role: Managing the national road network Address: St. Martin's House, Contact: Tel: (+353 1) 6602511 Fax: (+353 1) 6680009 E-mail: info@nra.ie WWW: www.nra.ie |
1 Current and historic pricing activities
1.1 Tax structure for private cars and HGVs
Vehicle Registration Tax is chargeable and payable on first registration of a motor vehicle in the State. All motor vehicles in the State, other than those brought in temporarily by visitors, must be registered with the Revenue Commissioners. A vehicle must be registered before it can be licensed for road tax purposes.
Rates of motor taxation in Ireland are based on cubic engine capacity as follows;
Rates of motor taxation in Ireland
|
Cars |
HGVS |
||
|
Engine capacity (C.C) |
£ Annual |
Unladen Weight |
£ Annual |
|
Not over 1000, electric |
98 |
Not over 3000 |
160 |
|
1001 - 1100 |
146 |
3001 — 4000 |
202 |
|
1101 - 1200 |
160 |
4001 — 5000 |
261 |
|
1201 - 1300 |
173 |
5001 — 6000 |
362 |
|
1301 - 1400 |
186 |
6001 — 7000 |
489 |
|
1401 — 1500 |
200 |
7001 — 8000 |
616 |
|
1501 - 1600 |
247 |
8001 - 9000 |
761 |
|
1601 - 1700 |
262 |
9001 — 10,000 |
906 |
|
1701 -1800 |
306 |
10,001 — 11,000 |
1051 |
|
1801 — 1900 |
323 |
11,001 — 12,000 |
1196 |
|
1901 — 2000 |
340 |
12,001 — 13,000 |
1341 |
|
2001 — 2100 |
435 |
13,001 — 14,000 |
1486 |
|
2101 — 2200 |
456 |
14,000 — 20,000 |
1486 plus £145 per 1000kg or part thereof over 14000 KG |
|
2201 — 2300 |
477 |
20,001 or more |
2494 |
|
2301 - 2400 |
497 |
Electrical (not over 1500 kg |
54 |
|
2401 — 2500 |
518 |
||
|
2501 - 2600 |
607 |
||
|
2601 — 2700 |
631 |
||
|
2701 — 2800 |
654 |
||
|
2801 — 2900 |
677 |
||
|
2901 — 3000 |
701 |
||
|
3001 or more |
849 |
||
1.2 Ongoing examples of urban road pricing
Tolls are payable at two points in the Dublin area - M50 Ring Road between the N4 and N3 interchanges only and on the R131 East Link Bridge. In each case the toll is under IR£ 1.00 for cars, with higher tolls for vans and trucks. There are no tolls on other motorways or national routes
1.3 Future commitments to urban road pricing
A study into Road Pricing in Dublin concluded that;
"A cordon arrangement for the city centre, with peak period charges of £3, could produce significant traffic reductions in the central area — with vehicle delays reducing by 12-25%, with the precise impact depending on the level of user responsiveness to road use charges"
Hypothecation of revenues for traffic management and/or public transport enhancement will be critical in winning support from Dublin transport users.
Consultants conclude that road pricing could have a role to play in transport policy for Dublin; however, they also consider that the issue requires more detailed consideration in the context of an integrated approach to Dublin’s transport requirements and that any future pricing initiative is likely to require balancing by a range of other measures.
2 Projects
2.1 Details of Relevant ongoing Projects
Dublin participated in the CONCERT project (Co-operation For Novel City Electronic Regulating Tools) which aimed to apply smart-card payment and multimedia information technologies in innovative ways to reduce the environmental problems of mass car travel whilst achieving high levels of urban accessibility.
The Dublin demonstration involved a contact smart card - branded as the RAPID card - and was conceived and built as a payment method that offered an electronic purse and innovative chained mobility products. A limited demonstration involving the car park operator Dublin Corporation and the private bus operator PAMBO did take place and users aspects for Dublin report on the recruitment and Before surveys for Full demonstration as well as Before and During survey results for the Limited Demonstration
High acceptance by the travelling public of card methods of payment in both demonstrations indicates that using such technologies may a useful way of gaining public acceptance of congestion charging.
To implement a congestion charging scheme effectively, it may be necessary to integrate road price payment with other transport — for example parking and public transport.
The CAROLAN project aims to design a framework for the integration of ticketing systems from different transport modes and operators and to demonstrate the manner in which the payment method can be used to integrate the transport modes more closely. (need more info)
Public transport in Dublin already has been developing an integrated ticketing system using smart-card technology. The smart cards could have other applications, including parking and potentially electronic road pricing.
3 Legal and Institutional Issues
3.1 Current legal situation regarding urban road pricing
The National Roads Authority (NRA) was formally established as an independent statutory body under the Roads Act, 1993 with effect from 1 January, 1994
Section 57 of the Roads Act, as amended by the Planning and Development Act, 2000, allows the NRA to prepare a scheme for the establishment of a system of tolls in respect of the use of a public road. The NRA may also enter into an agreement with another person whereby that person agrees, inter alia, to pay some or all of the costs of the construction and/or maintenance of the road and/or to upgrade and manage the road. Toll charges may be used to repay all or part of the private funding involved.
3.2 Institutional structure for road pricing
While private sector funding has not been a feature of investment in national roads since the establishment of the Authority in 1994, the situation has changed with the adoption of the Public Private Partnership (PPP) approach for the provision of road projects.
PPP road schemes will be carried out on the basis of design/build/finance/operate contracts with a long-term concession period, usually of not less than 30 years. During this period the concessionaire will recoup at least part of the construction, on-going road maintenance and operation costs through the collection of tolls, with the balance coming from a public subsidy where necessary in the case of large scale expensive projects. In this way, most toll charges will be significantly below what would otherwise be required to repay the full costs involved in respect of the private investment required to supplement traditional sources of funding and boost the scale of the national roads improvement programme.
The Government have mandated the Authority to implement the PPP approach with the aim of securing investment of at least £1 b. (EURO 1.27 b.) from the private sector. Eight PPP projects were announced by the Authority in June 2000. These, together with the three pilot PPP projects previously identified, have a total estimated construction value of approximately £1.18b. (EURO 1.5 b.) The projects are expected to attract total private investment of about £700 m. - £800 m. (EURO 890 m. - 1,015 m.) a significant step towards the target included in the NDP for private finance in national roads.
4 Relevant documents and WWW links
4.1 References
A Study of Road Pricing in Dublin, Oscar Faber
B7.4.2 WWW links
National highway authority
Motoring organisations
Green organisations
Key cities (Dublin
http://www.dublincorp.ie/traffic/traff.htm — office of the director of traffic
Professional organisations
http://www.citi.ie/index.html (The Chartered Institute of Transport in Ireland)
4.3 Other Issues
Despite the investment programme under the 1994-1999. Transport OP the road network is still inadequate by reference to needs and EU standards. Rapid economic growth over recent years has put an even greater strain on this inadequate road infrastructure with serious congestion now a feature of parts of the network. If this congestion is not addressed promptly in a systematic fashion promptly the competitiveness of the economy will be impaired with adverse consequences for growth and employment.
Key facts;
NATIONAL REPORT - ITALY
|
Report Compiled by: |
ISIS |
|
Date |
July 27, 2001 |
|
National Organisation Responsible for Assessment of Pricing Issues
|
Organisation: Ministry of Transport Role: Elaboration of the General Transport Plan (including access restriction and road pricing) and monitoring of its enforcement Address: Piazza della Croce Rossa, 1 ROMA WWW: http://www.trasportinavigazione.it/ Organisation: Municipalities Role: Elaboration, implementation and assessment of pricing schemes |
1 Current and historic pricing activities
1.1 Tax structure for private cars
The various types of taxes for private cars are detailed below
Types of taxes for private cars
|
Tax Typology |
Charge Nature |
Tax Typology |
Charge Nature |
|
Entry |
Operation |
||
|
Drivers School Tax |
VAT |
Gasoline Excise Duty |
Manufacturing |
|
Drivers Licence Tax |
Administrative Charge |
Diesel Oil Excise Duty |
Manufacturing |
|
Vehicle Plate Tax |
Accessory Charge |
GPL Excise Duty |
Manufacturing |
|
Vehicle Stamp Tax |
Stamp Charge |
Lubricants Excise Duty |
Manufacturing |
|
Purchase Tax |
VAT |
Gasoline VAT |
VAT |
|
Registration |
Diesel Oil VAT |
VAT |
|
|
Registration Tax |
Registry Charge |
GPL VAT |
VAT |
|
Regional Registration Tax |
Local Finance |
Lubricants Excise Duty |
VAT |
|
Provincial Registration Tax |
Local Finance |
Tyre VAT |
VAT |
|
Registration Stamp Tax |
Stamp Charge |
Maintenance & Repair VAT |
VAT |
|
Property |
Highway Tolls VAT |
VAT |
|
|
Regional Vehicle Tax |
Local Finance |
Garages VAT |
VAT |
|
Annual Regional Surcharge |
Local Finance |
Parking VAT |
VAT |
|
Special Regional Tax |
Local Finance |
Transferral |
|
|
Insurance Tax |
Vehicle Transferral Tax |
Registry Charge |
1.2 Tax structure for goods vehicles
The Tax structure for goods vehicles is presented in the table below.
Types of taxes for HGVs
|
Tax Typology |
Charge Nature |
Tax Typology |
Charge Nature |
|
Entry |
Operation |
||
|
Vehicle Plate Tax |
Accessory Charge |
Gasoline Excise Duty |
Manufacturing |
|
Vehicle Stamp Tax |
Stamp Charge |
Diesel Oil Excise Duty |
Manufacturing |
|
Purchase Tax |
VAT |
GPL Excise Duty |
Manufacturing |
|
Freight Transport Licence Tax |
Administrative Charge |
Lubricants Excise Duty |
Manufacturing |
|
Registration |
Gasoline VAT |
VAT |
|
|
Registration Tax |
Registry Charge |
Diesel Oil VAT |
VAT |
|
Regional Registration Tax |
Local Finance |
GPL VAT |
VAT |
|
Provincial Registration Tax |
Local Finance |
Lubricants Excise Duty |
VAT |
|
Registration Stamp Tax |
Stamp Charge |
Tyre VAT |
VAT |
|
Property |
Maintenance & Repair VAT |
VAT |
|
|
Regional Vehicle Tax |
Local Finance |
Highway Tolls VAT |
VAT |
|
Annual Regional Surcharge |
Local Finance |
Freight Accompanying Stamp Tax |
Stamp Charge |
|
Special Regional Tax |
Local Finance |
Transferral |
|
|
Insurance Tax |
Vehicle Transferral Tax |
Registry Charge |
|
|
Trailer Transferral Tax |
Registry Charge |
||
|
Exemption |
|||
|
Gasoline Excise Duty |
|||
1.3 Ongoing examples of urban road pricing
Genoa
Within PRoGRESS Genoa will demonstrate a cordon pricing scheme aimed to protect the city central area, using video plate detection technology. The selected DA has the effect of restricting access to centre while allowing the free crossing from East and West to West, East and North. The proposed demonstration scheme discourages the use of central streets for crossing East-West (and viceversa) and also for accessing inner destinations. The presence of several parking facilities located just outside the protected area will enable people to leave their cars outside the centre. Short stay parking will be provided for shopping trips The plate number is detected and memorised by the video-OCR device at the gates and checked against a database containing exemptions and eligibility of charging. This updates the resident plate database with the time of day of passage(s) and the cumulative amount to be paid by the registered user. Benefits for the Genoa urban system and in particular in the central area are expected from the RP application in terms of reduction in congestion, car density, pollutant emission, noise levels and energy (fuel) use.
The design has been specified and the location of the six gates confirmed; the supplier has been chosen and the installation of the gates is due to begin in October once the scheme is formally approved by the Town Council.
Rome
Access Control: Road Pricing in the Broader Context of Urban Mobility Management — The Experience in Rome
Automated access control has been in operation since 11 August and full enforcement against violations will be in place by the end of the year.
Access control in Rome has experienced important developments since its inception in 1989. From manual checks, the Limited Traffic Zone (LTZ) has been equipped with an automatic access control system capable of detecting all vehicles, identifying authorised vehicles via a radio frequency link, managing lists of authorised vehicles and proceeding against infractions. It is worthwhile highlighting that the On-Board Unit (OBU) does not only allow access to the LTZ but also to parking payment and the toll road system of the Italian highway network (TELEPASS).
Technical and regulatory obstacles have been solved to allow high-level performance of the system. The transition from pilot to full-scale implementation required better integration among system components, improvements to the automatic identification of plates, safety of smart card payment, visual impact of the automatic gates, flexibility of the permit management system and respect of citizens’ privacy. From the institutional side, a clear definition of authorities’ and agencies’ roles at the local level was required. At the same time, the use of remote traffic control systems had to be regulated at the national level.
Pricing private car use in urban centres responds to policies adopted at the international level both by the European Union and the OECD1. At the national level, the Italian Ministry for the Environment has dedicated particular attention to transport externalities, although not tackling urban road pricing directly. At the local level, STA - the Mobility Agency of the City of Rome - is in charge of implementing and assessing road pricing in the framework of the EU-funded PRoGRESS project. Great care is currently being put into the dynamic model forecasting impacts of road pricing scenarios. The model can be complemented with additional modules aimed at anticipating socio-economic impacts of road pricing thus going beyond transport, as it is structured to support the city government decision-making process.
The approach adopted in the PRoGRESS project is certainly embedded in the system vision of agencies and authorities in Rome to solve the city’s mobility riddle2 by balancing transportation market distortions and internalising transport-related externalities along with the provision of attractive mobility alternatives and better accessibility to the city.
2 Projects
2.1 Details of Relevant ongoing Projects
PROGRESS, EUROPRICE
3 Legal and Institutional Issues
3.1 Current legal situation regarding urban road pricing
At the national level, road pricing is currently lacking a specific legislation. Historically, the matter was first regulated in 1959 by National Act 393/59, which assigned the power to limit parking time and/or car circulation in the area of competence to local administrations, "in order to safeguard human health, public order and environmental and cultural city heritage". Later, a set of specific measures were passed to respond to contingent needs, such as the oil crisis (‘70s) or environmental emergencies, i.e. pollutant concentration peaks related to weather conditions (‘80s). In 1989, National Act 122/89, which also made it possible to define the concept of access restriction areas (blue areas), delegated the City Councils with the duty of defining instruments to increase and regulate public as well as private parking supply.
Such an instrument was found in the Urban Traffic Plan (PUT, Piano Urbano del Traffico), intended as an "immediate feasibility plan" aimed at tackling critical urban issues. The PUT, ratified by the National Act 285/92, was to be developed according to the dispositions contained in the National Transport Plan (PGT, Piano Generale dei Trasporti). The PGT co-ordinates all interventions aimed at optimising global transport supply and regulating private vehicle circulation and restrictions, such as restricted access zones (ZTL) management and on-street paid parking. Today, the only act explicitly addressing access limitation/pricing is section 7 of the Vehicle Circulation Code which gives municipalities the power to regulate private vehicles circulation "for checked and motivated preservation and preventive measures", defined only in very general terms.
3.2 Institutional structure for road pricing
According to the legislative picture provided above, the Municipalities are directly responsible for urban road pricing policies through the PUT and PUP (Urban Parking Plan) and in compliance with the PGT.
4 Relevant documents and WWW links
References
http://www.trasportinavigazione.it/
http://www.comune.roma.it/dipVII/
http://pers.mininterno.it/codiceStrada/
Other Key Documents
Il Fisco e i Trasporti — Centro Europa Ricerche, 1996
WWW links
National highway authority
Motoring organisations
Uffici della Motorizzazione Civile (Departments of Motor Vehicles)
Green organisations
http://www.amicidellaterra.it/
Key cities
Rome, Genoa, Bologna
Professional organisations
http://www.uniontrasporti.camcom.it/ita/
Reference documents
Upcoming events of relevance
NATIONAL REPORT - LUXEMBOURG
|
Report Compiled by: |
Transport and Mobility Leuven. |
|
Date |
13th September 2001 |
|
National Organisation Responsible for Assessment of Pricing Issues (1)
|
The responsibility for assessment of pricing issues in Luxembourg is shared between the state and the city council. Organisation: State of Luxembourg Role: Address: Service information 3 rue du st.Esprit L-1475 Luxembourg Contact: Tel: +352-478 2181 Fax: +352-47 02 85 E-mail: info@sip.etat.lu WWW: http://www.etat.lu |
|
National Organisation Responsible for Assessment of Pricing Issues (2)
|
Organisation: City Council. Role: Regulation Address: Collège des bourgemestre et échevins Hôtel de ville L-2090 Luxembourg Contact: Tel: +354796-26 36 Fax: +354 22 34 65 E-mail: mosar@vdl.lu |
1 Current and historic pricing activities
1.1 Tax structure for private cars
At purchase VAT (15%) when the salesman is liable to VAT.
Taxes for ownership:
Taxes for use of the vehicle:
1.2 Tax structure for goods vehicles
For the taxes at purchase and the taxes for ownership: see tax structure for private car.
Taxes for use of the vehicle:
See above. In addition, there is a tax depending on the weight of the vehicle, the number of axles and the type of suspension. Tax can be bought for three, six or twelve months.
For example:
two axles, pneumatic (or alike) suspension with a maximum authorised masse ³ 12ton = 10,300LUF (257.5€)/year or 5,310LUF (132.75€)/6months or 2,730 (68.25€)/3months.
Other suspension, maximum authorised masse ³ 19.5ton: 12,840LUF (321€)/year or 6,620LUF (173.53€)/6months or 3,410 (85.25€)/3months.
1.3 Ongoing examples of urban road pricing
Eurovignette
The Eurovignette (See B2.1.1) applies to vehicles greater than 12 tonnes. The price depends on the number of axles, the emission of polluting gases, the country of registration and the period of validity. Charges for vehicles with EURO 0 engines are 323LUF/day, 62527LUF/year for 4 axles or more.
Pay-Parking-areas: in the city centre are run by the city council and prices from vary from 20 to 40LUF per hour.
There are five free car parks surrounding the capital which are connected with the centre by bus. In the city-centre drivers have to pay at least 20LUF.
2 Legal and Institutional Issues
2.1 Current legal situation regarding urban road pricing
The Government of Luxembourg is responsible for road pricing issues but no real progress has been made in this field
3 Relevant documents and WWW links
3.1 References
NATIONAL REPORT — THE NETHERLANDS
|
Report Compiled by: |
TNO |
|
Date |
August 2001 |
|
National Organisation Responsible for Assessment of Pricing Issues
|
Organisation: Ministry of Transport, Public Works and Water Management Role: Address: P.O. Box 20901, 2500 EX Den Haag, Contact: Tel: Fax: E-mail: WWW: www.minvenw.nl. |
1 Current and historic pricing activities
1.1 Tax structure for private cars
Although the emphasis in Dutch travel and transport policy is on the introduction of congestion charging (as it has been over the past 10 years), taxes on vehicles and fuels also form part of the price policy.
As well as a 19% VAT, there is a direct taxation on the purchase of cars (BPM) and on the possession of cars (MRB). Registration tax (BPM) is levied on all new passenger cars and motor cycles (fig. 1). It is calculated on the net list price, including profit margins, excluding VAT.
Circulation tax (MRB) is levied every year and depends on the weight of the car and the type of gasoline that is used (fig. 2). To stimulate the sales of environmental-friendly cars, a green policy rewards clean and energy-low cars with less taxation.
Indirect tax is levied on fuels and includes: excise duty, tax on stock (cova-levy) and environmental tax (fig. 3).
1.2 Tax structure for goods vehicles
For heavy good vehicles the Eurovignette-system is applicable, which means access to the motorways of Belgium, Denmark, Germany, Luxembourg, the Netherlands and Sweden is only for those who paid for it. Eventually, the Eurovignette will be replaced by the system of road pricing.
When buying a new car, there is a 45.2% registration tax and 19% VAT.
Tax structure
|
Annual taxes on possessing a car |
|||
|
à 849 kg |
850 kg à 1149 kg |
1150 kg à |
|
|
Petrol |
156 € |
410 € |
470 € |
|
Diesel |
292 € |
630 € |
686 € |
|
LPG |
471 € |
874 € |
941 € |
|
Taxes on fuels |
|||
|
Fuel * 1000 litres |
Excise |
COVA-levy |
Environmental tax |
|
Leaded petrol |
658.82 € |
4.99 € |
11.83 € |
|
Unleaded petrol |
590.35 € |
4.99 € |
11.83 € |
|
Diesel |
339.75 € |
4.99 € |
13.05 € |
2 Projects
2.1 Relevant ongoing projects
To create a direct link between driving and driving costs, in the nearby future taxes and charges will be billed on a per kilometre basis. People who drive a lot, pay more than people who drive less.
To fight congestion, there have been ideas to charge a congestion fee for driving at rush hours and/or driving in congested areas. Between October 2000 and May 2001, congestion charging became a hot political issue. The resolved method of fee collection with a small number of tollgates in selected areas in the Randstad, was confronted by a lot of opposition. This opposition was organised by several interest groups, claiming this method was not fair and that the authorities failed to supply serious alternatives for those who were obliged to travel by car at specific moments on specific roads.
During this debate there seemed to be a majority in favour of the idea that road pricing could solve the objections. In the political arena, the Minister of Transport, Public Works and Water Management withdrew the idea of tollgates due to political uncertainty on the public opinion on these measures, and made a run for a "kilometre charge".
A report of Roel Pieper, ITS-consultant and former boardmember of Philips and Compaq, a guru on technology, made the preparations for this move. Pieper claimed the possibility of introducing a kilometre charge ("Mobimiles") in 2003, which was about 7 years earlier than expected. The argument tollgates were necessary, because developing the techniques to introduce a kilometre charge lasted too long, was therefore no longer valuable.
The cabinet now proclaimed a proposal for legislation on the kilometre charge at the end of this year and declared the intention to start with the introduction of this measure in 2004. Differentiating the charge in relation to congestion, however, is planned. A political solution was found with a compromise in the form of a non-differentiating kilometre charge now, and a decision on the possibilities of differentiating the kilometre charge later.
The assumption Roel Pieper has made, is that commercial use of value added services will change all cars into "PC’s on wheels". GSM and GPS both will be integrated in this technique. And it is the same technology that enables a time- and place-related kilometre charge to be put into practise.
3 Current Legal Situation Regarding Urban Road Pricing
3.1 National Traffic and Transport Plan
The objectives of Dutch national policy on traffic and transport have recently been changed from a moralistic ‘modal shift’ to a more liberal "mobility is fun" — to quote the Dutch Minister of Transport, Public Works and Water Management, Mrs. Tineke Netelenbos. In this perspective, the choices that have been made by people and members of the business community will be respected, but the costs of these choices will be paid by the users themselves. New chances for price-policy arise.
The National Traffic and Transport Plan (NVVP), a recurring policy-document issued every 10 years, was recently presented by Mrs. Tineke Netelenbos on 16 October 2000. This first release in a formal 4-step procedure, which has been planned to be fulfilled in the early spring of 2002, is called "policy intention".
After participation of the public - the second of the formal steps - discussion took place in the council of ministers, to proclaim the third step: a standpoint from the cabinet. This standpoint NVVP was recently released on 22 May 2001. It is now up to Parliament to decide whether this policy framework will be accepted or not (the fourth step).
The NVVP signifies a shift from the 1980s and 1990s during which time policy and action had been based on the assumption that it is feasible and imperative for government to regulate the volume and direction of transport demand. The new approach accepts mobility as self-evident in today’s world. At the same time the plan notes that without policy-tuning, road traffic and transport will face congestion and will result into serious delays in 2020. Moreover, if measures will not be put into place, there will also be a halt in safety improvements and in enhanced quality of life. The newly formulated policy outlines a new perspective for traffic, transport and related infrastructure in the Netherlands up to the year 2020.
The NVVP outlines the perspectives, aims and targets on the national level. It is the responsibility of the counties and municipalities to fine-tune these perspectives on the urbanised level.
4. References
WWW Links
Motoring organisations
Bovag/Rai (autobranche), http://www.bovag.nl/default.asp;
ANWB (motorists), http://verkeer.anwb.org;
Fietsersbond (cyclists), http://www.fietsersbond.nl;
Verenigde Verkeersveiligheids Organisaties, 3VO (road users), http://www.3vo.nl.
Green organisations:
Milieudefensie, http://www.milieudefensie.nl;
Stichting natuur en Milieu, http://www.snm.nl;
Natuurmonumenten, http://www.natuurmonumenten.nl/site.
Key cities
Amsterdam : http://www.bereikbaar.amsterdam.nl
NATIONAL REPORT - NORWAY
|
Report Compiled by:TNO Terje Tretvik |
|
|
Date |
September 2001 |
|
National Organisation Responsible for Assessment of Pricing Issues
|
Organisation: SINTEF Civil and Environmental Engineering Role: Address: 7465 Trondheim, Norway Contact: Terje Tretvik Tel: +47 73 59 56 59 Fax: +47 73 59 46 56 E-mail: Terje.Tretvik@sintef.no WWW: http://www.sintef.no. |
1 Current and historic pricing activities
1.1 Tax structure for private cars
The Norwegian tax system is progressive with respect to vehicle weight, engine volume and engine power. For larger and more powerful cars, the tax component of the purchase price is significantly higher.
The annual fee is NOK 2265 for all cars.
Taxes per litre of petrol (as of 01.07.2001):
Unleaded : NOK 3,74
Lead content less than 0,05 grams/litre : NOK 3,99
Lead content more than 0,05 grams/litre : NOK 4,53
CO2 tax : NOK 0,72
1.2 Tax structure for goods vehicles
As of 2001 the tax system has been changed in line with the system for taxing within the EU.
1.3 Previous Examples of Urban Road Pricing
Trondheim was the third and latest city in Norway to introduce a toll ring in October 1991, after Bergen (1986) and Oslo (1990). The Trondheim scheme was unique in two aspects, (i) it was fully electronic with non-stop toll lanes from the start, and (ii) it had time-differentiated charges. Results from the evaluation of short-term behavioural, traffic and attitudinal impacts of the Trondheim system are published in English, e.g. Tretvik (1993) and Meland (1995). Findings from the research on the political and decision-making process have also been published, e.g. Langmyhr and Sager (1997).
The introduction of the Trondheim toll ring came after a six year long planning and decision-making process. During these years, several decisions were made concerning the principles of road pricing, the design of the cordon and the charges, the use of revenues, and the division of responsibility between different institutional levels. Fears for the future of city centre trade and social equity concerns ranked high on the political agenda, and these were factors that almost toppled the decision to go forward with the plan.
The Public Roads Administration played a major role as an innovation promoter, and a prerequisite for political acceptance seems to have been the initial co-operation between the road authorities and influential local politicians.
The aim of the scheme was primarily to raise revenue to feed an urban transport investment package. However, the differentiated charges that were introduced had a secondary demand management objective. Political preferences particularly concerned the demand management bias of the charging scheme, and the percentage of revenue earmarked for public transport, safety and environmental measures.
The planned implementation date was delayed for almost a year, due to international court proceedings through GATT about the competition for the delivery of the charging equipment. This allowed the Public Roads Administration a period of nearly two years before the tolling started, to complete some infrastructure projects in the investment package. These investments soon relieved some of the most serious congestion, and were financed mainly by the take up of loans through the toll road company.
2 Legal and Institutional Issues
2.1 Current Legal Situation Regarding Urban Road Pricing
In Norway, all road user charging require approval from local and regional bodies, and sanctioning by the Parliament. The implementation has to be initialised by local political bodies.
At the time of planning and introduction of the Trondheim toll ring, the Norwegian Road Act did not accept demand management to be the main rationale for implementation or design of road user charging projects. This is proposed to be changed in a revision.
Revenues from road user charging can be used for investments in the transport sector only.
3 Relevant Documents and WWW links
Details of the national autopass system and other links can be found at:
http://www.vegvesen.no/autopass/english/index.html
Publications
Jones, P., J. Polak, P. Vythoulkas, S. Meland, og T. Tretvik: The Trondheim TollRing: Results of a Stated Preference Study of Travellers' Responses. DRIVE Programme EURONETT Deliverable 17. 1991.
Jones, P., J. Polak, P. Vythoulkas, S. Meland, og T. Tretvik: Trondheim Toll Ring Stated Preference Study. Pilot Survey Assessment. Transport Studies Unit. Oxford University, 1990.
Langmyhr, T.: "Planning for road pricing: A multi-rationality approach", Scandinavian Housing and Planning Research Vol. 12(2), s. 73-91, 1995.
Langmyhr, T.: "Managing equity: The case of road pricing", Transport Policy Vol. 4(1), s. 25-39, 1997.
Langmyhr, T.: "Understanding innovation: The case of road pricing", Transport Reviews Vol. 19(3), s. 255-271, 1999.
Langmyhr, T.: "Learning from Road Pricing Experience: Introducing a Second-generation Road Pricing System", Planning Theory & Practice Vol. 2, No.1, 67-80, 2001.
Langmyhr, T.: "The rationality of transport investment packages", Transportation 28: 157-178, 2001.
Langmyhr, T. og T. Sager: "Implementing the improbable urban road pricing scheme", Journal of Advanced Transportation Vol. 31(2), s. 139-158, 1997.
Meland, S.: Road Pricing in Urban Areas. The Trondheim Toll Ring - Results from Panel Travel Surveys. Gaudi Project. September 1994.
Meland, S.: "Generalised and Advanced Urban Debiting Innovations. The GAUDIProject. 3." The Trondheim Toll Ring. Traffic Engineering + Control. March 1995. STF63 S95004. 6 pages.
Meland, S. og J. Polak: Development and Validation of a Toll Ring Revenue Forecasting Model. The 20th PTRC Summer Annual Meeting. University of Manchester, Institute of Science and Technology, 1992. Trondheim. SINTEF Samferdselsteknikk. 1992. STF63 S92009. 12 pages.
Meland, S. og J. Polak: User Acceptance and Market Penetration of Automatic Debiting Technology: Evidence from the Trondheim Toll Ring. The 3rd International Conference on Vehicle Navigation and Information Systems. Oslo 2-4 September 1992. Trondheim. SINTEF Samferdselsteknikk. 1992. STF63 S92010. 6 pages.
Meland, S. og J. Polak: Impact of the Trondheim Toll Ring on Travel Behaviour: Some Preliminary Findings. Proceedings of Seminar F at the 21st PTRC Summer Annual Meeting, 13-16 September 1993. University of Manchester, p. 103-115. Trondheim. SINTEF Samferdselsteknikk. 1993. STF63 S93009. 13 pages.
Polak, J. og S. Meland: An Assessment of the Effects of the Trondheim Toll Ring on Travel Behaviour and the Environment. Paper presented to the First World Congress on Applications of Transport Telematics and Intelligent Vehicle Highway Systems. Paris, December 1994.
Sager, T. : "Communicative manifestations of power relations in controversial planning: a case study". Kap. 4 i T. Sager: Communicative Planning Theory. Aldershot: Avebury. 1994.
Tretvik, T.: The Toll Road Alternative: Variations in Choice Behaviour and Values of Time. Paper presented at the 6th World Conference on Transport Research. Lyon, France 1992. Trondheim. SINTEF Samferdselsteknikk. 1992. STF63 S92001. 12 pages.
Tretvik, T.: The Trondheim Toll Ring: Applied Technology and Public Opinion. Side 69-78 i: The Use of Economic Instruments in Urban Travel Management. Editors: R.L. Frey og P.M. Langloh. Wirtschaftswissenschaftliches Zentrum der Universität Basel: 1992. Trondheim. SINTEF Samferdselsteknikk. 1992. STF63 S92007. 10 pages.
Tretvik, T.: "Inferring Variations in Values of Time from Toll Route Diversion Behaviour." Transportation Research Record No. 1395, p. 25-32. National Academy Press. Washington D.C. Trondheim. SINTEF Samferdselsteknikk. 1993. STF63 S93005. 15 pages
Tretvik, T.: The Norwegian Experience with Cordon Pricing: From Road Tolling to Road Pricing. Paper presented at the 26th International Symposium on Automotive Technology and Automation (ISATA). Aachen, Germany, September. Trondheim. SINTEF Samferdselsteknikk. 1993. STF63 S93008. 8 pages.
Tretvik, T.: "Willingness to Pay for Time Savings: The Trondheim Toll Road Experiences" s. 91-106 in : Road Pricing: Theory, Empirical Assessment and Policy. Editors: B. Johansson og L.G. Mattson. Kluwer Academic Publishers, 1995. Trondheim. SINTEF Samferdselsteknikk. 1995. STF63 S95006. 16 pages.
Tretvik, T: "Demand Management Pricing: The Trondheim Experience", p. 36-38 in Proceedings from Urban Transport Telematics Forum: Policy Objectives and Telematics Applications for Transport and The Environment. April 1997, Vienna.
Tretvik, T: "The successful use of road pricing in Trondheim, Norway". DANTE Proceedings. Jury’s Conference Centre. Bristol, June 9-10 1998. SINTEF Samferdselsteknikk. STF22 S98638. 11 pages.
Tretvik, T: "Testing a Policy of Congestion Charges on Trondheim Toll Ring Motorists.". Proceedings of Seminar C, AET, European Transport Conference, Loughborough University, September 1998. SINTEF Samferdselsteknikk. STF22 S98617. 11 pages.
Tretvik, T: The EUROPRICE Project: The Trondheim Toll Ring and the Effects on Retailing. SINTEF Civil and Environmental Engineering, September, 1999
NATIONAL REPORT - PORTUGAL
1. Current and historic activities
1.1 Tax structure for private cars
Road taxes – road licence and road haulage tax
Tax payable by owners of the following types of vehicle;
Rate
Rates of gross weight not exceeding 12 tonnes
Tax structure for private cars
|
Weight brackets(kg) |
Road licence tax(ESC) |
Road haulage tax (ESC) |
|
Up to 2 500 |
4 900 |
3 300 |
|
2 501 to 3 500 |
8 200 |
5 500 |
|
3 501 to 7 500 |
19 500 |
12 500 |
|
7 501 to 12 000 |
32 000 |
21 000 |
Exemptions from the road licence include vehicles belonging to the government, local authorities and federations, bodies of public interest and public utilities, the autonomous regions. Collection of the tax is annual. Non-resident carriers are liable to a special rate depending on the capacity, the number of days of continuous presence on Portuguese territory, the journey, the gross weight and the type of vehicle (passenger - whether for tourism or not - or goods).
Municipal tax on vehicles
Tax payable by owners of the following type of vehicle (Beneficiary = Municipalities);
Basis of assessment
The tax is based on the following factors:
Exemptions include:
Rates for Light-duty passenger and composite motor vehicles
|
Class |
Motor vehicles |
Annual tax according to the age of the vehicle (ESC) |
||||
|
Fuel used |
||||||
|
Petrol |
Other |
Electric |
Up to 6 years |
6 to 12 years |
12 to 25 years |
|
|
Cylinder capacity (cc) |
Total voltage |
First band |
Second band |
Third band |
||
|
A |
Up to 1 000 |
Up to 1 500 |
Up to 100 |
2 700 |
1 500 |
900 |
|
B |
1 001 - 1 300 |
1 501 — 2 000 |
Over 100 |
5 400 |
2 700 |
1 400 |
|
C |
1 301 - 1 750 |
2 001 — 3 000 |
- |
8 400 |
4 200 |
1 900 |
|
D |
1 751 - 2 600 |
3 000+ |
- |
21 200 |
10 200 |
4 000 |
|
E |
2 601 - 3 500 |
- |
- |
33 700 |
16 200 |
7 700 |
|
F |
Over 3 500 |
59 700 |
27 600 |
11 500 |
||
Motor vehicle tax
Tax payable by Manufacturers or importers of;
Basis of assessment
The tax is levied once and varies according to the vehicle’s cylinder capacity.
Rates are as follows;
For Light-duty passenger and composite motor vehicles
|
Cylinder capacity |
Tax (PTE per cc) |
Amount deductible (PTE) |
|
Up to 1 250 |
652 |
421 446 |
|
From 1 251 to 2 500 |
1 546 |
1 537 838 |
|
Over 2 500 |
2 275 |
3 361 538 |
For Light-duty off-road vehicles, people movers and light-duty goods vehicles derived from light-duty passenger vehicles
|
Cylinder capacity |
Tax (PTE per cc) |
Amount deductible (PTE) |
|
Up to 1 250 |
131 |
84 370 |
|
From 1 251 to 2 500 |
310 |
307 567 |
|
Over 2 500 |
456 |
672 308 |
A formula has been established for converting electric and solar-powered motors, Wankel, alcoholic and gas-fired engines in order to calculate the corrected engine capacity.
Exemptions include physically disabled civilians or members of the armed forces over 18 years of age and people with severe multiple disabilities or a physical disability of 90 % or more, regardless of their age.
Reliefs
The amount of tax due is reduced by 80 % when the vehicles are adapted to carry disabled persons. A 10 % reduction is granted on the tax payable on used motor vehicles imported more than two years after they were first registered.
Second-hand motor vehicles originating or in free circulation in the Member States of the European Union are eligible for a reduction which depends on the age of the vehicle since it was first registered:
|
Age of the vehicle (in years of use) |
% of reduction in the tax |
|
1-2 |
18 |
|
2-3 |
24 |
|
3-4 |
32 |
|
4-5 |
41 |
|
5-6 |
49 |
|
6-7 |
55 |
|
7-8 |
61 |
|
More than 8 |
67 |
2 Legal and Institutional Issues
2.1 Current legal situation regarding urban road pricing
No specific laws except those relative to parking. Regarding interurban road pricing, an important document is Decree-law 294/97, which defines the criteria used for tolling; and Decree-law 130/2000 which establishes discounts for tolling of Heavy Goods Vehicles)
3 Relevant documents and WWW links
3.1 WWW LINKS
National highway authority
www.iep.pt (highway authority)
www.dgtt.pt (gov department)
Motoring organisations
Green organisations
NATIONAL REPORT - SWEDEN
|
Report Compiled by: |
Jonas Sundberg |
|
Date |
August 2001 |
|
National Organisation Responsible for Assessment of Pricing Issues |
Two organisations are responsible. The Ministry is responsible for all legislative issues, while the National Roads Administration is responsible for all technical and implementation aspects as soon as there is a legal possibility. This is a typical example of the division of responsibilities between Ministries and quite independent authorities. Organisation: Ministry of Industry, Employment and Communication Role: Legislation and Policy Address: Näringsdepartementet, Jakobsgatan 26, S-103 33 Stockholm Contact: Gunnar Eriksson Tel: +46 8 405 1000 Fax: +46 8 405 3616 E-mail: gunnar.eriksson@industry.ministry.se WWW: www.regeringen.se Organisation: Swedish National Roads Administration Role: R&D, Implementation Address: S-781 87 Borlänge, Sweden Contact: Christer Rydmell Tel: +46 243 75000 Fax: +46 243 75555 e-mail: christer.rydmell@vv.se www: www.vv.se
|
1 Current and Historic Pricing Activities
1.1 Tax structure for private cars
Light-weight cars
The tax system does not distinguish between different kinds of car ownership. Differences apply to whether cars are light-weight or more than 3500 kg.
Light-weight cars are subject to four kinds of tax:
Car ownership has been subject to tax since 1920. In the 1970´s, a particular distance based tax was introduced for diesel vehicles, but this was replaced in 1993 by a harmonisation with tax for non-diesel vehicles, and a change of tax on diesel oil. In 1995, it was decided that vehicles of "Environmental class 1" were freed from Annual Vehicle Tax.
The Annual Vehicle Tax is based on a specific vehicle class (in Sweden referred to as "tax-class"), and a weight related tax per 100 kilo weight above the minimum weight of the class concerned. A typical annual tax for a passenger car is 140€.
The vehicle tax is approx. 100% higher for diesel cars.
Used cars are subject to 25% VAT
This tax is important as there are big differences in tax policy between European countries. In Sweden, anyone that benefits from access to a free (including fuel) or partly free (benefit from car only) car is highly taxed on this benefit. In practice, you have to drive above 60,000 km annually private to have a benefit of free fuel. The benefit of the car is strictly related to the price of the car, and in practise completely transparent to salary (thus not much benefit financially, but quite convenient!).
Sales tax on new cars was withdrawn in 1997. Sales tax remain on MC. The basic argument for removing the sales tax was in fact that the tax was considered as tax "on transactions" which worked against the renewal of the vehicle fleet. Sweden has a tradition of "old vehicles" which from an environmental perspective is not beneficial.
1.2 Tax structure for goods vehicles
The taxation of goods vehicles has been subject to a lot of changes in the last decade.
Sales tax applies to light weight lorries and buses (below 3500 kilo), with 0.8€ per kilo.
Annual vehicle tax
Currently, the vehicle tax for e.g. a 16 ton lorry vary between 250€ to 1000€, where the higher tax applies to lorries with attachments for full trailers. In addition, a 20 ton trailer is subject to a vehicle tax in the order of 1000€ per annum.
Road user fee for heavy vehicles
Since 1 January 1998, all heavy vehicle with a laden weight above 12 tonnes are subject to pay a road user fee when using specific motorways according to the Eurovignette system (See B2.1.1).
This fee is dependent on environmental class (Euro 0-3) and number of axles. It amounts to (less than) from 10€ per day to 1200 € per year.
The duty to pay road user fees only concerns the motorway network for foreign vehicles but domestic vehicles are entitled to pay this fee for the entire Swedish road network.
1.3 Previous examples of urban road pricing
The use of EFC for the purpose of managing demand for road usage has been discussed in Sweden since the end of the 1960´s, when the issue was included in the National policy on transport agreed on in 1972. It was then however concluded that no feasible technical solution to the problem was available.
No real work was however done until 1988, when a national investigation looking at the traffic situation in the "metropolitan areas" proposed the introduction of road user charges as a means of managing demands and raising funds for road investments. The investigation also ended up with a first proposal for legislation, which was based on the assumption that road user charges could be regarded as fees rather than taxes.
This investigation was followed by the development of very big "transport-packages" for the cities of Göteborg and Stockholm. These packages included investments in public transport and road infrastructure, partly financed by road user charges. Political agreement on these measures were reached in 1991 when the development could start. The initial plan included the opening of the Stockholm toll system in September 1996.
A new national investigation "The road user charges investigation" was started in 1994 to finally propose a legislation allowing for the implementation of road tolls in Stockholm and Gothenburg. This investigation concludes that a road user charge that on an existing road network must be regarded as a tax, in opposition to the previous investigation.
This caused serious opposition in the cities concerned, since a tax must be settled by the Parliament and administered by a governmental authority. The cities could thus not decide on fee levels or even on how to use the funds raised.
This was one of the reasons behind why the road toll schemes in Stockholm and Gothenburg was turned down. Other important reasons were the growing opposition against the huge infrastructure investments planned and the lack of flexibility of the toll collection system planned. An alternative solution with the aim of demand management, rather than collecting funds, was proposed by the opposition which gained political support.
A landmark was established in 1997, when the national investigation for a new transport policy (KomKom) proposed a distance based road user fee for the larger cities as an alternative to the traditional toll schemes proposed (i.e. the Dennis package in Stockholm and the Gothenburg agreement in Gothenburg). This proposal, very much supported by the current Minister of Transport, has been seen as a major reason behind the cancellation of the Dennis package road tolls — it was concluded to be "far more interesting". A particular national investigation dedicated for road pricing was then initiated, and resulted in a draft proposal for legislation to allow for the introduction of road pricing in Sweden.
1.4 Ongoing examples of urban road pricing
Besides the participation in the PROGRESS Gothenburg field trial, no other initiative is ongoing in Sweden.
1.5 Future commitments to urban road pricing
As can be understood from the historic review above, there is a strong awareness of the possibilities of road pricing and political interest in the issue.
The Minister of Industry recently (May 2000 and June 2001) declared that all legal obstacles shall be overcome to allow for the introduction of Road Pricing. Also the newly appointed General Director of the Swedish National Road Administration has declared (August 2001) that congestion pricing (re-named to access pricing, since it sounds more positive) has to be introduced as one of several methods to manage transport demand in larger cities. He referred to civil aviation, his previous field of work, where such measures are quite natural.
A major problem is that this commitment is a property of the central ministries and authorities, while a more reluctant attitude can be seen among the city officials, for good reasons. The first reason is that the current proposed legislation regards road pricing as a tax under complete parliament control (see below under legal issues). The second argument being that if funds are raised locally, there is a considerable risk that the cities share of governmental funding will be lowered. The cities require a guarantee on governmental support, before they are willing to commit to any local pricing scheme.
Beside the specific aspect of fund control, public officials in the cities of Stockholm and Gothenburg are convinced about the advantages of road pricing, and positive that it will be introduced. A recent unofficial survey on expected time horizon showed that the expected time to deployment was 5-10 years in this group. This would change radically if another city "close enough" (e.g. Copenhagen) would introduce road pricing
2 Projects
2.1 Details of Relevant ongoing projects
MÅNS
In parallel to studies of user attitudes and expectations carried out in PROGRESS, the MÅNS project and its successors deal with the legislative and authority aspects of pricing schemes. The focus is on system interoperability: If and when road pricing is put into operation, it must be interoperable with other relevant schemes not only technically but also in administrative matters. The responsible ministries and authorities in Sweden, Finland, Denmark and Norway are working on a global interoperability agreement covering all aspects of road user charging.
In February 2001, all specifications to be included in a MoU for interoperability were finalised and
the authorities are now preparing the agreement to be entered.
PRoGRESS
The Swedish PRoGRESS field trial is a cornerstone in the Swedish preparations for road pricing deployment. The project will learn about user attitudes and effects, and it is also an advanced demonstration of precisely the kind of system that was envisaged in the National investigation for a new transport policy (KomKom) in 1997.
The PRoGRESS field trial in Sweden has also turned out to be a meeting place for interested parties (e.g. environmentalists, cities, governmental authorities and ministries) in the area of road pricing.
The Singapore-tour
City officials and politicians from Stockholm together with researchers made a thorough study tour to the Singapore ERP system in November 2000. This tour has resulted in a number of workshops carried out during spring 2001, and the establishment of an informal study group on road pricing within the city of Stockholm administration.
3 Legal and institutional issues
3.1 Current legal situation regarding urban road pricing
Since the National Investigation on Road Tolls in 1994 concluded that road user charging applied to existing public roads should be considered as a tax (with the argument that a fee requires an obvious service in return), a new situation arose.
Following the closing down of the Dennis agreement in 1997, including the plans for the Stockholm Toll Collection System, and the National Investigation on a New Transport Policy (KomKom), it was found that the legislation prepared for the Toll Ring solution was obsolete.
Thus, in 1998 the Government initiated a new investigation with the specific aim of preparing a legislation that allowed for a road user charge applied for environmental purposes (i.e. demand management). The results were subject to an extensive hearing process, but no final result or proposal for legislation has been put forward by the government. This is for obvious reasons: All previously prepared legislation have become obsolete due to major changes in the fee collection solution. Thus the government has now decided to hold back propositions for legislation until it can be applied to specific cases.
The rationale behind this follows the definition of road user charges on existing roads as a tax. Following from the constitution only the government can raise taxes, and the right cannot be delegated (although there are of course exemptions). This means that every implementation (i.e. every site) of road pricing has to be subject to a specific law following a decision in the parliament. In theory, every change of fee has also to be subject to a decision in the parliament.
The current "sleeping" proposal
Although not turned into legislation, the result from the 1998 investigation give a good understanding of what a law on implementation of road pricing could look like:
Fee collection system
The Swedish National Road Administration (SNRA) is appointed as supervising authority giving concessions for implementation of systems for fee collection. This means that SNRA in practise will have the right to decide on technical solutions etc., and is responsible to maintain a certain level of know-how etc. SNRA is also the controlling authority after implementation.
Fee level
The tariffs may be proposed by the local (city) authorities, but are subject to be accepted by the national parliament. To avoid a multitude of decisions, tariffs may include intervals (!) and also principles for automatic raising according to specific consumer-price index.
Use of funds raised
The use of the funds raised should be defined in the parliamentary decision taken for each implementation, but some basic rules apply:
All in all, it was concluded that up to 50% of the collected money could end up in the governments budget which met quite a lot local opposition.
Tax-deduction
The road user charge paid should not be eligible for tax deduction in personal taxes, but accepted as an operational cost in enterprises (a quite strange proposal which also met a lot of opposition).
B13.3.2 Institutional structure for road pricing
The (expected) institutional structure follows from the description above:
They are continuously supervised by SNRA
4 Relevant documents or WWW links
4.1 References
DS 1992:44 Trafikavgifter på Samhällsekonomiska villkor (Transport fees on socio-economic conditions)
Vägavgiftsutredningen, SNRA 1989 (Investigation on Road User Charges)
SOU 1996:186 Transportinformatik för Sverige (Transport telematics for Sweden)
Effekter av vägavgifter, Transek 1996 (An assessment of road tolls and road pricing in the Stockholm region)
Differentiated taxation of Road Transport, VBB VIAK 1997
MÅNS — Nordic co-operation on interoperable road user charges, SNRA 2001
4.2 WWW links
Swedish National Roads Administration www.vv.se
SNF - Swedish Environmentalists Association www.snf.se
SNF Proposal for Road Pricing in Gothenburg www.goteborg.snf.se
SNF Proposal for Road Pricing in Stockholm www.stockholm.snf.se
Swedish Association of Green motorists www.gronabilister.com
The Swedish Motorists Association www.motormannen.se
City of Stockholm www.stockholm.se
City of Gothenburg www.goteborg.se
NATIONAL REPORT - SWITZERLAND
|
State |
Switzerland |
|
Report Compiled by: |
ECOPLAN, CH-3005 Bern http://www.ecoplan.ch |
|
Date |
30 August 2001 |
|
National Organisation Responsible for Assessment of Pricing Issues
|
Organisation: Swiss Federal Department for Environment, Transport, Energy and Communication Role: Responsible Ministry Address: Bundesamt für Raumentwicklung (Federal Office for Spatial Development) Bundeshaus Nord CH-3003 Bern Contact: Mr Ueli Balmer Tel: 41 31 322 40 60 Fax: 41 31 322 78 69, E-mail: ueli.balmer@are.admin.ch WWW: http://www.are.admin.ch Address: Bundesamt für Strassen (Federal Office for Roads) 3003 Bern Contact: Mr Andreas Gantenbein Tel: 41 31 322 94 11 Fax: Fax +41 31 323 23 03, E-mail: andreas.gantenbein@astra.admin.ch WWW: http://www.astra.admin.ch |
1 Current and historic pricing activities
Introductory remarks
All amounts are given in Euro (€).
In accordance with its federal system, the competence for taxation of car transport is shared between the different state levels within Switzerland:
Import duties, fuel taxes and road user charges are the responsibility of the national level.
Vehicle taxes are levied through the 26 Cantons.
Finally, it is for the local authorities (i.e. municipalities) to introduce parking fees.
Therefore, a large variety of fees, charges and taxes can be found throughout Switzerland.
There are no sales taxes for new cars. The VAT on the sale value has the same rate as for other commodities. The same applies to import duties.
1.1 Tax structure for private cars
The Cantons levy an annual vehicle tax either based on the weight of the vehicle, its cubic capacity, an engine power index or combinations of the three criteria.
An overview of the level of the annual car taxes in Switzerland is given in the table below. Each canton has a different level of tax which is dependent upon cubic capacity, weight and engine power index.
|
Source: 'The tax burden in Switzerland', BFS Public Finances (18) - 1998 |
|||||||||||||||
|
passenger cars |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
cubic capacity |
400 |
600 |
800 |
1000 |
1200 |
1400 |
1600 |
1800 |
2000 |
2200 |
2400 |
2600 |
2800 |
3000 |
3500 |
|
Engine power index |
2.04 |
3.06 |
4.08 |
5.1 |
6.12 |
7.13 |
8.15 |
9.17 |
10.19 |
11.21 |
12.23 |
13.25 |
14.26 |
15.28 |
17.83 |
|
total weight |
588 |
854 |
1042 |
1188 |
1307 |
1408 |
1495 |
1572 |
1641 |
1703 |
1760 |
1813 |
1861 |
1906 |
2007 |
|
Zürich |
132 |
132 |
132 |
153 |
174 |
196 |
217 |
239 |
260 |
282 |
303 |
324 |
345 |
367 |
420 |
|
Bern |
139 |
202 |
245 |
275 |
299 |
320 |
338 |
353 |
367 |
380 |
391 |
403 |
413 |
421 |
441 |
|
Luzern |
136 |
146 |
157 |
182 |
193 |
203 |
232 |
243 |
256 |
274 |
292 |
311 |
330 |
347 |
451 |
|
Uri |
105 |
105 |
118 |
132 |
145 |
158 |
171 |
184 |
200 |
216 |
232 |
247 |
263 |
279 |
318 |
|
Schwyz |
128 |
128 |
128 |
145 |
162 |
179 |
195 |
213 |
229 |
249 |
268 |
288 |
308 |
328 |
387 |
|
Obwalden |
108 |
108 |
108 |
122 |
137 |
151 |
166 |
180 |
195 |
209 |
224 |
238 |
253 |
267 |
303 |
|
Nidwalden |
109 |
109 |
109 |
128 |
145 |
164 |
182 |
200 |
218 |
236 |
255 |
272 |
291 |
309 |
355 |
|
Glarus |
145 |
145 |
145 |
156 |
178 |
201 |
223 |
245 |
268 |
290 |
313 |
335 |
359 |
384 |
446 |
|
Zug |
96 |
111 |
126 |
141 |
157 |
172 |
187 |
202 |
217 |
232 |
247 |
263 |
278 |
293 |
331 |
|
Fribourg |
133 |
153 |
172 |
191 |
210 |
224 |
239 |
253 |
267 |
282 |
296 |
311 |
324 |
343 |
401 |
|
Solothurn |
114 |
114 |
136 |
151 |
166 |
182 |
201 |
221 |
241 |
261 |
280 |
300 |
320 |
339 |
389 |
|
Basel-Stadt |
53 |
79 |
105 |
132 |
158 |
184 |
211 |
237 |
257 |
276 |
296 |
316 |
336 |
355 |
414 |
|
Basel-Land |
103 |
149 |
182 |
207 |
228 |
245 |
261 |
274 |
286 |
297 |
307 |
316 |
324 |
332 |
349 |
|
Schaffhausen |
79 |
79 |
79 |
95 |
111 |
126 |
142 |
158 |
174 |
189 |
205 |
221 |
237 |
253 |
292 |
|
Appenzell AR |
184 |
184 |
184 |
184 |
204 |
224 |
259 |
279 |
299 |
337 |
358 |
379 |
400 |
421 |
474 |
|
Appenzell IR |
132 |
132 |
141 |
169 |
193 |
213 |
230 |
246 |
260 |
272 |
282 |
293 |
303 |
311 |
331 |
|
St. Gallen |
105 |
152 |
184 |
207 |
226 |
241 |
255 |
267 |
278 |
288 |
297 |
305 |
313 |
319 |
335 |
|
Graubünden |
205 |
205 |
218 |
218 |
250 |
281 |
313 |
344 |
375 |
407 |
438 |
469 |
501 |
532 |
626 |
|
Aargau |
118 |
118 |
118 |
118 |
134 |
150 |
166 |
182 |
197 |
213 |
229 |
245 |
261 |
276 |
324 |
|
Thurgau |
63 |
79 |
95 |
111 |
126 |
142 |
158 |
174 |
189 |
205 |
221 |
237 |
253 |
268 |
316 |
|
Ticino |
104 |
115 |
129 |
145 |
162 |
180 |
198 |
216 |
236 |
254 |
272 |
291 |
309 |
326 |
368 |
|
Vaud |
173 |
173 |
173 |
201 |
228 |
256 |
284 |
311 |
339 |
366 |
394 |
422 |
449 |
477 |
546 |
|
Valais |
82 |
82 |
82 |
82 |
95 |
109 |
122 |
135 |
145 |
155 |
164 |
174 |
184 |
194 |
224 |
|
Neuenburg |
152 |
152 |
152 |
152 |
172 |
193 |
214 |
234 |
255 |
275 |
295 |
316 |
337 |
357 |
438 |
|
Genève |
106 |
106 |
106 |
106 |
121 |
136 |
151 |
166 |
182 |
197 |
212 |
231 |
249 |
268 |
324 |
|
Jura |
119 |
172 |
209 |
235 |
255 |
273 |
288 |
301 |
313 |
324 |
334 |
343 |
351 |
359 |
377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average |
120 |
132 |
144 |
159 |
178 |
196 |
215 |
233 |
250 |
268 |
285 |
302 |
319 |
336 |
384 |
|
Minimum |
53 |
79 |
79 |
82 |
95 |
109 |
122 |
135 |
145 |
155 |
164 |
174 |
184 |
194 |
224 |
|
Maximium |
205 |
205 |
245 |
275 |
299 |
320 |
338 |
353 |
375 |
407 |
438 |
469 |
501 |
532 |
626 |
Some Cantons granted tax allowances for cars equipped with catalytic converters to promote the use of these cleaner vehicles. Today, every car imported to Switzerland must be equipped with this emission abatement technology.
Vehicles up to a total weight of 3.5 tonnes are obliged to buy a motorway vignette if they use the Swiss motorway network. At the moment, the price of the vignette is € 26, with a validity of one calendar year. An increase of the motorway vignette price can be expected in the medium term.
1.2 Tax structure for goods vehicles
As for cars, Cantons levy an annual vehicle tax.
The Heavy Vehicle Fee (HVF) applies to all vehicles with a permitted total weight of more than 3.5 tons. The new distance-dependent fee entered into force on 1 January 2001 and replaced the former flat rate heavy vehicle fee.
The charge may only be levied to the extent to which heavy goods traffic creates public costs that are not already covered by other contributions or charges. In the HVF law of 19th December 1997 it is specified what is meant by these uncovered costs, namely the uncovered infrastructure costs and the balance of external costs of heavy vehicle traffic over the external benefits.
The calculation of the fee is based on three parameters:
According to the HVF law, the tax rate cannot be lower than €0.39 and not higher than €1.97 per metric ton and 100 km travelled (t*100km).
In the period from 2001 to 2004 the following tax rates apply (per t*100km):
Level 1 (EURO 0) € 1.32
Level 2 (EURO I) € 1.11
Level 3 (EURO II/III) € 0.93
The fee will further increase in the year 2005 and reach its final average level of €1.81 per t*100km as soon as Switzerland opens the first of the two rail base tunnels through the Alps. With this clause, it is ensured that Switzerland offers an attractive rail alternative for transalpine road freight transport facing the high HVF.
Coaches still pay a flat rate tax. The yearly rates are the following: €1052 for vehicles between 3.5 and 8.5 tons; €1580 for vehicles between 8.5 and 18 tons, €2105 for vehicles over 18 tons.
The HVF is collected with the help of sophisticated on-board units (OBU), employing tachograph, DSRC, chipcard, GPS, and various sensor technologies. Electronic data transfer for payment is integrated as well. The installation of OBUs is mandatory for all heavy vehicles registered in Switzerland. For foreign trucks that do not wish to install an OBU, a manual system is offered.
An important reason why the HVF is explicitly founded on external cost and benefit figures is the fact that the assessment of the environmental and accident costs of transport has a rather long tradition in Switzerland. The monetary valuation of the adverse effects of road transport on the environment and human health has been subject of different projects within National Research Programmes, but also in studies commissioned by the Federal Department of Environment, Transport, Energy and Communication. Thus, scientifically well-founded arguments justifying an adjustment and an increase in taxation of heavy vehicle traffic were available in Switzerland. The level of the HVF has originally been derived from estimates of total external costs on the one hand, and the total annual transport performance of heavy vehicles on the other hand. Compared to existing taxes and charges in the European countries, the level of the HVF is considerably high and a substantial increase of the costs of road freight transport can be expected. However, this cost increase is lowered by the fact that Switzerland will abandon the existing 28t weight limit for heavy goods vehicles and introduce stepwise a weight limit of 40t. In ECOPLAN (1999), the impacts of the fee and of the increase of the maximum weight of heavy vehicles on productivity and costs have been analysed in detail. For the different types of freight traffic the following conclusions are drawn:
The revenues from the HVF will considerably contribute to the financing of the major infrastructure projects in public transport (RAIL 2000, New trans-Alpine Rail Link), the connection of Eastern and Western Switzerland to the European high-speed rail network and noise reduction measures on the Swiss railways). All these measures aim at making rail transport faster, more convenient and therefore more attractive compared to road transport, which is to help shifting transport from road to rail.
Fuel taxes
The following fuel charges are levied in Switzerland:
Fuel taxes in € per litre (1998)
|
Diesel |
|||||
|
Taxes |
0.47 |
0.53 |
0.49 |
||
|
VAT 7.5% |
0.046 |
0.053 |
0.045 |
||
|
CARBURA() |
0.01 |
0.01 |
0.007 |
||
|
Total |
0.53 |
0.59 |
0.54 |
||
|
Price at the fuel station |
0.75 |
0.82 |
0.79 |
||
|
Part of taxes |
71% |
72% |
68% |
||
1.3 Previous examples of urban road pricing
There are no previous examples of urban road pricing in Switzerland.
1.4 Ongoing examples of urban road pricing
There are no ongoing examples of urban road pricing. However, the discussion about the introduction of this transport policy instrument is ongoing due to different reasons.
A comprehensive study carried out within the Swiss National Research Programme 41 Transport and Environment - Interactions Switzerland / Europe analysed in detail the possibilities, acceptance and effects of road pricing in Switzerland (Güller et al., 2000). Within this project the authors made different proposals for the introduction of road pricing in the urban areas of Zurich and Bern, as well as long-term solutions for the whole country:
Regional charges and/or lake tunnel toll system in Zurich
For Zurich, the authors suggest two different concepts of road pricing. Each of them, however, contains elements of balancing of interests, or the potential for reducing political differences.
Area access charges represent a further development of already accepted systems for car parking management and the current state of developments of access contingency for larger areas. At the next stage, access fees for areas with large traffic volumes could follow, primarily in suburban belts (airport, shopping centres), as especially the first belt of Zurich’s conurbation presents the most severe traffic problems. Depending on the type of access road, competence for this type of measure is with the communes or the canton.
A toll tunnel under Lake Zurich could be feasible through the involvement of a private investor/operator, providing major relief for the inner city and — as part of the Southern Ring Road — for travelling round the actually overcrowded northern periphery of Zurich. However, this would require strict regulation by the authorities with regard to traffic management and integration into the cityscape. Integration problems are caused by adjacent areas on the lakeshore in particular, but less so in more distant parts of the conurbation where the Southern Ring Road could be integrated into the existing national road network.
Considerable costs associated with such quality assurance and, therefore, with the political feasibility of the project proper, could be covered by charges in addition to the basic value of normal financing for highways (so called quality pricing).
Also of major political importance are the accompanying measures concerning inner city traffic and the design of road space.
1.5 Future commitments to urban road pricing
The are no concrete future commitments to the introduction of urban road pricing in Switzerland but the policy traffic management context is favourable to its introduction as illustrated by the example of Bern.
The 1995 Traffic Concept of the city of Bern
In 1995 the government of the city of Berne passed the Räumliches Stadtentwicklungskonzept Bern 1995 (Spatial town development concept). This concept comprises a „Siedlungskonzept 1995 (Urban Planning Concept) and a Verkehrskonzept 1995 (Traffic Concept). The traffic concept includes objectives and measures for every mode of transport and differentiates between infrastructure and traffic management. The main objectives of the Traffic Concept 1995 (TC 95) are as follows:
to improve the quality of life and environment
to keep intact the operational functionality of the transport system
to increase safety and thriftiness
to maintain urbanity
Starting from these general goals specific objectives for public transport motorised private road transport (including parking), bicycle and walking policies were formulated. The objectives for motorised road transport are:
Define a road network which is structured hierarchically and assign a traffic regime in order to reduce motorised road traffic
Introduce an integral traffic management system in order to influence road traffic
Get the traffic more steady in order to reduce air pollution and energy use
2 Projects
2.1 Details of relevant ongoing projects
Although there are no urban road pricing initiatives akin to those in the CUPID project, there are some interesting related schemes.
Area licensing in Bern — expandable to multi-zone pricing
In Bern, road pricing has been put on the political agenda of the city’s official transport planning concept in 1995, as one of several future measures. In view of the problematic situation, however, the city administration is under no immediate pressure.
The present research project suggests a phased introduction of road pricing, beginning with simple area licensing, and (depending on the progress with collection technology) followed by the development of zone pricing with participation of suburban communities. In addition, and in the form of a package of measures, a targeted development of road and public transport infrastructure is suggested, provided that the demand, if established, can be satisfied in an economic way. This development, as well as anti-noise measures alongside heavily polluted roads, the support of non-motorized traffic, and improvements to the environment of the old town and residential areas, would be financed from road pricing revenue. The authors also suggest the use of one third of the revenue for reducing general taxation. Such area licensing would be suitable for the inner city (and in particular for inner-city through traffic), and would enable distinction between peak and low volume periods. If practical, the city and its neighbouring communities could be segmented into a central and a non-central part. For practical reasons, any further differentiation would not be possible. Such a system would be based on self-declaration, and could be monitored by random checks with the option of imposing monetary penalties.
Long-term solutions for Switzerland
In the long term, the introduction of kilometre-based road pricing should be investigated with charges being orientated towards marginal social costs as far as possible. This would not only result in a time differentiation of charge levels, but also the differentiation by emission categories. At present it is not possible (and not necessary) to determine whether such a road pricing system should be introduced. More comprehensive answers can only be found through detailed studies of its effectiveness and initial policy probing, and these answers will certainly depend on the development of electronic collection systems in the years to come.
From today’s viewpoint, the following conditions should be fulfilled for such a road pricing system:
Furthermore, it needs to be clarified whether road pricing should be extended to highways within and outside the city, and investigations should be carried out to establish whether car-parking management could and should be integrated into the road pricing collection system. In any case, the next steps should be co-ordinated with the European Union’s relevant technology-oriented work, with the work on the road telematics master plan in Switzerland, and with the government’s replies to the recent AVANTI (highway network extension) initiative.
In the cities of Geneva and Rapperswil, the local governments intended to implement road pricing systems for roads crossing lakes while the same system was planned in the city of Berne for an underground road tunnel. All three projects have been abandoned due to negative results of corresponding referendums.
In Saas Fee, a well-known ski-resort in Switzerland where only electric vehicles are admitted, it was planned to introduce user charges in 1999. It was intended to introduce an electronic system charging all vehicles running from 9:00 to 11: 00 a.m. and from 03:00 to 05:00 p.m. respectively during the winter season, and from 3:00 to 5:00 p.m. throughout summer. A basic charge of about €1 should have been imposed when passing the first of altogether 16 electronic checkpoints and another € 0.33 are due when passing further points. If the time between two checkpoints exceeded 20 minutes, the basic fee would have been imposed again. According to this system, the crossing of the whole village would be charged with approximately €3.3. The introduction failed because of legal restrictions (see section B14.3.1 Current legal situation below).
Finally, the Expert Group on Financing Urban Transport headed by a Member of the Swiss Parliament presented in summer 2001 propositions for new financing schemes for transport infrastructure. In this context, road pricing was brought into discussion by the Swiss Minister for Economic Affairs as alternative instrument to the increase of the fuel tax proposed by the Expert Group.
Additionally, the offer of public and private parking spaces will be restricted locally and a parking fee strategy is followed in order to promote switching to public transport and bicycle. The postulated traffic management system includes the introduction of an urban road pricing scheme, which is announced to be introduced in the long term. We will therefore summarise the objectives, the reasons behind and the measures of this planned traffic management system.
Objectives: Introduction of an integral traffic management system in order to avoid, shift and guide the traffic.
Reasons behind: The future transport policy of Berne is characterised by the implementation of the federal environmental legislation (mainly the Federal Clean Air Ordinance and the Federal Noise Protection Ordinance). The capacity of the road network of the city of Berne is built. Only a few capacity extensions are expected for the future. Taking this situation, the feasibility question must be asked: How can the still increasing traffic volumes be managed in a way to reduce the negative effects on environment and urbanity on the one side and on the other side to still secure a safe and economical transport system? For the Bernese traffic planners the answer is the implementation of an integral traffic management system (TMS). With the TMS the traffic should be measured out at the city limits, residential areas have to be protected from foreign commuters, traffic flow on the basis network should be maintained and parking spaces in the pedestrian areas of the CBD have to be shifted to car parks on the outskirts of the CBD.
Measures:
Extend the traffic control system on the whole basis road network and give priority to public transport over private motorised traffic.
Introduce a parking guiding system.
Introduce a system of entry gates in order to optimise the network capacity management.
Realise step by step a traffic management system on the motorways around and through Berne.
Introduce a road pricing system. This road pricing system should be able to levy fees differentiated according to area, road and level of congestion.
Conclusions: The government of Berne recently has founded his transport policy on a new and integrated planning concept. Thereby, this traffic concept stipulates the introduction of a road pricing scheme, however without giving a time schedule and milestones for the implementation of this urban road pricing scheme. Not surprisingly, this strategic goal has not been put in concrete terms until now. Available is only a comprehensive study describing the possibilities and the likely impacts of a combined system of road user and parking charges (Ecoplan, 1997).
3 Legal and Institutional Issues
3.1 Current legal situation regarding urban road pricing
Article 82 of the Swiss Federal Constitution states that traffic on roads that are open to public use may not be charged with fees. This rule applies to both Federal and Cantonal levels. The national parliament, however, can provide permits in special cases (tolls on the San Bernardino alpine tunnel have been such a case).
In principle, road pricing would require a special mention in the Federal Constitution, in analogy to the articles regarding Highway Vignettes and the Heavy Vehicle Charge mentioned above. There would also be a need for a Federal Law, in the sense of a global legal framework. It is possible that the Cantons could then develop their own rules and regulations.
One possibility to back road pricing with a legal act is the constitutional article on the protection of the environment. Human beings and their natural environment should - according to that article - be protected against nuisances, especially noise and air pollution. Preliminary legal studies show that road pricing would not violate constitutional rights such as the protection of privacy (if the pricing technology is done in a pertinent way), the freedom of trade and property rights.
Although this topic is being discussed at the moment, the New Financial Compensation System is not likely to enter into force before 2006. Therefore, it is impossible to give a reliable policy forecast now.
3.2 Institutional structure for road pricing
It's to early to draw a picture of a possible institutional structure of road pricing in Switzerland. Taking into account the strong federalism in Switzerland one can assume that there would be a share of tasks between the national government, the Cantons and the local authorities. It would be necessary that the different municipalities forming an urban area work closer together, e.g. by constituting special common bodies for transport purposes.
Federal states usually have a system of financial compensation by which economically weak regions are being supported by richer regions and the central government. This system is currently under revision in Switzerland. At the same time, the share of competencies between the Confederation and the Cantons is subject to debate, too.
One proposed change would lead to an almost total withdrawal of the Confederation from financing public transport infrastructure and operation costs in big urban areas (conurbations). Consequently, the concerned municipalities should be compensated by getting the possibility to introduce road pricing within the conurbation, which would make a change of the constitutional law indispensable. This is an unusual approach, since all over Europe, road pricing is an instrument to finance the building and maintaining road infrastructure. However, in this model, road pricing would first of all generate funds for public transport needs.
4 Relevant documents and WWW links
4.1 References
Bureau for Transport Studies (2000): Fair and efficient. The Distance-related Heavy Vehicle Fee (HVF) in Switzerland.
Ecoplan (1997): Kombiniertes Road Pricing- / Parkplatzabgaben-System für die Stadt Bern, Projekt im Rahmen des europäischen Forschungsprogramms COST 616 / CITAIR, Hrsg.: Bundesamt für Umwelt, Wald und Landschaft (BUWAL), Umwelt-Materialien Nr. 87, Luft, Bern.
Federal Customs Administration (2000): HVF — in concrete terms. Background — Fees — Recommendations — Alternatives.
Güller P, Neuenschwander R, Rapp M and Maibach M (2000): Road Pricing in der Schweiz, Akzeptanz und Machbarkeit möglicher Ansätze im Spiegel von Umfragen und internationaler Erfahrung, Bericht D11 des Nationalen Forschungsprogramms 41 "Verkehr und Umwelt, Wechselwirkungen Schweiz - Europa", Bern.
4.2 WWW links
National authorities
Swiss Federal Department of the Environment, Transport, Energy and Communications
Federal Roads Office http://www.astra.admin.ch
Federal Office for Spatial Development http://www.are.admin.ch
Federal Office of Transport http://www.bav.admin.ch
Federal Customs Administration http://www.zoll.admin.ch
Motoring organisations
Swiss lobby organisation of the Swiss trucking, bus and taxi operators http://www.astag.ch
Swiss umbrella organisation of road transport industry and private road users http://www.strassenverkehrsverband.ch
Green organisations
Association for Transport and Environment http://www.vcs-ate.ch
Swiss Green Party http://www.gruene.ch
Alpine Initiative http://www.alpeninitiative.ch
Key cities
City of Berne http://www.bern.ch
City of Zurich http://www.stadt-zuerich.ch
Research
National Research Programme http://www.nfp41.ch
NATIONAL REPORT - UNITED KINGDOM
Responsibility for pricing issues in the UK is devolved to the parliaments/assemblies of Scotland, Northern Ireland and Wales. The British government is responsible for pricing in England.
|
Report Compiled by: |
Ian Bewick |
|
Date |
July 2001 |
|
National Organisation Responsible for Assessment of Pricing Issues in England |
Organisation: DTLR (formerly DETR) Role: Address: Great Minster House 76 Marsham Street London SW1P 4DR Contact: Mike Goodwin. Tel: 0207 944 6106 Fax: 0207 944 2196 E-mail: mike.goodwin@dtlr.gsi.gov.uk WWW: www.detr.gov.uk |
|
National Organisation Responsible for Assessment of Pricing Issues in Scotland |
Organisation: The Scottish Executive Role: Address: The Office of the First Minister Contact:. Tel: 44 (0)131 556 8400 Fax: 44 (0)131 244 8240 E-mail: scottish.ministers@scotland.gov.uk WWW: www.scotland.gov.uk |
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National Organisation Responsible for Assessment of Pricing Issues in Northern Ireland |
Organisation: Transport (Policy and Support) Division Role: Address: Transport (Policy and Support) Division Contact:. Tel: (028 90251300) Fax: (028 90257333) E-mail: tpsd@nics.gov.uk WWW: http://www.nics.gov.uk/transport
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National Organisation Responsible for Assessment of Pricing Issues in Wales |
Organisation: National Assembly for Wales Role: Address: National Assembly for Wales Cardiff Bay Cardiff CF99 1NA Tel: 029 20 825111 http://www.wales.gov.uk/subitransport/content/policy/framework/index.htm |
1 Current and historic pricing activities
1.1 Tax structure for private cars
Registration;
A fee of £25 is payable on the first registration and licensing of a motor vehicle in the United Kingdom.
The fee is designed to cover the administrative costs associated with registration of the vehicle throughout its life and is applicable to all vehicles except those in the "Disabled Exempt" taxation class.
Vehicle Excise Duty (vehicles registered before 1st March 2001)
Private/light goods vehicles (light vans, cars, taxis etc) under 1549CC = £105 per year (£57.75 for 6 months)
over 1549CC = £160 per year (£88 for 6 months)
For vehicles registered after the 1st March 2001, the rate of car tax is based on level of vehicle emissions. Vehicles are categorised into four bands according to the level of CO2 emissions measured in grams per kilometre. The bands are as follows;
UK car taxes
|
Diesel car |
Petrol car |
Alternative fuel car |
|||||
|
Band |
CO2 Emission figure (g/km) |
12 months rate (6monthly rate in brackets) |
12 months rate (6monthly rate in brackets) |
12 months rate (6monthly rate in brackets) |
|||
|
A |
UP to 150 |
£110 |
(£60.50) |
£100 |
(£55) |
£90 |
(£49.50) |
|
B |
151-165 |
£130 |
(£71.50) |
£120 |
(£66) |
£110 |
(£60.50) |
|
C |
166-185 |
£150 |
(£82.50) |
£140 |
(£77) |
£130 |
(£71.50) |
|
D |
Over 185 |
£160 |
(£88.00) |
£155 |
(£85.25) |
£150 |
(382.50) |
1.2 Tax structure for goods vehicles:
Vehicle Excise duty for light goods vehicles (not over 3,500 Kg) = £160 for 12 months or £88 for 6 months.
General Haulage vehicles;
12 months rate = £350 (6months (£192.50). For reduced pollution vehicles the rate is £160 per year or £88 for 6 months.
For private HGV vehicles the rate is £165 per 12 months or £90.75 for 6 months.
For rigid and Articulated goods vehicles with a maximum weight of over 3500KG but less than 7500KG, the 12 month rate is £165 or £90.75 for 6 months. For reduced pollution vehicles within this category the rates are £160 per 12 months or £88 for 6 months
1.3 Previous examples of urban road pricing
The idea of charging motorists for entering city centres by car was first attempted in Cambridge. The Cambridge congestion-metering scheme involved charging by the actual degree of congestion encountered. Although the scheme from a theoretical point of view is very attractive (drivers are charged for the congestion they cause), the scheme was not implemented, mainly due to political factors and the complexity of the scheme from the users point of view.
1.4 Ongoing examples of urban road pricing
There are currently very few examples of road pricing in Britain with tolls for road bridges and tunnels the only road pricing worthy of mention. There are tolls for vehicles at the following locations;
Humber Bridge
Tyne tunnel
Mersey tunnel
Dartford tunnel
Severn Bridges
Scotland: Skye Bridge, Forth Bridge, Tay Bridge and Erskine Bridge
Birmingham Northern Relief Road
The BNRR which will provide a motorway link around the northern and eastern edge of the West Midlands conurbation with the aim of relieving pressure on the congested M6 will be Britain’s first ever toll road. The road is being privately built and will be operated and maintained by Midland Expressway Limited (MEL) and is expected to open in 2004. MEL will responsible for the operation and maintenance of the road for a 50-year concession period. The road will be part of the Trans European Road Network and comprise 27 miles of dual 3 lane carriageway
Generally, tolls will be payable on exit from the road, and users will pass a barrier only once, when they pay the toll. Collection at all toll stations will operate both manually and automatically.
Durham Congestion Charging.
The city of Durham will be the first UK city to make use of the government’s new legislation which allows the introduction of road pricing schemes in town centres.
Unnecessary vehicle activity within the historic core of the city on the Durham Peninsula World Heritage Site creates a congested environment, which detracts from the attractiveness of the area and gives rise to conflicts with pedestrians.
The proposed scheme would introduce a flat-rate charge to access this confined area during specific times, apart from those for whom access is essential who will receive permits. The funds derived from the congestion charging scheme will be invested in a frequent and accessible Park and Ride bus service to cater for tourists, shoppers and workers. These buses would need to be suitable for the narrow streets in the City Centre.
1.5 Future commitments to urban road pricing
Together with 24 interested local authorities, the Government set up a Charging Development Partnership (CDP). Through this high level forum the Government and the local authorities aim to share ideas, experiences, and develop pioneering schemes to tackle congestion and pollution and to improve local transport services and infrastructure for the benefit of all users. The effects of these initial schemes will be monitored and used to help in the design of future schemes. The partnership includes the following local authorities;
Leeds
In Leeds, the proposed scheme would require motorists to purchase a paper permit in order to use roads within an area roughly bounded by the Inner Ring Road. The scheme assumes 35 crossing points involving about 56 traffic lanes, 100,000 users per day, and mobile enforcement patrols. Vehicles would be required to display a permit on all roads within the charged area.
If introduced, the scheme allows for a possible technology upgrade after 10 years to an electronic road user charging system. Leeds has already been selected as the English site for the DETR’s electronic road user charging demonstration due to run between 2001 and 2002.
A number of projects have been identified based on anticipated revenues and other funding. These include:
a Leeds Supertram,
completion of the Inner Ring Road for traffic avoiding the charged area,
more Quality Bus schemes on all corridors into the city centre,
new local railway stations and additional rolling stock, and
faster implementation of cycling and walking schemes.
Derbyshire
The aim of the proposed scheme is to tackle congestion and environmental damage caused by car traffic at a popular beauty spot within the Peak National Park. A charging point would be located at a key access point and charges would be levied on Saturdays, Sundays and Bank Holidays. Local people and their visitors, workers, emergency vehicles and service buses would be exempted from charges.
This small-scale scheme could be operational in 2001. Surplus revenues will be used to fund improved public transport facilities. The initial key improvement will be an expansion of the current public transport provision between the rail station at Bamford (on the Hope Valley line) and Fairholmes, including Park and Ride from a car park about 1 mile away. This will operate at regular intervals until dusk. Additionally, there will be new interchange facilities and better provision for cyclists and walkers. Drivers would be notified of the charges using Variable Message Signs.
One element of Bristol’s Integrated Transport Strategy is the development of a road user charging scheme for the city centre. Proposed is an electronic cordon with 14 entry gates only charging vehicles on inbound journeys in the morning peak.
Working in partnership with the key stakeholders, including the public, the road user charging scheme is supported provided alternatives are in place. Some key elements of the Integrated Transport Strategy would be brought forward such as the development of the rapid transit system, bus service provision, development of Park & Ride sites and improved travel information.
Greater Manchester
The ten Greater Manchester authorities are keen to explore what contribution road user charging and the workplace parking levy might make to the Greater Manchester transport strategy. The authorities believe strongly that prior delivery of new high quality public transport alternatives is essential. These include enhancements to Manchester Metrolink and Quality Bus Corridors.
Hampshire
Hampshire, like most other south-east counties, is experiencing higher than average car ownership, traffic growth and further distances travelled. Road user charging and workplace parking levy schemes offer a possible means of tackling the associated problems resulting from these trends and enabling the provision of new and improved transport services and infrastructure over an extended timescale. Hampshire wish to investigate all the issues relating to charging prior to deciding whether to progress with any schemes within the county.
Edinburgh
Edinburgh has been carrying out the hearts and minds exercise with regard to urban road pricing for sometime. They are now developing initial scheme ideas and assessing potential operational frameworks. During PRoGRESS they aim to develop this issue further and build up public and political commitment to the concept leading to a trial of the initial concept.
The basic concept is a pricing cordon where vehicles are charged per trip across the cordon boundary. This can be further developed into a zone system where each trip across a zone boundary is charged. These charges may vary according to times of day and different vehicles or user types. This kind of concept is also being considered in Bristol.
Phase 1 of research into road pricing in Edinburgh completed in April 2000 concluded that:
road user charging provides overall economic benefits (by reducing congestion)
there is substantial public acceptance for an investment package based on charging
a low charge (say £1) is likely to have minimal impact on business
a simple city centre charge of around of £1 would generate tens of £million per year
it should be possible to establish mechanisms to get up-front funding
The Council agreed, on 4 May, to proceed with Phase 2. The preconditions for road user charging remain:
the revenue must be spent only on transport
the money raised must be additional to, not in place of, existing funding
transparent accounting for income and expenditure
there must be significant investment in public transport from the outset
Phase 2 Programme
|
Year |
Action |
|
2000 |
initial development of a charging and investment package for Scottish Executive approval in principle |
|
2001 |
develop detailed proposals, consult on the charging scheme and proposed transport projects |
|
2002 |
consideration for Scottish Executive approval in detail. Some ‘up-front’ projects start |
|
2003 |
further improvements in place. Charging starts mid 2 |
London
A study by a group of independent transport professionals, the Road Charging Options for London (ROCAL) report concluded that a system based on vehicle registration numbers with a £10 daily charge and enforced by cameras could have a significant impact on traffic conditions in central London. Drivers using a vehicle in the charging zone would pay the charge, either in advance or on the day to have the registration number of their vehicle entered into a database. The number plates of vehicles within the zone would be monitored by fixed and mobile cameras. The congestion charging scheme would be complemented by a range of measures designed to make public transport and other alternatives to car travel easier, cheaper, faster and more reliable. The role of buses will be important as their capacity can be increased more quickly than the underground or heavy rail options. To improve bus operation, there will be better enforcement of all bus lanes through use of CCTV cameras on buses and at the roadside.
The authorities in the table below are aiming to introduce the Workplace Parking Levy:
Workplace Parking charging schemes
|
Authority |
Problem |
Use of WPPL revenues |
|
West Midlands
|
a growing economy, but highest levels of congestion in UK outside of London |
|
|
Nottingham |
|
|
|
Cambridge |
|
|
|
Chester |
|
|
|
Milton Keynes |
|
|
|
Reading |
|
|
"Membership of the Charging Development Partnership does not commit local authorities to introduce congestion charging schemes, and progress of any schemes that members may choose to develop will depend on local circumstances. Firm proposals at present and their likely timetable are: 2002 - Durham and Derbyshire [both RUC]; 2003 - London [RUC]; 2003/4 - Nottingham [workplace parking levy]; 2005 - Bristol [RUC]. Enquiries about detail of schemes and requests for up-to-date information are best directed to the relevant local authority".
2 Projects
2.1 Details of Relevant ongoing Projects
DIRECTS
The DETR and the Scottish Executive are undertaking a technical trial of equipment for use in charging schemes, called DIRECTS (Demonstration of Interoperable Road-user End-to-end Charging and Telematics Systems). One of the outputs from the project will be a national standard for in-vehicle and roadside equipment. The demonstration will deliver an ‘open' minimum interoperability specification for road charging which has been proved over 12 months of ‘live' on-road operation of a full charging system. Work is expected to start on the project in 2002 and run throughout 2003.
3 Legal and Institutional Issues
3.1 Current legal situation regarding urban road pricing
England
The 2000 Transport Act, gives Local Authorities, outside Greater London, new powers to introduce Road User Charging (RUC) or Workplace Parking Levy (WPPL) Schemes where they believe these will be effective in tackling congestion and pollution in their areas. [For London such powers already exist through the Greater London Authority (GLA) Act 1999.] The Bill also provides for the revenue raised from these schemes to be ring-fenced and to be used specifically for local transport improvements.
Together with 24 interested local authorities, the Government set up a Charging Development Partnership (CDP). Through this high level forum the Government and the local authorities aim to share ideas, experiences, and develop pioneering schemes to tackle congestion and pollution and to improve local transport services and infrastructure for the benefit of all users. The effects of these initial schemes will be monitored and used to help in the design of future schemes.
Traffic authorities can make orders to give effect to charging schemes provided that any statutory guidance has been adhered to, but subject to confirmation by secretary of State where a scheme does not fully accord with any statutory guidance. Unless or until such guidance is produced, all schemes outside London will need to be individually approved be the Secretary of State. Funds raised from urban road pricing schemes must be retained by the Local Authority for spending on improved local transport.
Local authorities have powers to enter into agreements with the private sector in operating, designing and all other aspects of road pricing schemes.
There are four categories of charging scheme depending on the type of authority which is proposing it;
|
A |
A local charging scheme |
Made by a non-metropolitan local traffic authority |
|
B |
A joint local charging scheme |
Made jointly by more than one non-metropolitan local traffic authority |
|
C |
A joint local-London charging scheme |
Made jointly by one or more non-metropolitan local traffic authorities and one or more London traffic authorities |
|
D |
A trunk road charging scheme |
Made by the Secretary of State or the National Assembly for Wales |
A local charging scheme may only be made in respect of roads for which the charging authority are the traffic authority.
(2) A local charging scheme may only be made if it appears desirable for the purpose of directly or indirectly facilitating the achievement of policies in the charging authority’s local transport plan.
A charging scheme must-
designate the roads in respect of which charges are imposed,
specify or describe the events by reference to the happening of which a charge is imposed in respect of a motor vehicle being used or kept on a road,
specify the classes of motor vehicles in respect of which charges are imposed,
specify the charges imposed, and
state whether or not the charging scheme is to remain in force indefinitely and, if it is not to remain in force indefinitely, the period for which it is to remain in force.
The Labour government has facilitated the introduction of road user charging through the Greater London Act and The Transport Act 2000 by giving powers to the London mayor and to local authorities outside London to introduce charging schemes. The treasury agreed to road user charging revenue hypothecation, allowing net charging revenue to be ring fenced for local transport measures for a minimum period of 10 years.
The 1998 White Paper stated that the use of revenues to benefit transport serving the area where charges apply, which in many cases will mean supporting projects in more than one local authority area, will be critical to the success of such schemes.
Scotland
The Transport (Scotland) Act 2001 gives new powers to local authorities to introduce road user charging schemes in Scotland, where this can assist to achieve the objectives in an authority’s local transport strategy. The Act also allows traffic authorities to work in partnership to establish a joint charging scheme. It will be for local authorities to decide whether they wish to bring forward a scheme.
The Act requires that all of the net revenue from any charging scheme is ring-fenced for the purpose of directly or indirectly facilitating the achievement of policies in the authority’s local transport strategy, or strategies in the case of a joint scheme. It also requires that the authority promoting the scheme establish transparent annual accounting arrangements to demonstrate that the net revenue is used for this purpose.
In addition, the Scottish Ministers have set down the following policy criteria that any charging scheme will have to meet:
that the scheme will reduce congestion and/or noise and emissions;
that the net revenues from charging will be additional;
that there is fair treatment of those who pay the charge (and/or suffer the congestion or environmental problem) and those who benefit from the scheme;
that a range of public transport improvements are in place before charging is introduced, with further improvements to follow.
A local authority or authorities acting jointly wanting to introduce a charging (or licensing) scheme must do it by making an order. If an authority then wants to change or revoke a scheme, this must also be done by order. Charging and licensing orders will be brought forward under the Local Authorities Traffic Orders Regulations 1999. The order will define the scope, character, level of charge and other matters. The order will have to be published in draft, and the scheme as a whole will be subject to public consultation on both the principles and the detail.
The Executive wishes to work closely with local authorities that are interested in introducing a charging scheme and will wish to learn from their experience before regulations are made. There will also need to be a period of consultation on the detail prior to the regulations being laid before the Scottish Parliament. It is likely that the Scottish Ministers will seek to make these regulations by the end of 2001. In the meantime, the Executive will provide non-statutory guidance to any authorities wishing to bring forward a scheme before the procedure regulations are in place
The making of a charging scheme will always require the approval of the Scottish Ministers.
The Executive would wish to learn the lessons from early schemes before any regulations are made. It is not envisaged that any regulations would be laid until the experience of the first charging scheme had been assessed. On this basis we would not expect to make regulations before 2005
Wales
the National Assembly for Wales will be responsible for approving charging schemes in Wales in the same way that the Secretary of State will be responsible for approving schemes in England.
A separate White Paper, "Travel Choices for People" has been published which deals with integrated transport policy in Scotland. This states that the Government will bring forward enabling legislation to permit Scottish local authorities to introduce urban road user charging or to levy a charge on workplace parking. Schemes will be individually approved by the Scottish Executive. Legislation will also permit road user charging on motorways and trunk roads.
Northern Ireland
In Northern Ireland, responsibility for approving schemes will fall to the Northern Ireland Assembly. The Department of the Environment for Northern Ireland will publish a separate consultation paper outlining how new charging schemes might operate there and how the proceeds should be used. It will also investigate the possibility of introducing a pilot scheme as a way of exploring the issues relating to potential application in Northern Ireland.
4 Relevant documents or WWW links
4.1 WWW links
National highway authority —
The Highways Agency http://www.highways.gov.uk/
DTLR; http://www.local-transport.dtlr.gov.uk/apartner/index.htm
Motoring organisations;
Automobile Association; http://www.theaa.com/
Association of British Drivers http://www.abd.org.uk/
Green organisations
Environmental Transport Association http://www.eta.co.uk/main.htm
Friends of the Earth http://www.foe.co.uk/campaigns/transport/
Transport 2000 http://www.transport2000.org.uk/
Key cities
Edinburgh;
http://www.vatt.fi/afford/edinburg.htm
http://www.edinburgh.gov.uk/traffic/Congestion_Charging/#pageTop
http://www.edinburgh.gov.uk/traffic/Congestion_Charging/FAQ.html#pageTop
Bristol;
Durham;
http://www.thisisthenortheast.co.uk/the_north_east/archive/2000/08/07/A49at6.duby.html
Leeds
Bristol
http://www.bristol-city.gov.uk/cgi-bin/w3index-frames.pl?DTT0001+BG
Greater Manchester (there is no website for Greater Manchester — this site gives a link to the local authorities within Greater Manchester)
London;
Hampshire;
Professional organisations
The Chartered Institute of Transport
Nottingham
http://www.nottinghamcity.gov.uk/services.asp?ServiceID=1541
http://www.congestionfreenottingham.com/
West Midlands
http://www.go-wm.gov.uk/static/gems/MultiModal/Chapter%207.pdf.
Chester
http://www.cheshire.gov.uk/ltp/demand.doc.
Cambridge
http://www.camcnty.gov.uk/sub/eandt/planning/trplan/v1ch13.pdf.
Milton Keynes
http://www.buckscc.gov.uk/transport_plan/vol1_development.stm
Reading
4.2 Reference documents
DETR: A New Deal for Transport — The Government’s White Paper on The Future of Transport July 1998
DETR: Breaking the Logjam The Government’s Consultation Paper on Fighting Traffic Congestion and Pollution through Road User and Workplace Parking Charges
5 Other Issues
The 2000 Transport Act also contains new legislation allowing local authorities to levy a new parking charge on workplace parking. Local Authorities in five urban areas are currently exploring how a workplace parking levy might be introduced as a counter to the adverse effects of congestion. As with Road User Charging, the revenues will by used to develop local public transport and infrastructure for walking and cycling.
From transport 2010 The Background Analysis;
Road traffic in London would be reduced by 10-15% because of congestion charging. Traffic growth over a large area of London would be reduced relative to baseline forecasts, although outside central London there will generally be increases in 2010 compared to today.
The principal impact of wider local charging would, as expected, be in urban areas. Congestion in medium and small —sized urban areas would be reduced by less than a percentage point overall compared with the Plan forecast. But the impact in the medium sized areas introducing charges would be greater, with absolute reductions on 2000 levels being achieved.
URBAN TRANSPORT PRICING OVERVIEW - AUSTRALIA
The Melbourne City Link project
The Melbourne City Link motorway system, opened in 1999, is notable because, although it is not an urban charging scheme, it includes free-flow multi-lane electronic tolling (DSRC-based) and the concept of a 'day-pass' for unequipped vehicles. Charging of tolls commenced on 3 January 2000. There have now been over 550,000 tags issued and average weekday transactions have grown to about 350,000. There is a daily average of approximately 1,750 alleged toll evasions. Only 12% proceed to enforcement and approximately 440 vehicles have incurred more than ten alleged offences. The Burnley Tunnel is due to open to traffic in December 2000 to complete the project.
There were considerable teething problems with the electronic fee collection (EFC) 'back-office' system, causing the toll-free operation of the road for several months before the EFC system went live in January 2000.
The City Link scheme has now created a 22-km expressway linking the major routes between Melbourne Airport, the port and industrial centres in the south-east (Transurban web site). It uses a fully automatic cashless toll payment system of 16 gantries in total to pay for a network of new roads and improvements in Melbourne to speed flow of general traffic. A DSRC system is used with windscreen placed tags (IVUs) and users are required to set up pre-paid accounts or buy a day pass. EFC deducts the appropriate toll (for the class of vehicle) from central account and the tag gives and audio signal when this occurs and when account levels are running low.
In the Melbourne City Link project, occasional visiting vehicles to the area that do not have an IVU can register their number plate for a "day pass" into the area on payment of a fee. A "grey list" database of visiting vehicle registration numbers is maintained within the central system. Images of registered visiting vehicles are captured by the enforcement cameras but are filtered out using the grey list and discarded.
The Sydney Harbour Bridge system has been installed with the "dual protocol" in place to serve the customers of other roads and other states. The Eastern Distributor tollway is also trialling the "dual protocol" and expects to make their system available to the public at about the same time as the RTA. The systems will be interoperable. The other Sydney tollways are expecting to have new ETC systems available for the public in early 2001.
Future commitments to urban road pricing
Studies are currently looking at;
Privacy
A report on privacy issues is being prepared. If SmartCards are introduced to electronic tolling they will assist in addressing privacy concerns, as they do not require keeping of toll accounts.
Enforcement of tolls
Enforcement is directly in the hands of state agencies as it is based directly on legislation. Enforcement regimes are being put in place now in New South Wales and Queensland. The regime was recently put in place in Victoria. Consistency between jurisdictions is necessary for interoperation.
Technology opportunities and threats
The next change in tolling technology in Australia will not occur for about four years. These technologies are expected to be mature and viable alternatives by that time.
Interoperation
To permit the customers to roam requires the toll road facility providers to "inter-operate", involving complex jurisdictional issues and technical, operational and commercial agreements. Interoperation between the Sydney tollways and also between Sydney, Melbourne and Brisbane tollways is a key outcome.
For more information contact;
National Road Transport Commission
Address:
PO Box 13105
Law Courts, VIC 8010
Level 5/326 William Street
Melbourne, VIC 3000
Tel: (03) 9326 8964
Fax: (03) 9321 8444
E-mail: nrtc@nrtc.gov.au
WWW: www.nrtc.gov.au
CIT Australia www.ozemail.com.au
URBAN TRANSPORT PRICING OVERVIEW - CANADA
Ongoing examples of urban road pricing
Toronto Highway 407
A major road construction of roads and bridges has been undertaken in Ontario, Canada by a private-public partnership that has implemented the 407 ETR (Electronic Toll Road) scheme (407 ETR website). The technology and billing aspects of this scheme are particularly interesting in that in addition to IVU to Roadside equipment communication, the system can also use automatic number plate reading (ANPR) video recognition systems. Moreover, billing takes place automatically after a vehicle has used the highway.
The 407 ETR runs east-west across the north of Toronto - Canada's largest city - from Highway 403 in the west to Highway 48 in the east for a total of 69 kilometres. The system monitors the entry and exit point of all vehicles from the 29 interchanges on the highway. Fully automatic tolling is possible using windscreen transponders that provide audio and visual feedback to drivers that their account is being debited.
Additionally, vehicles without transponders are also able to use the ETR. In this case, the tolls are tallied using a state-of-the-art number plate recognition system that sends a video image to a central processing computer when the vehicle enters and exits the highway. When the transaction has been processed, an invoice is then sent to the owner of the vehicle by mail.
Failure to settle their payments within 91 days results in the details of the offending vehicle (and driver) being sent to the Canadian Ministry of Transportation for plate denial. This may result in the vehicle licence plate not being renewed until all outstanding charges are paid in full and a person’s account may also be sent to a debt collection agency.
Link: www.407etr.com/home.phtml
URBAN TRANSPORT PRICING OVERVIEW — HONG KONG
Road Tunnels
There are 12 road tunnels, including three immersed-tube cross-harbour tunnels for which there are tolls. The Government owns seven road tunnels and the other five are private tunnels.
Tunnels in Hong Kong
|
Name |
Vehicles per day |
Toll charge |
|
Lion Rock Tunnel |
92 000 |
$8. |
|
Aberdeen Tunnel |
57 000 |
$5 |
|
Airport Tunnel |
59 000 |
Free |
|
Shing Mun Tunnels |
54 000 |
$5 |
|
Tseung Kwan O Tunnel |
67 000 |
$3 |
|
Cheung Tsing Tunnel |
- |
Free |
|
Cross-Harbour Tunnel |
119 000 |
from $8 to $30 |
|
The Eastern Harbour Crossing |
71 000 |
$8 to $45 |
|
Tate’s Cairn Tunnel |
62 000 |
$8 to $20 |
|
Western Harbour Crossing |
42 000 |
$15 to $95 |
|
Tai Lam Tunnel and Yuen Long Approach Road |
44 000 |
$15 to $60 |
|
Discovery Bay Tunnel |
300 |
$50 to $250. |
Tsing Ma Control Area (TMCA)
Opened in May 1997, it covers a key section of the highway route to the Hong Kong International Airport at Chek Lap Kok. It comprises a 17- kilometre expressway network including Tsing Kwai Highway, Cheung Tsing Tunnel, Cheung Tsing Highway, Northwest Tsing Yi Interchange, Lantau Link and North Lantau Highway (up to Yam O Interchange). With the opening of Ting Kau Bridge in May 1998, the whole road network in TMCA was fully opened to traffic. It is used by 37,000 vehicles daily. Equipped with the most extensive traffic control and surveillance system ever introduced in Hong Kong, TMCA is managed, operated and maintained by the Tsing Ma Management Limited. With a one-way toll collection arrangement, vehicles travelling on Lantau Link will be charged twice the single journey toll when they are heading east leaving the airport. The double tolls range from $20 to $80.
Future commitments to urban road pricing
A major feasibility study was commissioned in Hong Kong which began in March 1997, with the objective of examining the practicability of implementing an Electronic Road Pricing (ERP) system in Hong Kong and assessing the need for such a system to meet transport objectives. The study evaluated possible ERP systems, their cost effectiveness and consequences, giving due consideration to transport planning, systems technology and public acceptance.
The study reviewed worldwide development of road pricing, assessed future traffic conditions under a range of scenarios, considered alternatives to ERP, undertook field evaluation of the technology options, considered environmental impacts, considered legal and procedural issues, investigated system design issues, explored integration with Intelligent Transport Systems (ITS) applications and prepared an outline for public consultation.
Technology
Various technological options were assessed under a set of criteria including capital and maintenance costs, system accuracy and reliability, limitations, security against fraud, integration with existing toll systems and smart cards, anonymity, etc. Two options, one based on Dedicated Short-Range Communications (DSRC) and one on Vehicle Positioning Systems (VPS), were selected for field evaluation.
The DSRC system was a free-flow multi-lane charging system without any barriers or lane restrictions. In principle, it was similar to those implemented in Singapore, Norway, Toronto and Melbourne Two types of transponders were tested, both a one piece transponder for central billing and a two-piece transponder with a smart card.
Field trials
System design
The study looked into a possible ERP system for Hong Kong covering the following aspects.
Charging Method - A cordon-based charging scheme was preferred to distance-based, time-based or congestion-based options for its simplicity in both operation and enforcement, and technology readiness. Directional charging, i.e. charging on entering in the morning and exiting in the afternoon, was preferred to bi-directional charging whereby charges would be imposed in both directions during the busy hours.
Charging Area — this should only cover areas that are perceived to be the most congested and are well served by public transport to provide opportunities for road users to change mode of travel. An initial single zone on Hong Kong island was preferred to multiple charging zones.
Charging Period - analysis showed that peak charges should apply from 08:00 to 09:00 and from 17:30 to 19:00, with slightly lower inter-peak charges. Shoulder periods at lower charge rates for 30 minutes before the morning and after the evening peaks were proposed. No charges were envisaged for the overnight period from 19:30 to 07:30 or on Sundays and Public Holidays.
Charging Rate - The recommended level of charge was determined by the target traffic speed to be achieved. Based on the historical average traffic speed, a target speed of 20 km/h was adopted for the model tests. Optimum charge levels were recommended depending on the period of the day and the traffic demand growth scenario.
Smart Cards — Smart cards and central billing both proved effective as payment methods. Smart cards were seen as a good method to ensure privacy. The contactless "Octopus" card was recommended over a contact smart card. The use of the Octopus card for multiple applications was seen as a primary benefit for integrated transport as opposed to a single application smart card.
Exemptions — the Study recommended that any exemptions should be evaluated against the basic principles of equity, efficiency and public acceptability. Differential charge rates were preferred to outright exemptions.
Impacts
It was estimated that 40% of car trips in the morning peak would be diverted to public transport and 10% would change time of travel. The remaining 50% would stay and pay the road user charges but would benefit from higher travel speeds and less congestion. Overall, air quality would improve with ERP. It is worth noting that the high diversion rates should be considered unique to Hong Kong where a very robust public transport system is already in place, carrying 89% of all personal trips.
Implementation Programme
Benefits
The study estimated annual economic benefits from ERP as approximately double the cost of implementing the scheme. The system payback for either a DSRC or VPS system was seen to be less than two years. The integration of an ERP system with the overall ITS goals of Hong Kong was also seen as a major advantage of an ERP implementation.
Public Consultation
The study recommended that implementation of ERP would not be possible without a general public consensus on the objectives and principles of the proposal, and that a well-planned and executed public consultation programme would be necessary.
The Final Report from the study has been accepted by the Hong Kong Government but has not yet been published. No formal Government decision or public debate has taken place on whether or not to go ahead with an implementation programme for ERP.
For more information, contact;
Organisation: Transport Bureau
Address: 15/F & 16/F, Murray Building,
Garden Road, H.K.
Contact:
Tel: (852) 2189-2189
Fax: (852) 2868-4643
E-mail : tbenq@tb.gcn.gov.hk
WWW: http://www.info.gov.hk/tb
URBAN TRANSPORT PRICING OVERVIEW — NEW ZEALAND
Over the last five years, New Zealand has been examining the way in which it prices, funds and manages its transport systems. This work has focused mainly on the road network, its externalities, and the pricing tools that could be used to manage them. At the Government level this work has centred on economic analysis and technical solutions such as ERP. Where the public has become aware of Government's proposals, however, there has been general opposition and a strong unwillingness to pay.
A desktop literature search found many examples of ERP proposals from around the world, but few examples of research into the public's attitude towards road pricing. Therefore Auckland City commissioned research to determine: the public's understanding of the issues, their preferences towards what transport services should be provided, how the services should be paid for, and how they should be managed. The first study was a series of focus group interviews that sought to obtain qualitative data on public attitudes towards transport. The second, conducted in December 1999 was a phone-based survey intended to elicit quantitative data. The data obtained, demonstrated that public acceptability was indeed a key gap in the process of developing and introducing ERP.
URBAN TRANSPORT PRICING OVERVIEW- SINGAPORE
Previous examples of road pricing
Singapore implemented a road user charging scheme known as the Area Licensing Scheme (ALS) in 1975. This operated until 1998, and provided a substantial body of evidence on the effects and practicalities of road user charging. (Ayland and Catling, 1999)
The ALS initially required motorists in private cars (and, after the first few months of operation, taxis) to purchase and display on their windscreen a monthly or daily paper licence in order to enter a Restricted Zone (RZ) covering the central business district. The scheme originally covered traffic entering the Restricted Zone during the morning peak period, from 07.30 to 10.15. During its 23 years of operation, the scheme was extended and modified several times to reflect changing conditions, and eventually applied to all vehicles and covered the whole of the day (with separate peak and off-peak periods).
As there was no real experience of such schemes prior to 1975, setting of the initial licence fee was based on judgement. The aim was to reduce peak-hour traffic entering the Restricted Zone by 25 to 30 per cent. The actual effect was significantly greater — after six months of operation traffic flows entering the Restricted Zone during the peak period were 73 per cent lower than before the start of the scheme (Holland and Watson, 1978). Speeds within the central district increased significantly, reflecting the decrease in traffic flows and congestion. Responses of travellers deterred from using their cars included changing mode to public transport, changing time of travel to avoid the charged period, car-sharing, and re-routing to avoid the charged area.
In 1998, the ALS was replaced by an electronic road pricing (ERP) scheme. Under this scheme all vehicles wishing to enter the defined charged area are fitted with an electronic in-vehicle unit on their windscreens.
The ALS was demonstrably successful in reducing congestion throughout its life, by encouraging people to make significant changes in their travel behaviour. As an example, only 33% of journey-to-work trips were made by public transport in 1974, before it was introduced. By 1994, this proportion had more than doubled to 67% (Menon, 1998). Morning peak period car flows into the central area in 1992 were only approximately 50% of the level before the Area Licensing Scheme was introduced 17 years earlier. There were of course significant improvements in public transport over that period, but road user charging undoubtedly had a major effect in changing behaviour and keeping city centre congestion under control.
The APAS study (Halcrow Fox, 1996), as reported by the CAPRI project, found that morning peak flows into the central area in 1992 were only 50% of that recorded prior to the implementation of the scheme in 1975. As a consequence of this, bus patronage increased by 83%. (CUPID, 2000)
A number of strengths and weaknesses of the paper-based ALS have been identified (Menon, 1998) as follows:
Strengths — easily implemented, easily understood by motorists, relatively cheap to operate
Weaknesses — very labour intensive, enforcement is boring and mundane, each change brings about more complexity, i.e. inflexible, multiple entries allowed.
The key elements of ALS when abandoned in favour of ERP in 1998 were:
Cordon around most congested parts of city
Overhead gantries at 33 entry points — signed as "Restricted Zone" (RZ)
Daily or monthly paper licences displayed in windscreen or special holders on handlebars
Whole day and part-day (off-peak) licences
Three categories (company car, motorcycle, other)
Licences distinguished by colour and shape
Available at post offices, convenience stores, petrol stations and special licence sales booths on approach roads
No policing in RZ — vehicles free to move around and leave
The ALS system of charging Road Users worked relatively well in keeping Singapore’s traffic problems within manageable levels but the system came to be viewed as labour-intensive and inflexible (LTA website). The Singapore Government therefore started looking into Electronic Road Pricing (ERP).
Ongoing examples of road pricing
The Singapore ALS was replaced in 1998 with a fully automatic system using DSRC technology. The main reasons for the new ERP scheme replacing the successful ALS scheme (Ayland and Catling, 1999) were:
The ERP scheme would target vehicle use more directly, since charges would be levied per trip, rather than per day — with ALS, once a licence had been purchased for a particular day, there was no incentive to minimise vehicle usage on that day
ERP would allow more complex charging tariffs to be implemented which covered different areas that also suffered from congestion and were fine tuned to target the congestion problem more directly. ERP would be more flexible and would allow scheme changes and charge rate changes to be implement more regularly and more easily.
Enforcement would be improved and less labour-intensive
Because of its greater flexibility, ERP would offer greater possibilities for using graduated "shoulder charges" to minimise problems caused around time boundaries when the charged periods start and finish
The ERP scheme was the first fully operational urban electronic road user charging scheme introduced for demand management purposes anywhere in the world (Norwegian systems had been introduced earlier, but were primarily for raising revenue. The Singapore system uses Dedicated short-range Communication (DSRC) with double overhead gantries at each charge point, providing genuine free-flow multi-lane operation including full enforcement at each charge point. Every vehicle (including foreign vehicles, almost exclusively from Malaysia, which can have temporary units) is required to be equipped with an In-vehicle Unit (IVU) which uses a smart card for payment
Net revenues in Singapore are used to offset punitive car ownership taxes. Charges are reviewed every three months in the light of actual and target traffic speeds. Given the politics of Singapore, the previous acceptance of the ALS, the up-front revenue neutrality and the regular charge reviews, there has been little problem of public acceptability (TTR, 2001).
The Singapore ERP scheme (and the ALS before it) represents one of the very few examples of actual urban road user charging schemes in the world.
For more information, contact;
Land Transport Authority
10 Sin Ming Drive Singapore 575701
Tel: 1800 - CALL LTA or 1800 - 2255 582
National highway authority —
LTA http://www.onemotoring.com.sg
Motoring organisations
The Automobile Association of Singapore http://www.aas.com.sg
Ministry of Transport http://www.mot.gov..sg
URBAN TRANSPORT PRICING OVERVIEW - USA
Ongoing examples of urban road pricing
There are several interesting examples of urban road pricing in the USA;
Minneapolis and St Paul.
A research study was undertaken into the options for congestion charging in the twin cities of in the mid 1990s (Wilbur Smith Associates, 1997). The study also considered a possible state-wide mileage-based tax for Minnesota.
The study developed a series of pricing strategies based upon the results of traffic modelling. A total of 25 congestion pricing alternatives were identified, thirteen of which underwent further detailed analysis (based on the scenario for the year 2015). The 13 options covered a range of different roads, charged times and conditions, and additional measures. Pricing bands included peak, off-peak and free, and varied for different categories of vehicles. Regional travel demand models maintained by the local and state departments were used to evaluate potential changes in travel behaviour.
A major part of the study was concerned with outreach, public opinion and acceptability. Outreach included 13 focus groups (12 people for each session), a ‘Citizens Jury’ (24 jurors), 41 opinion leaders, over 1000 computer assisted personal interviews (using interactive video interview stations), and a land-use/equity symposium. Overall conclusions from the public outreach exercises were:
As part of the Intermodal Surface Transport Efficiency Act (ISTEA) in 1991, the FHWA commenced testing and evaluation of the potential of congestion pricing. A US Congestion Pricing Program was established that reports periodically to Congress (USDOT, 1998).
Projects within the programme are divided into active demonstration projects and pilot program feasibility studies. The active demonstration projects include:
San Diego, California - 13km reversible HOV on the I-15 highway which is open to a limited number of solo paying drivers (limited to 1025 vehicles). Vehicles with 2 or more passengers travel for free. Since March 1998, charges vary with the levels of congestion, and an express bus service has been introduced supported with revenues generated.
Houston, Texas - In January 1998, a 21km stretch of I-10 Katy Freeway equipped with a single lane reversible HOV lane (for vehicles with 3 or more people) began permitting vehicles (currently limited to 300 vehicles) with only two occupants to purchase entrance at $2 per trip. The facility uses fully automated windshield-mounted transponders.
Lee County, Florida - In summer 1998, variable pricing was introduced on two toll bridges. Tolls either side of peak periods were reduced to encourage journey time shifts. Electronic toll collection facilities have also been installed. The project has been in operation for almost two years. It has a discount price in the peak shoulder hours, creating an incentive to shift peak traffic. Eligible customers with an electronic prepaid account and a transponder (25% of the vehicle traffic) shifted travel times into shoulder periods. The reduction of peak hour traffic lies between a 1-1.5% and 3.5-4% reduction (%of the total volume of vehicles).
Orange County, California
The SR-91 "Express Lanes" (or HOT Lanes) represents a private sector congestion pricing program. Opened in December 1995, the lanes have variable pricing and automated tolling. Tolls range from $0.60 to $3.20 depending on the time of day and levels of congestion. Vehicles carrying 3 persons or more receive a 50% discount. Tolls are automatically deducted from customers' pre-paid accounts. Transportation Corridor Agency (TCA) operates 51 miles of toll roads in Orange County and imposes peak period pricing in the major direction of travel on the Foothill Eastern. The San Joaquim Hills Board is considering value pricing with the goal of recommending an implementation at the same time next year.
Link: www.dot.ca.gov/hq/paffairs/about/toll/rt91.htm
Portland (Oregon)
Metro conducted a peak period pricing study. It was a regional study looking at all types of pricing, including single spot locations, partial facilities, whole facilities on existing roads, corridor pricing, area pricing and parking pricing. ECO Northwest created a new travel model to review the actual and projected impacts. The major goal was to determine if pricing was a desirable tool to manage congestion, but also to broaden education of the concept. Metro convened a citizen task force of 15 citizens as an oversight committee to make recommendations. There was an extensive pubic outreach process. A broad range study generates controversy but it also created a regional discussion. Media coverage was not negative and they had some public support. In June 1999, the task force recommended peak pricing as an appropriate tool to be considered on every major new highway project, but not on existing lanes. Also recommended the region select a pilot within two years. Recommendations were incorporated into the regional transportation plan. Next steps are corridor level studies including intensive outreach, a comparison of pricing to other solutions, and to establish design and operational characteristics. Options to be studied include the I-5 Columbia River Bridge, two major new highways or 5 HOT
In addition to the active demonstration projects, there is ongoing work in seven pilot programme feasibility studies, which are supported by FHWA.
The two pilot schemes that have been in operation long enough to give data on the impacts of congestion pricing are reported in section 2 of this report.
It should be noted that the demonstration projects within the US programme are largely focussed on making better use of existing HOV and toll facilities, rather than restraining traffic per se. Large highways into the centre of cities, with the opportunity for making some lanes HOV and pricing lanes without restricting capacity, are more commonplace in the USA than the UK. The majority of the pilots and feasibility studies in the program examine the potential for congestion pricing on individual roads, rather than the more common UK approach of considering area-wide schemes.
California State Route 91 HOT Lane and I-15 Variable Pricing
The State Route 91 high occupancy tolling lane (HOT) was opened in December 1995 and is America's first toll road to employ variable congestion pricing (Caltrans website). It is a privately financed, fully automated 10-mile (15 km) group of four toll lanes, located on the median of an existing eight-lane highway in Orange County, California.
Tolls vary during the day according to traffic volumes, direction and other factors so as to maintain free-flow conditions at all times. Currently, tolls follow a published schedule although the technology could permit tolls to vary dynamically. Cars with one or two people pay a toll while vehicles with three or more occupants travel free. The project was developed in a partnership between Caltrans (California Department of Transportation) and the California Private Transportation Company.
All tolls are collected electronically by Electronic Fee Collection (EFC). The system utilises Dedicated Short-Range Communication (DSRC) as a means of communication between vehicles and roadside subsystems. There is not, as yet, nation wide standardisation in the US (Traffic Technology Today, June/July 1999). However, the California Department of Transport developed a compatibility specification for automated vehicle Identification equipment that the California Legislature made into law in July 1992 as Title 21. The SR91 electronic toll road meets the Title 21 standard.
The Route 91 Electronic Toll Collection system uses a passive RF tag which utilises back-scatter technology to respond to information from a reader by reflecting and modulating the reader’s RF signal. These passive RF tags are generally small and light and relatively inexpensive and have a longer battery life as they operate mostly on power generated by the reader.
Initial indications are that the SR91 Toll lanes have successfully created a market of commuters willing to pay premium tolls in order to bypass recurrent congestion on an urban freeway. By the end of the first year, between 70,000 and 80,000 users had obtained transponders and the peak period traffic increased so dramatically that a toll increase was required to protect the toll lanes from congestion (Caltrans website).
Toll lane traffic is currently at 26,000 vehicles per day. Surveys show that 65-70% of the travellers approved the idea of adding new tolled capacity to bypass congestion. However, approval levels for the idea of operating the Highway as a private enterprise have remained in the 35-45% range both before the construction of the lanes and 5 months after opening.
The results of a final report by Cal Poly evaluating the SR91 scheme on behalf of Caltrans (Cal Poly, 1998) were that there was a strong correlation between use of the express lanes and travel time savings, thus showing the objective to offer a congestion free service was achieved. Of more relevance to road pricing are the results of HOV use, which were given free use of the HOV lane, and therefore priority over non-paying single occupancy vehicle (SOV) using the more congested alternative lanes.
Results of monitoring showed a 40% growth in number of peak period HOVs carrying 3 or more passengers (HOV3+) during the first 3 months of operation when HOV3+ paid no tolls. Van-pooling data from local employers with many employees using SR91 showed a 10-15% rise in the formation of van pools and participation levels. This rise is against a small base level of around 3.7% HOV3+ before SR91 tolling opened and the growth in SOV traffic (due to extra capacity) actually meant average occupancy declined. Surveys found in fact that a larger number of commuters switched from HOV to SOV than vice versa in the year after the express lanes opened. The net effect was a 7% decrease in the proportion of HOV users as ride sharers were attracted to using SOV even if they had to pay for a congestion free expressway.
Dynamic pricing on the Interstate 15 (I-15) pilot project in began in March 1998 with charges varying by the time of day and level of congestion. The system utilises vehicle transponders and overhead readers (Federal Highway Administration, 1998). Drivers are informed (via variable message signs) about the highest toll they can expect during the hours of operation (5:30am-9:30am and 2:30pm-7:30pm), with tolls ranging from 50 cents to $4.00, under regular conditions. The San Diego Association of Governments (SANDAG) has the authority to allow tolls to increase to $8.00 per one-way trip under certain conditions. The charges can change every 6 minutes in 50 cent increments. In response to drivers who may wish to shift modes, a new express bus service has been introduced as part of the pricing program.
I-15 is being monitored for a wide range of impacts. Preliminary results indicate high levels of HOV travel and speed have been sustained, with solo drivers reporting time savings of 10-20 minutes. Use of the HOV lane has also increased by 20%.
The experience of the SR91 and I-15 schemes could be relevant to Hampshire if similar types of scheme were considered for the M27 corridor.
Houston, TX
The Katy HOV lane. Has proved to be overly popular with 2+ requirements, but under-utilised after it changed to 3+ occupancy during peak hours, and per person throughput dropped somewhat. QuickRide allowed a 2+ buy-in scenario and has been in operation for 2 _ years now. It has experienced a 25% increase per year and has 500 active accounts. Users pay $2 each way during peak hours. An AVI system uses antenna to read transponders and debit the associated account. Users with 3+ occupancy have a pocket pouch for the transponders, but this creates a problem with enforcement. Financially, it's a breakeven proposition. Daily trips range between 150-200 users, but only 1 in 4 transponders are used in a week. Houston Metro plans to market the HOV lane more aggressively and improve the number of per day users. They are also expanding to the 290 corridor.
CDOT, Denver, Colorado
The Boulder Congestion Pricing Study. Value pricing proved to be quite difficult in Boulder. The public and politicians were opposed to pricing. The Denver study focuses exclusively on HOT lanes. The study, under discussion since 1996-97, started last summer and will be completed this winter. Mr. Swisher noted Senate Bill 88 that requires CDOT to issue an RFP for private entities to convert an HOV lane to a HOT lane. Consecutive facilities I-25 and US 36 are the only viable candidate for the HOT lane concept. CDOT is examining three levels: a minimal application with minimal modifications to the facility; a moderate application does not extend the existing facility, but gives more options and increases ridership; and the maximum modification, extends the I-25 HOV/HOT facilities several miles to North/Northwest. The connecting of the two facilities (I-25 to US 36) makes it difficult to predict the increased usage for the HOV lanes. This affects the ability to model the selling capacity and the interest in the facility as a HOT lane. Three rounds of focus groups have been completed. Focus groups were initially sceptical but quickly switched, with 90% supporting the idea. However, CDOT knows this is not a political reality.
6.2 Current legal situation regarding urban road pricing
The legislation regarding urban road pricing (which in the USA is called "Value Pricing" is contained in theTEA-21 (Transportation Equity Act for the 21st Century). The objective of this program, formerly the Congestion Pricing Pilot program, is to encourage implementation and evaluation of value pricing pilot projects in order to promote economic efficiency in the use of highways and support congestion reduction, air quality, energy conservation, and transit productivity goals. [1216(a)]
Funding
Provides funding to support the costs of implementing value pricing projects included in up to 15 new State and local value pricing programs.
Funds allocated to a State shall be available for obligation for three years after the year of authorisation.
If the amount of program funds authorised but not allocated to the States totals more than $8 million at the end of a fiscal year, the excess amount shall be available for redistribution to all States for purposes of the Surface Transportation Program.
ISTEA authorised $25 million in FY 1997 for the Program, but the National Highway System (NHS) Act redirected these funds to other uses.
Program Features
Local pilot programs have the flexibility to encompass a variety of value pricing applications, including:
All 15 new State and local pricing programs may include projects involving tolls on the Interstate system. State and local pricing programs may permit vehicles with fewer than two occupants to operate in high occupancy vehicle lanes as part of a value pricing project. Pricing programs are required to consider potential adverse financial effects on low-income drivers, and, where appropriate, to identify measures to mitigate these adverse effects.
There is also a pilot program under which a State may collect tolls on an Interstate highway for the purpose of reconstructing or rehabilitating an Interstate highway that could not otherwise be adequately maintained or functionally improved without the collection of tolls
The interstate system is ageing, is congested, and at capacity at many locations. Americans are moving further from the nation's metropolitan centres, which is lengthening traffic jams. The cost of delay per year is estimated to be $1 trillion and the user costs of our system is estimated to be $1 trillion.
WWW links
Value Pricing Homepage;