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Opposition may stop roads work

Nov 28 2003

By Paul Dale, Birmingham Post

 

Work on a £2 billion public-private finance scheme to transform Birmingham's potholed roads and footpaths is in danger of being halted by Conservative and Liberal Democrat councillors.

The two parties are expect to join forces at next week's full city council meeting to call a halt to what would be the country's biggest privately financed roads scheme.

The PFI plan, which would see a record-breaking £2 billion invested in roads, footpaths and street lights over the next 25 years, is being promoted by the council's controlling Labour group.

But Labour, without an overall majority in the council chamber, could be defeated on the PFI issue.

Conservative and Liberal Democrat councillors argue that the scheme is financially flawed, will not provide value for money and has not been properly researched.

Both political groups are insisting that preparatory work on the PFI must cease while an investigation into the merits of the project takes place.

John Hemming, leader of the Liberal Democrats, confirmed that his group was likely to vote with the Conservatives in an attempt to halt the PFI process. If successful, the move would prevent the council from advertising for a private sector partner - effectively halting the roads scheme.

Coun Hemming (Acocks Green) said: "We would need to see far more evidence about the financial implications for Birmingham before we could back this scheme. I don't believe the city is getting any extra money from the Government, it is very much a matter of smoke and mirrors."

The Birmingham PFI scheme, which is backed by Ministers, would see the council netting £379 million of Government credit, which would be invested to pay for a contractor to maintain the roads network. With council and private sector contributions taken into account, the project would be worth £2 billion.

However, the council must commit £42 million a year, indexed for inflation, on highways over the 25-year contract period.

John Tyrrell, cabinet member for transportation, admitted he was no fan of PFI but said there was no alternative. He pointed out that Birmingham's pavements were in such a poor state of repair that the council pays £1 million a year in compensation to pedestrians who have tripped over.

Coun Tyrrell (Lab Sandwell) said: "The need to replace exhausted roads up and down the country is urgent, and that Birmingham has been offered the chance to do this needs to be grasped. I believe other authorities would give their right arm for the chance.

"To keep repairing roads is not an option. With West Midlands roads the worst in the country and deteriorating, it is a safety matter which we as a council have a duty to address.

"It costs £7 million a year to carry out reactive repairs whereas it will cost around £2 million to keep a renewed system in place."

Coun Tyrrell promised to address trade union concerns about the impact of PFI on jobs and wages, but was determined the scheme would go ahead.

He added: "I don't want to be down on record as turning down the opportunity to update our outdated transport system, and neither do my cabinet colleagues.

"We need to achieve an effective, integrated transport system allowing people a realistic choice between clean, reliable and safe public transport with private transport available to us but not subject to congestion or dangerous roads."

 

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