Financing the M4

2nd August 2011

'Following the recent election of Andrew RT Davies AM to the position of leader of the Welsh Conservatives group in the National Assembly, the Party is currently re-assessing spending priorities. Bearing in mind the enormous economic and social opportunities that are presently being lost by people and businesses throughout South Wales as a result of the frequent congestion in and around the Brynglas tunnels, I strongly expect the Party to put forward fully costed proposals in the near future. I am having discussions with my colleague the Shadow Minister for Transport Byron Davies AM this week on behalf of the many angered constituents and companies let down by successive Labour-led Assembly Governments which have failed to tackle traffic problems in the Newport area. Like the many constituents who have contacted me over the last week I do not believe the new dual carriageway through Llanwern steelworks will provide a long-term solution to the issue, and expect the Welsh Conservatives to fight future elections pledging to build a fully funded M4 relief road with detailed spending plans released in due course.’

In addition to changing spending plans according to shifting policy priorities, there exists a number of additional sources of funding the construction of an M4 relief road including:  

1)    The new road could initially be a toll road. The Severn Bridge Tolls end in 2016 meaning there would be an 8 year lead in time for a new stretch of motorway. 

2)    Prudential borrowing by the Assembly Government to finance the scheme. (A Calman-type commission to explore presently) 

3)    Record profits by Oil & Gas companies mean record receipts for the Treasury. The UK Treasury could be approached for a special grant contribution towards the M4 relief road. 

4)    Significant changes can be made to designs previously submitted for the M4 relief road to bring down costs. For example, the bridge listed in the previous plan could be considerably scaled down. There is no need to have a bridge at the previously suggested height because since the opening of the Southern Distributor Road Bridge no tall traffic has travelled up the River Usk. No Wharfs remain and were compensated as part of the construction of the Southern Distributor Road. Lysaghts Wharf is well below the line of the Southern Distributor Road.