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Company urges councillors to kill Toll Tax plan

24/ 1/2008

ONE of Greater Manchester's biggest companies has written to councillors urging them to oppose a damaging congestion charge.

Peel Holdings, which owns the Trafford Centre and the site of the new Mediacity at Salford, where the BBC intends to move five of its broadcast departments, is on record to be opposed to the proposed road charging plan in return for a government grant and loan to improve public transport.

Last year they produced a survey which claimed that most people questioned about it were against the imposition of the so-called Toll Tax.

Now their letter to every councillor in Greater Manchester reinforces the company's opposition to the C-Charge, stating their berlief that a congestion charge could have a "potentially devastating effect on the Greater Manchester economy" - a stance this newspaper has taken since the Toll Tax was announced in January 2007.

The letter was sent at the start of this month and was signed by Rebecca Eatwell, of lobby firm PPS Group, `on behalf of Peel Holdings'.

Peel's letter goes on to explain that a `number of surveys' had shown the public and business community were not in favour of the congestion charge, and it ended: "I hope you will take appropriate steps to ensure it is not introduced."

AGMA have submitted a bid for £1.2bn to the government's Transport Innovation Fund (TIF), plus permission to borrow £1.8bn more. The money would pay for improvements to trams, trains and buses - but the bid includes plans for a peak-hour congestion charge of up to £5 a day.

Sir Richard Leese, leader of Manchester City Council - the main driving force in favour of the Toll Tax and the bid for transport cash within the Association of Greater Manchester Authorities - in reply has acccused the company of playing politics.

While acknowledging Peel Holdings to be `perfectly entitled to make representations to local councillors about anything they wish', Cllr Leese, who represents Crumpsall Ward, which includes part of Blackley, goes on: "It seems to me that if their views are to be taken seriously they need to be evidentially based and balanced." He said he believed the Peel letter failed to meet "these fundamental requirements".

Sir Richard, who is also vice-chairman of AGMA, repeated his argument that jammed roads could cost Greater Manchester as many of 30,000 of the jobs it is expected to create in the next decade.

He said: "I am concerned that Peel appears to be supporting overt political activity, although not declaring so publicly, and does so to promote a false and unsustainable view of the nature of AGMA's policies. Would not it be better for Peel to produce independent evidence to justify its concerns?"

A Peel Holdings spokesman said: "Peel has always been quite open about its position on this matter, and as a business believes the vast sums of money spent on the TIF bid are unjustified.

"AGMA have said that the scheme will not damage the local economy, but have refused access to their information without the imposition of an unreasonable and restrictive confidentiality agreement.

"This is a matter which needs to be debated - something AGMA appears to want to avoid."

The row comes at a crucial time for the TIF bid. Greater Manchester is likely to hear within months if it has been successful. Three of the region's 10 councils have withdrawn support for the scheme. And if one more say `no' the entire bid could collapse.