1. www.racfoundation.org1 RAC Foundation IPPR Road Pricing Seminar 26 October 2005 The Motorists Viewpoint David Holmes Chairman RAC Foundation

2. www.racfoundation.org2 The case Demand for road space must be met or managed. At present it is managed inefficiently. Fuel duty. Parking charges. Congestion. Rational framework for transport pricing and investment.

3. www.racfoundation.org3 Building consensus Average motorist pays about £900 pa in fuel tax, vat and ved. Road pricing will create gainers and losers: town/country; north/south. Perceptions wont be accurate.

4. www.racfoundation.org4 Ask the motorist Only 1 in 10 trust government. 60% support if: Proceeds go to transport. Independent regulator. Less support from: Lower incomes. Higher ages. Part-time workers..

5. www.racfoundation.org5 Are opinion polls useful? What will change in 10-12 years? Are we clear what we are asking people about? At what level are people responding ?

6. www.racfoundation.org6 What we know we dont know Level of charges: how set; how vary? Pricing structure. Objectives: raise money? Discourage car travel? Marginal social costs? Or what? Where will the money go? Payment systems. Costs of equipment.

7. www.racfoundation.org7 Effects on people and households Large/marginal? Move house/job/schools? Time for adjustment? Social exclusion Lowest income group spends 24% of household budget on motoring.

8. www.racfoundation.org8 Where do we go next? 1 More modelling to illuminate gainers and losers, eg Car dependence by location/ job/ income. Complex journeys. Ability/willingness to adjust.

9. www.racfoundation.org9 Where do we go next? 2 Build political / public consensus on principles and rules eg Charges will be objectively set. Powerful regulator/auditor. Cap; restraint on monopoly power. Clear indication on charges and how to avoid. Proceeds to relevant transport purpose. Future of fuel duty. Privacy.

10. www.racfoundation.org10 Conclusion Build support step by step – otherwise no hope of majority support. Listen to people. Vision of better transport system. Local pilots must follow principles and rules. Be honest.