What do politicians really need to know?

1
What do politicians really need to know?

• Jan A. Martinsen
• Norwegian Public Roads Administration

Presentation on TRBs International symposium on
road pricing Key Biscayne, Florida November 19
22, 2003
2
Motivation

• Norway is probably the largest country in terms
  of user charging schemes, relatively speaking
• Prior to their implementations, these scheme are
  subjected to decision making at different
  political levels
• Lessons can be learnt on what politicians
  really need to know as a premise for sanctioning
  road user charging schemes. What they want to
  know might not be the same.

3
Map of Norway With Tolls Plotted

• Population 4,4 million
• Number of cars 2,3 million
• Length public roads 91 545 km
• Total road funding 1,6 billion USD
• Road construction 650 million
• 45 toll schemes operating
• Toll payment 460 million USD
• Number of people killed 300
• People killed pr million vehicle
  km is 0.008

4
Key aspects of Toll Road projects

• All user charge projects are based on local
  initiative and approval only
• The period of toll collection is normally limited
  to 15 years
• Normally 50 of construction costs must be
  financed by tolls
• All projects must be approved by Parliament
• All financially sound projects are approved
• Those paying toll must also benefit

5
Toll financing and road pricing are not the same !

• Toll rings on existing roads to pay for new
  infrastructure is a unique success in Norway
• The purpose of tolls in Norway is to raise funds
  for infrastructure investment, not for regulating
  traffic. Time differentiated charges are allowed
  but little used.
• Road pricing in Norway means congestion charging
  with the purpose to reduce traffic during peak
  hours
• The Norwegian Parliament has recently made road
  pricing possible, but no road pricing schemes has
  so far been implemented
• Road pricing and toll financing are not allowed
  at the same time in the same area

6
The politicians role in planning and decision
making

• Very strong political influence on road projects
  in Norway, even from Parliament
• Politicians at the national level allocate funds,
  approve all toll and road pricing schemes, decide
  transport policies and prioritise trunk roads
• County politicians prioritise ordinary national
  roads even when funded by Parliament, allocate
  funds for county roads and public transport
• Local politicians decide on land use and road
  location and alignment and suggest user charging
  schemes

7
How to deal with congestion

• The goal is to ensure acceptable mobility for
  people and goods
• Measures must be designed according to level of
  congestion or city size
• Congestion can either be accepted as normal part
  of city life, or be reduced by
• - Adding more road capacity
• - Improving public transportation
• - Restriction on car use such as road
  pricing, parking

8
Do we need road pricing in Norway?

• There are congestion in Norwegian cities, but
  only in Oslo, Bergen and maybe Trondheim
• Congestion is confined to two hours in the
  morning and evening rush hours
• The level of congestion is small in an
  international context. Average delay on selected
  routes in Oslo is 9 minutes with 23 minutes on
  the most congested route
• The crucial question is whether congestion is big
  enough to get political accept for road pricing

9
Bridging the information gap

• The majority of people are opposed to user
  pricing. They feel they already pay too much
• Politicians may accept it as the only realistic
  solution knowing the alternatives
• Essential for politicians to explain purpose and
  benefits to voters. Better information gives more
  positive attitudes
• Oslo in 1990 was a success story due to good
  information and extra public funding

10
Arguments for and against road pricing

• For road pricing
• Will reduce congestion and improve the
  environment
• Remaining traffic will gain in travel time
  savings
• Income may also be used to improve public
  transport

• Against road pricing
• Equity problems
• Motorists pay high taxes already
• Privacy issues
• Downtown businesses will suffer
• Technical solutions?

11
Attitudes to the toll ring in Oslo
12
Converting toll rings into congestion pricing
schemes

• This is the main user charge issue in Norway
  today
• Political commitment to remove toll rings in
  2005/7
• Projects for billions still not funded. Extension
  in time seems possible in Oslo. Hot debate in
  Trondheim
• Transport authorities recommend road pricing as
  part of transport policy in Oslo
• Analysis show that it is possible to avoid
  further traffic growth by combining many measures
• Unwise to take down toll rings without doing
  anything else as traffic will increase and
  funding decrease

13
Converting toll rings into congestion pricing
schemes, cont

• Conservatives that understand the law of supply
  and demand still oppose paying more during peak
  hours ?
• Conservatives that traditionally favor business
  and middle class, oppose road pricing, and
  focuses now on equity and the poor !
• Socialists favoring the poor support road pricing
  ! Contradiction ?
• Conservatives want to reduce burden of taxation
  and favor road investment, even in cities.
  Socialists want to reduce traffic in cities to
  avoid investing in new roads

14
Converting toll rings into congestion pricing
schemes, cont

• Cities needs revenues for further investment in
  roads, they need congestion pricing to ease
  delays and they need better funding for public
  transportation
• Restrictions about not combining tolls and
  congestion pricing makes this very difficult
• Amendments to existing laws to obtain more
  flexibility are strongly recommended
• Surveys show that 41 mean toll ring should be
  taken down regardless, but 36 supports
  extension if the revenue goes to public
  transport.

15
So what do the politicians really need to know ?

• Our experience tells us the following
• Public acceptance is alfa and omega for
  politicians to sanction pricing schemes. However
  politicians are ahead of voters in knowledge
• They must gain something from taking unpopular
  decisions, e.g. more money to spend locally.
  Extra public money is essential !
• In Tønsberg town the politicians in favor of a
  proposed cordon ring lost majority the recent
  election
• To obtain support for road pricing, revenues must
  also be spent for the benefit of car users

16
So what do the politicians really need to know ?

1. Politicians needs to know how pricing will effect
   local community, business, land use, environment
   etc
2. Politicians must understand the alternatives to
   road pricing, e.g what happens if nothing is done
3. Politicians must deal with unpopular reactions
   and be able to explain the benefits of pricing to
   the public
4. Local politicians must be shown success stories
   from other cities
5. Local politicians need a better understanding of
   professional advise. Economic theory should be
   translated into simple language

17
So what do the politicians really need to know ?

• And finally
• They must not focus on unpopular pricing issues
  shortly before local elections !
• Sometimes local politicians may want national
  politicians to take unpopular decisions for them

18
Thank you for your attention !

• For more information, pleas contact
• Mr Jan A Martinsen
• Leader of Transport Analysis section
• Norwegian Public Roads Administration
• E-mail jan.martinsen_at_vegvesen.no
• Phone [phone]
• Mobile [phone]