Roadblock - press release

BLUNSDON BYPASS GIVEN GO AHEAD DESPITE 124% PRICE INCREASE

Today Dr Stephen Ladyman, Road Minister, gave the go-ahead to the A419 Blunsdon Bypass [1], despite a 124% increase in cost since it was first approved in April 2002 [2].

This scheme ranked 13th in terms of cost escalation out of 83 schemes in the government's 'Targeted Programme of Improvements' (TPI) [3]. At first approval in 2002, it was priced at £29 million, but by February 2006, the most recent cost estimate was £65 million [2]. This was for just 2 miles of road. When the Highways Agency invited tenders in 2002, the price tag was £38 million [4].

Currently roads schemes in the TPI, approved since 1998 until April 2003, are experiencing an average of 67% cost escalation.

With road construction costs rising rapidly, and the tender prices and final out run costs usually significantly higher, the cost of the road could even be much higher than the current £65 million price tag. A Freedom of Information request to the Highways Agency in October 2005 showed that the cost of constructing a mile of motorway had risen from £23 million to £28 million in just 6 months [5].

The rising cost of the roads programme has not gone unnoticed by both the Liberal Democrats and the Conservatives [6]. Both parties have pointed out that the roads programme is now £1.5 billion over budget.

Rebecca Lush of Road Block said:

"The government is throwing good money after bad. The roads programme is now £1.5 billion over budget, with construction costs only forecast to rise further. It is time for the government to stand by its rhetoric on reducing travel and tackling climate change, by scrapping expensive road building and investing in the sustainable alternatives. By giving the go-ahead to the over priced Blunsdon Bypass, the Department for Transport is showing that it is not prepared to tackle cost increases. It is time for the Treasury to step in and call a halt to expensive road building."

Notes to Editors:

[1] DfT Press Release
http://www.gnn.gov.uk/content/detail.asp?ReleaseID=190488&NewsAreaID=139&HUserID=878,779,885,850,781,865,881,845,765,674,677,767,684,762,718,674,708,683,706,718,674

[2] Lords Written Answers 14 February 2006
http://www.publications.parliament.uk/pa/ld199900/ldhansrd/pdvn/lds06/text/60214w05.htm#column_WA157

[3] A table of the cost estimates of road schemes, with highest first can be viewed here
http://www.roadblock.org.uk/press_releases/info/TPI%20and%20local%20schemes%20Dec05.xls

[4] http://www.contractjournal.com/Articles/2002/10/02/35036/HA+notice+for+%c2%a338m+job.html

[5] Road construction costs revealed in a Freedom of Information request: http://www.highways.gov.uk/aboutus/documents/2.pdf

[6] Lib Dem press release - 30 Jan 2006: http://www.libdems.org.uk/news/story.html?id=9640&navPage=news.html
Conservative press release - 21 Feb 2006: http://www.conservatives.com/tile.do?def=news.story.page&obj_id=128046