Businessman presents case for bridge-debt buy out proposals

The businessman behind ambitious plans to buy the Humber Bridge’s debt says he is convinced local authorities will “support the best solution for their residents.”

Malcolm Scott is going head to head with the Humber Bridge Board over rival plans to reduce the debt and tolls, with the Government due to make the final decision in November.

The Hull-based chartered surveyor was in Scunthorpe yesterday giving an update to North Lincolnshire councillors.

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A group of MPs who represent the region met Economic Secretary to the Treasury Justine Greening on Monday and were told the “status quo is not an option.” Mr Scott, senior partner of Hull’s biggest commercial property practice, says his proposals are “simpler, cheaper and quicker.”

He says he is feeling increasingly positive: “We’ve come a long way since the launch to have options put to the Government that make economic, social and political sense and are working hard to succeed with this once in a generation opportunity.”

His plan, revealed in February, would see the Humber Bridge’s £330m paper debt purchased for £100m. Tolls would drop to £1 after eight years spent paying off the £100m.

But his bid faced an unexpected challenge after the Humber Bridge Board made a last minute submission to the Treasury, also offering a £100m buyout and proposing cutting tolls from £2.70 to £2.50 from April next year and to £1.50 by 2020.

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Brigg and Goole MP Andrew Percy, one of the delegation to meet the Minister, said: “Justine Greening has said from the start and she reiterated it at the meeting that the status quo is not an option. Something will change, it just depends how significant it is.

“At the end of the day writing off £200m of debt is still a significant ask of the Government. The submissions from principles which Malcolm Scott has highlighted clearly offers us a good base for a possible solution.”

The Humber Bridge Board has proposed new arrangements, slimming the number of councillors down from 22 to 12, and including two business representatives.

But Mr Scott said that did not “meet the objectives of having a pro-active knowledgeable board that has the skills to manage the bridge in the 21st century.” His proposals would see the bridge run by a board of four councillors, one representatives from the voluntary sector, another probably from the NHS and four business specialists.

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He added: “You can’t expect 12 councillors to operate something like a bridge. You get into positions where tolls have to go up and in the next breath you are going to reduce them.

“We need to exhaust all the possibilities for reducing the period during which these oppressive tolls have to continue; you can’t do that if your experience is purely voluntary, purely private sector, or purely local authority.

“It needs a combination of expertise in each of these sectors.”

A major flaw in the bridge board plans, says Mr Scott, is its inability to borrow for the purpose of paying back the debt: “They have said they would have part of the Enterprise Zone money which is presumptuous, they would use local authority pension money, which is an approach we made earlier this year and seems unlikely and they mentioned a bond issue, which is part of the basis of our submission.”

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Concessions for people needing to get to medical appointments at the region’s cancer centre at Castle Hill Hospital, or other medical facilities, form part of his plan.

Despite the write-off talks, fares will still rise next month to £3 for cars for a single crossing.

Chairman of the bridge board Coun David Gemmell was not available. Bridgemaster Peter Hill declined to comment.

People will be offered the opportunity to invest from £5,000 at an annual return in excess of five per cent and potential toll concessions. More information at www.ourhumberbridge.com.