Road tax puts Ken in driving seat

KEN LIVINGSTONE'S plan for London's roads is a sensible, free-market solution to traffic jams. The Tories, who run the City of Westminster, oppose it - possibly on both grounds.

The supply of road space is limited and must be rationed. There are only three ways of doing this - chaos, permits and price. Chaos we have and it is costly, frustrating and unpleasant. Permits are undemocratic. They would increase political patronage and encourage corruption. Price is the only decent and sensible route.

There is only one reason for doing something - that it is the right thing to do. There are, however, many reasons for not doing something and, since the Mayor is doing the right thing, these are being rolled out one by one in the debate.

Some do not like the precedents the plan will create. They fear its success. Using the price mechanism to solve problems might become fashionable again. Education is a prime example. In America, the administration wants to introduce education vouchers. Surveys show that poorer parents welcome this idea, despite its Republican backing. It gives them the power to choose where to send their children. Teachers are against the proposal for the same reason.

Politicians fear such precedents. If they act justly and sensibly today, voters may expect them to do so again. But lifting hopes only to dash them would be unkind, so our masters seldom raise them.

Another view is that the time is not ripe. In the future, electronic spies in the sky will be able to debit drivers' bank accounts directly, being careful not to charge essential workers such as postmen, nurses and politicians. By then, video conferencing should be so advanced that nobody will need to travel anyway.

Others claim that charging road users £5 a day will not ease congestion. They may be correct. The right price could be £10 or even £20 a day.

By being sensible about a public issue, and thereby breaking his duck, Livingstone will make himself unpopular. He will not be praised if his scheme goes awry, or indeed if it does not.

GOVERNMENT in Britain seems to have become dysfunctional under the past two Prime Ministers - John Major and Tony Blair. If the Mayor shows it is possible to manage public transport efficiently, he will be deeply disliked by the Cabinet. Judging from the 'applause' that greeted Stephen Byers' refusal to resign, he will not be popular on Labour's back benches either.

But road pricing will not only benefit the economy of London, by reducing the costs and health hazards of congestion, it will also produce a great deal of revenue.

Having a lot of other people's money at your disposal does not make you rich, but it does make you powerful. Livingstone has already decided that NHS doctors among others will not have to cough up his levy. This presents him with great scope for patronage.

If the Cabinet has any sense, it will take this ability away from the Mayor. Patronage means power and New Labour likes to keep power to itself.

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