Byers in talks over private contracts for roads

Stephen Byers, the Secretary of State for Transport, has told officials to draw up plans for the partial privatisation of the main roads in England.

The move, which could provoke fierce opposition from MPs, unions and motorists, would hand over planning and maintenance work to private companies for 30 years.

It comes at a sensitive time for Mr Byers, with his similar schemes for London Underground and National Air Traffic Control Services facing heavy criticism. But Mr Byers is keen to underline his reputation as a New Labour moderniser and believes the plan could improve safety and cut delays caused by roadworks.

A pilot project involving a single "maintenance area" is being planned by the Highways Agency, the Government's strategic roads arm, and is expected to see tenders invited in 2004. Under the scheme, companies that already work on big road improvements would be given a 15 to 30-year contract to do all the maintenance and improvement in a specified area.

A spokeswoman for the Highways Agency said that improvement schemes were already done by private contractors and stressed that the Transport Secretary would retain responsibility for the roads. The agency spends £700m a year on road maintenance.

But a similar project in Scotland, where responsibility for roads rests with the Scottish Parliament, led to complaints about poor maintenance and gritting. The number of default notices served on the contractors doubled as a result.

Paul Watters, the roads and transport policy director for the AA motoring body, said private franchises could be more efficient but warned the agency must retain overall control.