The Association of Greater Manchester Authorities (AGMA) is poised to commit the region to widespread road charging to pay for improvements in public transport.

Road charging will be very damaging. Common sense says it will increase costs for people and business. Acting as a 'guinea pig' for the UK puts the region at a disadvantage. Greater Manchester is on a fantastic roll. It has become a great place for business to invest and for business to be. It should not become a high cost region and put this momentum at risk.

The current road charging proposals are flawed and we do not support them. However, rather than pointing out the gaping holes, there is a viable alternative.

AMGA should sell MAG, its airport group of companies, which would potentially raise more than £7bn for investment in public transport, more than double the current proposal, and create a massive boost to our economy without the need for risky and damaging road charges.

AGMA owns MAG, which owns Bournemouth, East Midlands, Humberside and Manchester Airports. Bournemouth Airport has just thanked AGMA for "committing to an investment of £32m" and East Midlands has recently announced significant expansion plans. It is absurd that the AGMA are investing in the airports and economies of Bournemouth, Derby and Hull while at the same time proposing a congestion charge here.

The sale of MAG could raise around £3bn for AGMA which, in conjunction with private sector funding, would form at least a £7bn public transport funding package. This is more than double the current proposal and would allow public transport improvement on a massive scale: a fully connected, criss-crossing, public transport system for the entire region rather than the current flawed proposal which focuses only on improving journeys into or out of Manchester city centre.

What a huge boost to the regional economy this would provide. Greater Manchester could have a world-class public transport network which would attract more business, more investment and more jobs for the region. It would make this region the most competitive in the UK rather than playing Russian roulette with the local economy.

There is no better time. Prices for airports are at record levels. No other local authority in the UK retains total ownership of a major airport (let alone several airports in other parts of the country). Under private ownership Manchester Airport would flourish as it would have greater access to capital and could expand more rapidly.

The London congestion charge zone has just been doubled from 8 to 16 square miles. AGMA's Phase 1 proposal is six times bigger, covering approximately 100 square miles and will go much wider at Phase 2. Therefore AGMA must use the resources presented by this fantastic opportunity wisely. The government has already made its view clear that Metrolink is a hugely expensive, outdated and inflexible public transport system and the average cost of the expansion plans is huge, at least £50m per mile. There are better systems available and Peel would welcome a proper review to find the optimal, best value for money solution for Greater Manchester.

Peel have been criticised for pointing out the problems and not providing a solution. Here is an opportunity which can fund a world-class public transport system for Greater Manchester rather than its city centre.

We urge you not to waste this fantastic opportunity for Greater Manchester.

John Whittaker, Chairman

Andrew Simpson, Managing Director

Peel Holdings, the Trafford Centre

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