AN inquiry into proposals to increase tolls to the Tyne Tunnel was told yesterday that the increase was needed to pave the way for a new river crossing.

The hearing, at Newcastle, was ordered by Deputy Prime Minister John Prescott after objections to plans by the Tyne and Wear Passenger Authority to increase tolls from 80p to £1 for cars and from £1 to £1.20 for lorries.

Under the proposals, regular users would get a ten per cent discount for the first time.

Protestors argue it would be unjust for car users to have to pay debt charges on a tunnel built more than 30 years ago.

Stephen Sauvain QC, representing the passenger authority, told the hearing cash was urgently needed to help start the construction of a duplicate tunnel, to ease growing congestion.

The new tunnel would be constructed and operated under a public-private partnership. About £9.5m was needed for land and property, including the relocation of a school.

Mr Sauvain said failure to raise the cash through the toll increase would result in all working reserves being used up and the passenger authority falling into heavy debt.

It could also delay progress of the second tunnel by several years, he said.

Protestor Stan Smith asked Government inspector David Woodrow to recommend that the passenger authority be asked to explore other avenues of financing the operation.