Image: Professor Allan Fels, former Australian Competition and Consumer Commission (ACCC) chairman. Mick Tsikas, AAP
by ASPEN ABNER
The findings of an independent review by former Australian Competition and Consumer Commission (ACCC) chair Allan Fells and economist David Cousins has revealed that NSW motorists could end up paying $123 billion in road tolls over the next forty years.
The review suggested that commuters who use the Sydney Harbour Bridge and Tunnel and the Eastern Distributor be charged a two-way toll for using these routes.
The additional revenue raised would be used to lower tolls on other roads. This would mean that trips between Penrith or Parramatta and the CBD would be almost $5 cheaper each way and trips from Campbelltown would lower by more than $13.
This added charge would mostly affect traffic for North Shore, northern beaches and eastern suburbs residents. Currently, only southbound commuters on the Harbour Bridge and Tunnel and northbound journeys on the Eastern Distributor are charged.
There would also be an additional “infrastructure charge” on certain trips that benefit expensive infrastructure components such as ventilated tunnels and the Harbour Bridge.
Another proposal is to reduce tolls on motorcyclists and towed recreational vehicles to reduce congestion on non-tolled roads.
“Sydney tolls are too high, too unfair”
“Sydney tolls are too high, too unfair and an ever-increasing burden on motorists,” Professor Allan Fels said.
Professor Fells also said the toll road system in NSW suffers from a lack of pricing competition.
The government has been called on to establish NSW Motorways, a state-owned organization to control tolls, giving it the power to set prices for tolls with oversight from the Independent Pricing and Regulatory Tribunal (IPART).
This will also enable the government to become a competitor against toll road operators, such as Transurban, a major toll company.
Transurban operates 11 of the 13 toll roads in NSW.
Professor Fells noted, “Unlike most businesses, once a toll price is established, toll operators have a monopoly and toll prices are free from any price competition.”
“There has been a tendency to set modest looking tolls at the outset when public attention is high and to heavily backload them via extended duration and escalation factors.”
He said that Transurban would not be hurt financially because motorists turn to non-tolled roads due to high costs. With lowered tolls, motorists would be encouraged to use lower-priced toll roads.
“Sydney is the most tolled city in the world”
NSW Premier Chris Minns acknowledged the road tolling system is unfair, but says that fixing it would be a major challenge.
“Sydney is the most tolled city in the world. And now we know trying to fix it requires a significant reset of the tolling network,” said Minns.
“The toll burden is hitting families who can least afford it most, particularly parts of western Sydney that have fewer public transport alternatives to getting in the car and paying tolls.”
Minns notes that one-way tolls on the government-owned bridge and tunnel have skyrocketed. The price has jumped from 20¢ to $4.20 since 20019. Also, tolls on the privately operated M2 increased dramatically from $4.40 to nearly $10.
Minns said that he will consider two-way tolling if it lowers the cost of tolls for the majority of drivers who use the roads daily.
“The report calls for it, but quite literally I’ll cross that bridge if we come to it,” Minns said, adding that it will take some time but the report outlines options for the government to consider.
Roads Minister John Graham said he is open to reform, saying, “I welcome the offer by motorway concessionaires to work with the government on a new, network approach to tolling.”
Before establishing a government-controlled toll pricing, Graham says that the government’s first step is to negotiate with Transurban for reform.
Transurban CEO Michelle Jablko said that the company would work with the government.
“The government has made it clear contracts will be honoured and that its preferred pathway to reform is working with concessionaires to find a solution,” she said.
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