A report into the impacts of Sydney’s road toll privatisation has been released, with the “poorly-functioning patchwork” of the region’s network set to cost motorists $195 billion over the next 35 years.
The report follows the release of findings from an inquiry into the much-maligned construction of the Rozelle Interchange, where it was found the multi-billion-dollar project was completed despite it being against community interests.
It notes that lack of a unified tolling system across the region has created complexity, inefficiency, inequities and unfairness to all road users, with those in Western Sydney suffering the largest financial impact.
Sydney is the world’s most tolled city, and the current government has vowed to end the “toll mania”.
“Toll reform is critical for Sydney and this is a once in a generation chance to address this issue,” Roads Minister John Graham says.
“Former governments have an attitude of set and forget on tolls, but the result is now a combined burden of $195 billion to be paid out to 2060 and a city that is more congested and more divided.
“Sydney is a place in which people make choices about where they work based on the need to avoid paying tolls. The problem grows each year. Over decades, it will become unsustainable.”
NSW treasurer Daniel Mookhey says the report is another step in the right direction of reforming the city’s tolls.
“Relief began with our $60 toll cap. Today’s report is an important step in reforming an unnecessarily complex and costly system,” Mookhey says.
“Every year motorists are paying $2.5 billion in tolls. Without reform the burden will continue to land heaviest on those who can least afford it.”
Key recommendations from the report are:
- Tolls should be based on a declining distance basis charged on a per kilometre basis but with the per kilometre rate declining the greater the distance travelled. This would deliver greater fairness to motorists in Western Sydney.
- An infrastructure charge should be introduced for parts of toll roads that have been costly to build e.g. ventilated tunnels, Sydney Harbour Bridge.
- Two-way tolling on the two current Harbour crossings and the Eastern Distributor, with this additional revenue gained being put into the lowering of tolls on the remainder of the network. This will also ensure a consistent tolling and traffic integration approach when the Western Harbour tunnel opens around 2028.
- Decisions on toll setting should be overseen by the Independent Pricing and Regulatory Tribunal (IPART).
The report’s executive summary states any toll reform should be enacted alongside the recently announced Freight Policy Reform Program to improve the “safety, sustainability and productivity of freight transport”, pending the outcomes of the current two-year rebate trial.
The Transport Workers Union (TWU) also responded to the toll review, welcoming former ACCC chair Allan Fels’ findings as a result of the investigation.
It is in favour of recommendations to establish a government-owned special authority – a NSW Motorways entity – tasked with the responsibility of improving outcomes and transparency for motorists and to strengthen government and accountability on the toll network.
The TWU believes the potential introduction of heavy vehicle multipliers on Sydney’s harbour crossings would significantly increase costs to trucks and owner-operators using these key gateways.
“Lowering the toll multiplier from three times to two times for middle class heavy vehicles recognises the essential service these drivers provide,” says TWU NSW/QLD state secretary Richard Olsen.
“This change would offer much-needed financial relief to owner-operators already struggling with the cost of living.
“The Independent Toll Review has laid bare the extent to which private company profits have been prioritised over that of motorists. With billions projected in tolls over the next 40 years, the need for reforms are clear. Over half of this amount coming from WestConnex concessions highlights the urgency for a fairer system.
“We call on the NSW government to afford further consideration to the needs of the road transport industry and heavy vehicles operating to create a more egalitarian toll network.”
A full copy of the report is available here.
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