Highway posers
No toll or a cheap rate?
THE impending takeover of four expressways in the Klang Valley has spiced up conversations on a subject that has long been emotive. News of the potential acquisition is big. But, it is a small step in the government’s efforts to abolish toll in stages and ultimately alleviate the high cost of living for the people. The government has already commenced talks with Gamuda Bhd, the Bursa Malaysia-listed company that owns Lebuhraya-DamansaraPuchong, Sistem Penyuraian Trafik KL-Barat, Lebuhraya ShahAlam and the SMART Tunnel. The toll mechanism would be abolished upon successful takeover of the highways. This, however, comes with a caveat. A “congestion charge” would be introduced. Motorists would pay toll for six hours of the peak period daily.
There are questions, though. Why is the government taking over the four private-owned highways? Why not simply abolish toll, especially those operated by Plus Expressway Bhd, which has the largest network of highways, including the North-South Expressway? Taking over the toll companies does seem more time consuming than renegotiating with them to come up with reasonable rates. Last December, Finance Minister Lim Guan Eng disclosed that the government would have to fork out RM972.75 million in compensation to 21 highway concessionaires for them not to raise toll this year. However, a 2010 study estimated that overall costs to take over all highways is RM383.3 billion. The amount comprised costs to take over the companies and to abolish toll collection. Perhaps, the government could instead look into “unfair deals” and review their contracts to get rid of abuse and lopsided terms. Or, introduce special taxes on “stubborn” toll operators, similar to the special levy imposed on gaming, cigarettes and liquor companies.
It was only recently, that Works Minister Baru Bian talked about a study on toll collection, which may only be completed in another few months. The move would assist the government in obtaining data and recommendations, plus an analysis on the reduction of toll for the short, medium and long term. Perhaps, the government has decided to speed things up with this latest effort, following pressure by the opposition and the high cost of living being a hot topic. Fulfilling the election promise would not be cheap, and the government would not be able to completely appease the people. The “congestion charge” has received more negatives than positives, simply because they still have to pay toll during the peak period. Commuters, however, would be at ease knowing that the move would help spread out traffic. Skeptics may say, only “Count Dracula and his ilk” would benefit from the “free-toll” hours of between 11pm and 5am. But the move can lead to better flow of traffic, especially involving heavy trucks. The government would also have to navigate the tough terrain with highway operators. We don’t know for sure if there are clauses in the concession agreements allowing for the reduction or abolishment of toll. Concessionaires have loans to service and other bills to pay, meaning big compensation will come into play.
Prime Minister Tun Dr Mahathir Mohamad, late last year, said the only way to have freeways and no toll was to raise the price of petrol. Plainly, that would be unthinkable. Should we not just contend with significantly reduced toll rates?
Taking over the toll companies does seem more time consuming than renegotiating with them to come up with reasonable rates.