The ‘non-negotiable’ Sydney tolling laws Minns won’t back down on

The Minns government will not scrap refunds for motorists who use the M5 motorway in Sydney’s south-west or its new $60-weekly toll cap,despite a highly anticipated review into the city’s road network finding that toll relief is inadequately targeted and underutilised.

Theinterim independent review,led by former competition watchdog chief Allan Fels,found that toll reform is preferable to relief,which the report says is expensive and more likely to be claimed by drivers from middle and high-income households.

Fels released his report on Monday with a range of recommendations,including using legislation to allow the government to take back control of tolls and giving the independent pricing regulator “significant oversight” in setting the price of tolls.

The report also recommended charging motorists less the longer they drive on toll roads,and two-way tolling on the Sydney Harbour Bridge,Harbour Tunnel and Eastern Distributor.

Premier Chris Minns did not commit to any recommendations but immediately ruled out changes to the M5 cashback scheme or its toll cap,which was an election commitment.

The M5 cashback scheme was introduced in 1995 by former Labor premier Bob Carr as a face-saving measure after his government could not honour an election promise to axe tolls on the motorway.

“It[the cap] is fully funded for the next two years. It’s an important part of an interim measure so that motorists in western Sydney know that they’re not going to get a raw deal while we work through the mess that’s been left to us by the previous government,” Minns said.

Any changes to tolls or relief measures needed to be considered through the prism of whether “the vast majority of voters would be better off as a result,” Minns said.

“That wouldn’t be the case when it comes to the M5. The quantum that we’re putting in every 12 months is so extreme that if it was taken out of the system,there’s no question that toll road users in south-western city would be behind.”

Minns said he was “really conscious of not putting a timeframe” on when reform measures would be implemented,insisting the government would take time to consider the best path forward.

NSW Premier Chris Minns says he won’t rush the issue of road tolls.

NSW Premier Chris Minns says he won’t rush the issue of road tolls.Kate Geraghty

However,the government is unlikely to wait until Fels delivers his final report in six months before it starts serious negotiations with operators,including tolling giant Transurban,around the legislation required to set up a State TollCo,a stand-alone entity to set network tolls.

Opposition Treasury spokesman Damien Tudehope labelled the interim tolling review “underwhelming”,saying the conclusion was road users were “going to get new tolls,higher tolls,and more bureaucrats”.

“The worst outcome,of course,would be if we stop,in fact,delivering new road infrastructure for the people of this state. You can ask any person in Sydney at the moment about the biggest bugbear of their life,and it is congestion,” he said.

“It is a significant impact on people but the primary purpose of the government should be to ensure that people are able to spend more time with their family and less time in their car.”

Professor Allan Fels has laid out plans for a major shake-up of Sydney’s patchwork of toll roads.

Professor Allan Fels has laid out plans for a major shake-up of Sydney’s patchwork of toll roads.Kate Geraghty

Tudehope said the “unfounded criticism” of Transurban’s monopoly over Sydney’s tolled roadways ignored commercial tenders were “open to all commercial companies to tender for the delivery of a road system”.

But he warned the government against “interfering in contracts”,saying the only avenue to do so was by agreement with Transurban.

Alexandra Smith is the State Political Editor of The Sydney Morning Herald.

Max Maddison is a state political reporter at The Sydney Morning Herald.

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