Professor Allan Fels has laid out plans for a major shake-up of Sydney’s patchwork of toll roads.Credit:Kate Geraghty
TollCo would operate independently,and in the longer term the state’s pricing regulator would review the level of tolls.
Fels said legislation was needed to make tolls more consistent. Too many parties such as investors,debt issuers and banks were involved to allow that to happen voluntarily.
“The government will have to set up a mechanism to bring about the compensation that would lead no toll road[operator] worse off or better off,” he said.
“We’re not proposing to rip up contracts,but you do need legislation to amend things sufficiently.”
Transurban chief executive Michelle Jablko said the company was pleased some ideas it had provided to the government were included in the report,and that the review recommends existing contracts be honoured.
“We will take some time to work through the details,and we think there is opportunity to continue to enhance value for customers,” she said.
However,Infrastructure Partnerships Australia said unilaterally legislating to alter existing contracts was reckless and should be ruled out.
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“Today’s report has a spectrum of suggestions ranging from sensible,to muddled through to foolhardy,” chief executive Adrian Dwyer said.
“Some of the suggestions in today’s report risk creating a trust deficit at a time of peaking infrastructure demand and increasing fiscal constraint.”
The Fels review proposes a unified pricing structure across all of Sydney’s toll roads,and an initial reset to introduce fairer,simpler and more efficient charges.
Modelling shows the average tolls paid by cars and motorcycles under Fels’ network tolling plans would be $7.33 a journey in 2026,compared with $8.50 if no changes occur. If a subsidy was introduced to lower tolls for all motorists,the average price would be $6.19. The tolls will include an infrastructure charge ranging from 50c to $6.
Fels has also recommended reduced charges for motorcycles and caravans to reduce congestion on non-tolled roads.
Sydney is one of the world’s most-tolled cities. Among the serious flaws identified in the interim report are the monopoly by Transurban on the toll road system and inadequately targeted and under-utilised toll relief schemes.
Committee for Sydney transport policy manager Harri Bancroft said two-way charging on the Harbour Bridge was a smart move to reduce car traffic in the Sydney CBD.
“At the moment,it’s cheaper for people to drive back and forth to the city during peak periods than catching the train or bus,” she said.
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Fels’ report highlights that agreements often favoured the private sector,such as ensuring that if motorway traffic was less than had been expected,the operator would be topped up by governments.
The report calculates that Sydney motorists will pay $195 billion in tolls by 2060,largely due to previous governments prioritising the financial concerns of tolling giants over managing traffic on the city’s congested roads.
Roads Minister John Graham said last week that the government would not proceed with a shake-up unless drivers were “absolutely” better off under a reform of the tolling system.