Legislation introduced into NSW Parliament this week to create a new state-owned tolling entity that will oversee a “reformed” toll road network has been welcomed by peak trucking industry bodies.
An independent pricing watchdog ‘IPART’ is also proposed to monitor toll prices and work towards establishing a new independent, industry-wide tolling customer ombudsman.
The new tolling body, known as NSW Motorways, will own and operate tollways not subject to private concession arrangements like the Sydney Harbour Bridge and Tunnel and the Western Harbour Tunnel and M6 Stage 1 when they are complete.
NSW Motorways would oversee any future revenue adjustment mechanism to protect private toll concessionaires from losses from a single, network toll – but also ensure any windfall gains that stem from toll reform go to the NSW public, rather than private operators.
“Today is an important step to creating a fairer toll road network in Sydney,” said NSW Roads Minister John Graham.
“We are taking back control of toll prices. We said we would waste no time in legislating towards the aim of a network-wide toll system, and that is exactly what we are doing today.
“These amendments will also enable oversight by the independent pricing watchdog, IPART, and improve how complaints and disputes are handled with the creation of a truly independent tolling Ombudsman. We need an Ombudsman that is visible, accessible and will be of help when people are under cost and debt pressure.”
Just what that means to the bottom line of trucking operators isn’t clear, but Road Freight NSW (RFNSW) CEO Simon O’Hara said the Minns government should be congratulated for acting on the independent Toll Review by Professor Allan Fels and Dr David Cousins.
O’Hara said RFNSW had been calling for changes to incentivise operators into using the toll roads for several years and is pleased to see Labor introduce the necessary checks and balances.
“The last thing we want to see is operators forced to use the back roads in a cost of living crisis,” O’Hara said.
“What was announced today is in line with what NatRoad has been calling for over six years. I’m pleased to see so many of our recommendations finally being taken up,” Clark said.
“The recognition from NSW minister John Graham that Sydney is the most tolled place on earth is also important.
“We can’t continue with a situation in which transport companies are spending millions on tolls, as was highlighted in a report this week. In the same report, one company reported spending over $7 million on tolls annually. Multiple operators are spending over a million.
“Our members don’t have a choice but to pay the tolls, and small businesses operating on tight margins do not have the economic bargaining power to simply pass on all higher costs.”
Introducing independent price monitoring is an important step but must be followed by further reform, Clark added.
“Ultimately we need a system where new tolls must be subject to independent regulation and the heavy vehicle toll multiplier is reduced to be more reflective of actual costs.
“We need to see multiple trip discounts, off-peak incentivised pricing and a clear commitment to reduce business costs and the cost of living.
“Unfortunately, even with the introduction of these proposed reforms, for now road users will still pay the same price at the toll booth.”
New data from NSW’s E-toll tags shows that the 1000 biggest toll spenders over the last financial year ranged from $46,932 per year to well over $7 million for vehicles using Sydney’s 13 toll roads.
The NSW Government predicts some businesses could face an annual toll bill of more than $25 million by 2060 under existing toll schemes.
With tolls expected to reach $106 for a single truck trip on the NorthConnex by that same year, Sydney’s tolling system is on track to stifle logistics networks and unfairly penalise essential service providers, said the Transport Workers Union
TWU NSW state secretary Richard Olsen said Transurban’s tolling system was putting a stranglehold on the essential services all Sydneysiders rely on.
“When businesses are forced to pay exorbitant toll bills just to keep goods moving, it’s clear the system is broken and urgently in need of reform,” Olsen said.
“What we’re seeing is a ticking time bomb. If tolls hit over $100 per trip as predicted, the impact on essential service transport providers will be catastrophic.
“Our economy simply can’t bear this burden and neither can the workers or businesses delivering critical goods to the people of NSW.”
The government and Transurban, which operates 11 of Sydney’s 13 toll roads, are reportedly in confidential talks over a possible restructure of the tolling agreement.