PM wants toll hike review

In a surprising turnaround the prime minister has called for his Cabinet to review the new toll rates announced by his government today for five major highways.

Datuk Seri Abdulah Badawi’s remarks will raise the spectre of another flip-flop by the government, and suggests the Barisan National (BN) government has one eye on the up coming by elections.

He said the Cabinet should consider other methods to defer the toll hike as the current economic conditions were “not a good time.”

Just today, Works Minister Datuk Seri Mohd Zin Mohamed announced toll rates will go up at five major highways from March 1.

The government's announcement has already drawn sharp criticism from the Pakatan Rakyat, and is not likely to be received kindly by voters bracing themselves for the full impact of a global recession.

Mohd Zin had said the government had no choice but to allow the toll hike because it was stated in the concession agreements.

Toll rates were supposed to go up last year but the government had asked concessionaires to defer the hike until this year.

With any further deferment, the government would have to pay concession holders compensation .

Opposition leader Datuk Seri Anwar Ibrahim called the hike an unreasonable burden placed on ordinary Malaysians in light of the gloomy economic outlook.

He also took potshots at the BN government for favouring businessmen.

The announcement of toll hikes follows the revelation two days ago that the government was now subsidising YTL’s Express Rail Link service to KLIA because of concession terms which appear to extend favourable terms to the train operator.

Besides the toll and ERL concessions, the federal government is also embroiled in a tussle over the mandated takeover of private water companies in Selangor whereby concession holders are demanding to raise rates or be paid high compensation.

The BN government will now have its work cut out trying to defend accusations and answer questions about the cosy deals with businessmen which were mostly made during the administration of Tun Dr Mahathir Mohamad.

From March 1 the North-South Expressway, Sprint/Kerinchi/Damansara Link Highways, Ampang Elevated Highway, Sungai Besi Highway and the New Pantai Expressway will raise their toll charges.

Users will pay five per cent more to use the North-South Expressway.

The Sprint/Kerinchi/Damansara Link, which is already choked with traffic, will charge between 30 sen and 50 sen more.

The Sungai Besi Highway will see an increase of 10 sen, while users of the Ampang Elevated Highway and the New Pantai Expressway will pay an extra 50 sen and 40 sen respectively.

“The increase was actually due in January last year but we had postponed it until now. This means the government has been paying compensation for 14 months,” the minister said today.

-MalaysiaInsider