The German government was left with a major logistical headache and a €6.5 billion hole in its budget yesterday, after it was forced to abandon plans to introduce a new computerised motorway toll system.
The German government was left with a major logistical headache and a €6.5 billion hole in its budget yesterday, after it was forced to abandon plans to introduce a new computerised motorway toll system.
After months of delays and technological problems, Berlin yesterday tore up the contract with the consortium charged with developing the system, Toll-Collect, comprising companies such as Daimler-Chrysler and Deutsche Telekom.
It was a costly and embarrassing end to one of the government's prestige projects, and a further setback to the Chancellor, Mr Gerhard Schröder, already under fire for his stalled economic and social reforms.
His transport minister, Mr Manfred Stolpe, announced he was tearing up the contract early yesterday morning after 11 hours of last-minute talks failed to produce an acceptable compromise.
The toll system envisioned a high-tech network of dashboard boxes communicating with the GPS satellite system to calculate the toll owed based on Autobahn usage.
The system was supposed to be introduced last August, and then last November.
Yesterday, the consortium said the system would not be fully functional before 2006 - an unacceptable delay to the German government. It is losing €156 million a month since scrapping the old toll system and had hoped to collect around €2.8 billion a year using the new system.
"One thing remains clear - we need the money," said Mr Stolpe. He said he would reintroduce the old tolling system while he considered offers from other toll operators.
An Irish Road Haulage Association (IRHA) spokesman welcomed the end of the TollCollect project.
The IRHA has criticised the German toll system, saying it would discriminate against foreign haulers who would unfairly subsidise German companies.
"The EU ministers are going to have to get their heads together on a pan-European business and decide, once and for all, how road transport is going to be charged," said spokesman Mr Jimmy Quinn.
Now the TollCollect consortium has two months to present a radically improved proposal or face legal action.
"The lawyers are looking forward to this already," said Mr Stolpe.
