Motorists face 20% rise in toll bridge charges

Motorists using the East and West-link toll bridges in Dublin face an increase of 20 per cent in charges later this year.

The increase in toll costs is expected following the announcement yesterday that tolled facilities will be subject to VAT at the standard rate of 20 per cent. The measure will be included in the Finance Bill, to be published in February, and the increase is expected to be introduced toward the end of the year.

The move will not affect commercial vehicles as they will be able to reclaim the VAT. But ordinary motorists, who have already seen the toll charge on the East Link rise to 70p from 65p since January 1st, are likely to have to pay much more for their journey.

NTR, which operates both toll bridges on the Government's behalf, said it was opposed to the imposition of additional charges on its customers.

"We await contact from the Department of Finance on the precise implications of today's announcement," an NTR spokesman said.

The move has been forced on the Government following a ruling by the European Court of Justice that tolled facilities operated by private sector bodies in the Republic be subject to VAT.

However, in Britain the government has indicated its intention to absorb the VAT, a move some believe the Irish Government should follow.

The Automobile Association (AA) said the Government could easily absorb the VAT element of the toll costs by giving back some of their franchise fee. Of the €29.6 million in revenues generated by NTR in 1999, nearly a quarter or some €7.3 million was paid to the Government in licence fees.

AA spokesman Mr Conor Faughnan also said the decision to levy VAT on toll charges strengthened the AA's argument that imposing tolls to help pay for the cost of building new roads under the National Development Plan (NDP) was not the way to go.

Meanwhile, the Consumers' Association of Ireland said the increase in toll charges would fuel inflation. However, it said it would probably end up being passed on to the consumer in full. This would raise the cost of using the West Link from 80p to 96p, an awkward figure, according to CAI chief executive Mr Dermot Jewell.

"We would like to see it rounded down in favour of the consumer rather than upward in favour of the toll company," he said.