M50 toll plan a 'rip-off', hearing is told

Plans for new electronic tolls on Dublin's M50 motorway are a "rip-off" designed to fleece motorists who have to use the road…

Plans for new electronic tolls on Dublin's M50 motorway are a "rip-off" designed to fleece motorists who have to use the road because there is no alternative, an oral hearing into the plan will hear today.

Fine Gael TD Leo Varadkar is addressing the National Roads Authority's hearing on the draft M50 tolling scheme at Croke Park.

There is no positive incentive to sign up for e-tagging, and no reduction in the standard charge. Instead motorists are penalised for not signing up
Leo Varadkar, Fine Gael

The NRA will take control of the West-Link toll bridge on the M50 from next August after buying out the contract from NTR plc for €488 million.

Cars currently pay €1.90 to cross the West-Link, but this fee is set to rise to €2 in 2008.

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Under the draft plan, when barrier-free tolling is introduced, motorists who pre-register their vehicle and provide card details will pay €2.50. Those who do not pre-register will be charged €3. Motorists with an electronic tag will continue to pay €2.

"The NRA's barrier-free tolling scheme is the latest example of rip-off by a Government agency," Mr Varadkar said.

"There is no positive incentive to sign up for e-tagging, and no reduction in the standard charge. Instead motorists are penalised for not signing up. This is a poorly disguised attempt to generate extra revenue by increasing the toll for many users to €2.50 and to push people into using electronic tags," he said.

Labour Party transport spokesman Tommy Broughan called on Minister for Transport Noel Dempsey to fully explain how the new scheme for barrier free tolling on the M50 will operate.

"At yesterday's Oireachtas Transport Committee hearings, Minister Dempsey provided very unsatisfactory answers on the M50 buyout. He and his department had no answers to hand in relation to the construction and running costs of the West Link to the NTR company since 1987 or the total coast of the incredible 1987 deal to taxpayers and motorists," Mr Broughan said.

He said he intended to raise the issues with Comptroller and Auditor General John Purcell at tomorrow's meeting of the Public Accounts Committee.

The AA today called for the tolls to be abandoned and replaced with a two cent per litre 'infrastructure levy' on fuel, which it said would raise more money with far less waste.

"NRA figures envisage a set-up cost of €13 million and an ongoing operating cost of €25 million annually, based on 2008 prices. This would mean that of the €80 million collected in revenue each year over 30 per cent would disappear in costs. This is scandalously wasteful," said AA public affairs manager Conor Faughnan.

The NRA said yesterday that barrier-free tolling offers the best chance to "maximise the efficiency of the M50 so that upgrades undertaken at the cost of almost a billion euro gives the user and the operator the maximum return".

Today's hearing is being chaired by former Central Bank governor Maurice O'Connell. He is expected to make recommendations by the end of next month.