NewsBite

Exclusive

Taxpayers slugged $130k per week for ‘legal advice’ on toll reform

The Daily Telegraph can reveal that the Minns government’s sluggish attempts to reform the toll network have now cost taxpayers more than $8 million.

Plans tabled for NSW state-owned tolling entity

Taxpayers are being slugged more than $130,000 per week for a “Big 6” law firm to give legal advice on toll reform.

The Daily Telegraph can reveal that the Minns government’s sluggish attempts to reform the toll network have now cost taxpayers more than $8 million.

It comes after the government racked up an extra $3.7 million in “professional services” and “consultancy” spending as part of its sluggish attempt to overhaul the toll system, which has so-far failed to deliver meaningful change to drivers.

The Telegraph can also reveal that former competition crusader Allan Fels has been sidelined from negotiating with tolling companies on reforming the network, with the NSW Treasury hiring a new consultant to take over.

Wednesday marks 700 days since Transport Minister John Graham launched an independent review into Sydney’s tolling network, which has recommended distanced-based tolling and a new charge on the Harbour Bridge.

700 days since the toll review was announced, the Minns government has so-far delivered no reform. Picture: NCA Newswire/ Monique Harmer
700 days since the toll review was announced, the Minns government has so-far delivered no reform. Picture: NCA Newswire/ Monique Harmer

The Minns government has capped private toll spending at $60 per week, but this temporary cap is due to expire at the end of the year.

The review was designed to provide long-term reform to help people from Western Sydney pay less, but has as-yet failed to deliver any changes.

Former Baker Mackenzie chair Christopher Saxon has been engaged on a $990,000 contract to give “negotiation strategy and advice” on overhauling the tolling system.

Professor Allan Fels has been sidelined from negotiating toll reform with private companies who own the toll roads. Picture: NSW GOV via NCA NewsWire
Professor Allan Fels has been sidelined from negotiating toll reform with private companies who own the toll roads. Picture: NSW GOV via NCA NewsWire

That comes on top of another $2.75 million the government is paying for “legal advice” between February 5 and June 30 this year.

That amounts to taxpayers forking out $130,000 per week for law firm Ashurst Australia to provide advice to bureaucrats.

That cost is in addition to the $5.4m already spent on Mr Fels’ toll review, which included $145,000 in flights and accommodation for the review’s two authors.

A temporary cap on tolls is due to end at the end of the year. Picture: NCA Newswire/ Monique Harmer
A temporary cap on tolls is due to end at the end of the year. Picture: NCA Newswire/ Monique Harmer

It can now be revealed that Mr Fels’ review also wanted to slap new tolls on previously free sections of the M5, according to a “sensitive” cabinet document unearthed by an order of parliament.

That suggestion did not appear in the final report.

When he announced the toll review, Mr Graham said that the former ACCC boss would be responsible for “negotiating directly with the private toll operator” to get a better deal for motorists.

Roads Minister John Graham said the cost of toll reform was “infinitely” smaller than $195 billion Sydneysiders will pay in tolls by 2060. Picture: NSW GOV via NCA NewsWire
Roads Minister John Graham said the cost of toll reform was “infinitely” smaller than $195 billion Sydneysiders will pay in tolls by 2060. Picture: NSW GOV via NCA NewsWire

However, that role has now been passed on to Mr Saxon.

“Chris Minns promised to make tolls cheaper, but all he has done is spend more than $8 million on a never-ending review with nothing to show for it,” Opposition spokeswoman Natalie Ward said.

Asked why Mr Fels had been sidelined, Mr Graham said that the former head of the consumer watchdog had “engaged and negotiated with the toll road concessionaires through the independent Toll Review and brought them to the table for the next phase”.

The toll review called for two-way tolling on the harbour bridge. Picture: NCA Newswire/ Monique Harmer
The toll review called for two-way tolling on the harbour bridge. Picture: NCA Newswire/ Monique Harmer

“Allan Fels and Christopher Saxon are both bringing specific expertise to the complex toll reform negotiations.”

Mr Fels is still being paid to advise the government on toll reform.

Premier Chris Minns has refused to rule out placing a new northbound toll on the Harbour Bridge, something which would amount to a broken election promise.

A long-promised overhaul of the toll network is yet to be finalised.

Mr Graham said that the cost of reform was “infinitely” smaller than the $195 billion drivers are expected to pay in tolls to 2060.

Originally published as Taxpayers slugged $130k per week for ‘legal advice’ on toll reform

Add your comment to this story

To join the conversation, please Don't have an account? Register

Join the conversation, you are commenting as Logout

Original URL: https://www.couriermail.com.au/news/nsw/taxpayers-slugged-130k-per-week-for-legal-advice-on-toll-reform/news-story/01d7ef103b0e6af03e92ee39de667326