ACCC delays decision on WestConnex sale
MOTORISTS would be locked into tolls for the next 43 years if the State Government proceeds with selling WestConnex, the State Opposition said today, as a competition watchdog delayed its review into the sale.
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MOTORISTS would be locked into tolls for the next 43 years if the State Government proceeds with selling WestConnex, the State Opposition said today, as a competition watchdog delayed its review into the sale.
The Australian Consumer and Competition Commission was due to hand down its decision today, but boss Rod Sims said he still needed to “get to the bottom” of competition concerns around the sale.
Mr Sims said the project was “unusually large” with “unusually complex competition issues”.
“We simply require more time to consider,” he said in a statement on Thursday.
A final decision will now be made by September 6.
The WestConnex project, comprising 33km of motorway being built around Sydney, is the nation’s largest infrastructure project.
The Berejiklian Government plans to sell off a majority stake in WestConnex this year, but the ACCC has begun an investigation into the sale over fears tolling company Transurban could end up with a monopoloy and drive up toll costs.
“We recognise that the decision to extend the timeline for our decision may have flow-on impacts for the WestConnex sale process, so we do not do this lightly,” Mr Sims said.
“However the reality is that this is a major transaction in the context of NSW toll roads, arguably the most significant in Australia in the foreseeable future.”
It’s the second time the ACCC has delayed delivering its findings. Its initial decision date was to be in April but the timeline was extended after more information was requested from the company.
According to the Opposition transport spokeswoman Jodi McKay, the government should halt the sale process because to “proceed with the sale would be reckless and irresponsible”.
She said the reintroduction of the M4 toll was already hitting motorist and “selling WestConnex will lock them into tolls for the next 43 years”.
“When you have the ACCC signalling issues with the sale, that has to be taken seriously,” she said.
“There are five tolls in total the government is trying to sell. This has enormous ramifications for motorists. For a start they shouldn’t be paying a toll on the M4.
“If the government delays the sale, they can remove that toll on the M4. Until this sale goes ahead, that toll can be removed. They should delay the sale and remove the toll.
“That is why Labor will re-introduce a cashback onto the M4.”
A spokesperson for NSW Treasury said: “The Government is aware of the delay relating to the Australian Competition and Consumer Commission’s review of the proposed bid by the Sydney Transport Partners Consortium for the acquisition of 51 per cent of Sydney Motorway Corporation.
“The Government is committed to securing the sale proceeds that will help fund the critical M4-M5 Link.”