Jeff Kennett: We must not stand for this gouging
TRANSURBAN’S toll hike for commercial vehicles is not only unacceptable gouging, it will force trucks back on to suburban roads, writes Jeff Kennett.
Opinion
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THIS newspaper’s Terry McCrann reported recently that the state government was aiding and abetting Transurban by imposing an $8 billion cost on Victorian taxpayers for the expansion of tolling options in return for untendered infrastructure developments.
Last week Lindsay Fox spoke about the financial damage that will be imposed by Transurban on trucks that use Transurban’s road network from April 1.
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From that date, Transurban will lift the tolls on trucks of all sizes that use its road network.
Transurban has attempted to justify the increases, in excess of 60 per cent, by arguing that truck operators should pay in advance for roadwork that will not be completed until 2018.
In other words, they are charging today’s users for a road system that is not available and will not be for another 10 months, at the earliest.
That is gouging, abusing the system Transurban operates as a monopoly. And where is the government, protector of the public interest? It is so far in the pocket of Transurban that we have heard not a peep.
But it gets worse. The Government Deed under which Transurban operates was signed by my government in 1996, 21 years ago. But after all that time, Transurban has decided to change the definition of “cab chassis”.
So if you drive a Holden ute, your car will be a passenger vehicle. But if you drive a Ford ute, it will be a commercial vehicle and your toll will go up by about 60 per cent from April 1. To me, that seems nothing more than greed.
When we signed the deed with Transurban, it was never intended that utes were anything but passenger vehicles.
So, I say this to Transurban:
CANCEL your proposed massive increase in charges from April 1 that will apply to commercial vehicles for roads that don’t exist.
NO TOLLS should increase by more than CPI.
DO NOT redefine words in the 1996 deed.
To the government, I say wake up and protect the public from a monopoly operator that is gouging them.
To the Opposition, other parties and independents, I say if the government will not act, launch a public inquiry in the Upper House to expose Transurban as bullies.
Such an inquiry could examine the clauses in the deed concerning excessive profits. It could examine the damage the unjustified increases in commercial tolls will cause the truck operators who are sole traders or families.
And it could examine the social impact and safety risk of trucks using suburban roads to avoid the increased tolls. It could examine what parts of the deed that have been applied for 21 years are being, or will be, changed to line Transurban’s pockets.
Transurban is getting away with financial murder. Imagine if your rates, taxes, utility charges or health insurance went up 60 or 100 per cent for future works. There would be uproar.
But we have virtual silence, because our government is working with Transurban to deliver more road infrastructure without going to public tender.
I BELIEVE Transurban should not be trusted to be a future provider of infrastructure in Australia. The state government will not give an Upper House inquiry the funds to conduct a forensic examination of the revenue collected under the 1996 deed — so perhaps Victorian senators could act in a bipartisan way and have a Senate inquiry into Transurban’s operations. Or even call for a royal commission.
The state government has put a rate freeze on our councils to protect ratepayers and increase efficiency, but it is silent on Transurban’s unprecedented rate rises.
Let me be clear: Transurban is an Australian company — in fact, Victorian — formed out of my government’s decision to build CityLink. Since then it has expanded throughout Australia and overseas. I salute it for that and its shareholders have done very well.
But it has become greedy and arrogant as it pursues growth.
The contract we signed in the ’90s allowed Transurban to lift tolls annually by CPI or 4 per cent. Up until the Napthine government, I assume Transurban charged the higher amount of 4 per cent. Now it has found a way around the intent of the changes.
Also in the original contract was a clause that protected the public from Transurban receiving excessive profits. Transurban and the government say that clause has not been triggered, but I question that because of the growth in traffic on our roads. That clause should be tested by an independent body.
One of the reasons we invested in CityLink was to get trucks off our suburban roads. Now the government, without a whimper, is allowing Transurban to drive them back there.
It is one thing for our government to rip up the East West Freeway contracts at a cost of more than $1b. It is another to irresponsibly award huge contracts without tendering and allow a monopoly to thumb its nose at good practice.
The Andrews Government is doing good things by removing level crossings — but to what purpose if trucks are forced back on to our suburban roads?
If you are threatened by a truck in your neighbourhood after April 1, dip your lid to Daniel Andrews and his mates at Transurban.
Have a good day and on your bike!
Jeff Kennett is a former premier of Victoria
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