Sydney motorists to pay $123 billion in road tolls by 2060, modelling reveals

Sydney motorists will pay at least $123 billion in tolls by 2060, according to modelling which reveals the “secret” figures for the first time.

Sydney motorists will pay at least $123 billion in road tolls by 2060, according to new modelling released by Labor as it accused the former Coalition government of keeping the true cost of “multi-decade” contracts a “state secret”.

The modelling by NSW Treasury and Transport for NSW released on Monday by the Minns government reveals for the first time what the total toll burden will be over the coming four decades before existing contracts expire, Roads Minister John Graham and Treasurer Daniel Mookhey said in a joint statement.

“I said before we came to government that toll costs should not be kept hidden. As of today, they are no longer a state secret,” Mr Graham said.

“You can’t even get a mobile phone contract without being told the minimum payment and yet NSW motorists have been signed up to more than $100 billion in toll costs without any disclosure under the former Coalition government.

“A 30 year-old driver today will reach retirement age before some existing toll contracts expire, which is why it is critical we let the light shine in here and debate the merits and the long-term costs of how our tolling system is structured.”

John Graham, Daniel Mookhey and Professor Allan Fels. Picture: NCA NewsWire

Mr Mookhey said, “The people of NSW deserve to know what they have been signed up to under privatised contracts and especially so when we are talking about multi-decade bills for everyone who drives a vehicle in Sydney.

“By providing this Treasury toll modelling publicly we are making good on our transparency agenda just as we are seeking to let people know what is contained in privatised contracts over ports and electricity networks and generators.”

The modelling includes revenue to privatised roads including WestConnex, NorthConnex, Eastern Distributor, M2 and M7, as well as the NSW government-owned Sydney Harbour Bridge and Tunnel, and the future M6 Stage 1.

Treasury has used a conservative set of assumptions, including a long-term inflation rate of 2.5 per cent and projected population growth in NSW, to create the baseline minimum toll burden.

Traffic seen on Stoney Creek Road, Bexley. Picture: News Corp

The figures are the total potential tolls paid by motorists and do not reflect the running costs, maintenance and financing charges borne by operators.

It comes after the new government introduced a $60 weekly toll cap, beginning on January 1, which will benefit an estimated 720,000 motorists.

Opposition roads spokeswoman Natalie Ward has dismissed the government’s modelling.

“The Labor government couldn’t even cost its $60 toll cap correctly, but now expect people to believe it can forecast 40 years of toll road revenue — this is a made up number,” she said in a statement to news.com.au.

“If NSW Treasury and Transport were so precise why does the NSW budget change its forecasts every six months? The fact is Labor committed to tabling in parliament the toll road contracts — the former Coalition government disagreed with that approach, but Labor were elected and they should meet their commitment.”

She added, “If Labor disagree with a user-pay approach why are they still committed to tolling the M6 Stage 1 and Western Harbour Tunnel, which are both government owned projects they could remove the toll on tomorrow?”

NRMA spokesman Peter Khoury said there was “no doubt we can continue to make improvements in the network around fairness and equity”.

“We support the motorway network in Sydney, we supported the construction of it, our research shows our members are prepared to pay tolls if it delivers them value for money,” he said.

People are prepared to pay tolls if they deliver ‘value’. Picture: News Corp

“That means getting home quicker at night to their families than if they had not opted to use a motorway. It doesn’t deliver them value if it’s overpriced or doesn’t work effectively. No one wants to pay to sit in a parking lot.”

The NRMA has called for a more standardised road user charge approach that means everyone “pays the same amount per kilometre, regardless of where they live”.

Mr Khoury added the motoring body had been campaigning for a long time on greater transparency in toll operator contract structures and negotiations.

“We’ve always said there needs to be a third party in the room to make sure these contracts are being signed with the public’s best interests at heart,” he said.

Appearing in budget estimates last week, Mr Graham was accused of being evasive after he repeatedly declined to answer whether all NSW drivers would be able to access the $60 toll cap.

“What we’ll make clear is how drivers can register and all these arrangements close to the time. We’ve got some time,” he said. “We’re expecting a Service NSW-style engagement … with drivers.”

The Roads Minister said the $561 million program was “on track” for the January 1 rollout.

“We indicated in the election, after some of these issues were raised, that there would be audits, there would be careful administration around the scheme,” he said.

“And I’ll be outlining those to the public in detail prior to the first of January.”

Ms Ward accused the government of breaking a key election promise.

Sydney pays $2 billion in tolls per year. Picture: Monique Harmer/NCA NewsWire

“Labor blew the budget on this policy, and now they are walking back their promise,” she said last week. “It is a simple question, will every driver benefit from the scheme or is this another broken promise from Labor?”

An independent tolling review led by former ACCC chairman Allan Fels is also tasked with advising the NSW government on making the system fairer, particularly for people in western Sydney who have fewer public transport options and cannot avoid higher weekly toll bills.

Sydney is one of the most highly tolled cities in the world with 13 motorways that incur charges. Motorists pay tolls on more than one million trips per day, totalling around $2.3 billion a year.

Record-breaking quarterly or annual toll increases, now outpacing wages or inflation across nearly all of Sydney, was a key voter issue heading into the March state election which saw Chris Minns elected Premier.

Road operator Transurban now owns all or part of the M2, the M4, the M5 South West, the M5 East, the M7, the M8, the Lane Cove Tunnel, the Cross City Tunnel, the Eastern Distributor, NorthConnex and WestConnex.

“Sydney’s toll roads deliver significant value to motorists and communities and support the city’s continued growth,” a Transurban spokeswoman said.

“Drivers enjoyed 224,000 hours of travel savings per workday last financial year. Transurban appreciates the opportunity to participate in the NSW Independent Toll Review, and looks forward to working with the government to find ways to further enhance the benefits of motorways for all road users.”

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— with NCA NewsWire