Reduction of road toll rate is a better way

DAP National Deputy Chairman and MP for Kepong Dr Tan Seng Giaw urges the Federal Government to discuss further with 24 road toll concessionaires to reduce the toll rate suitably, instead of the early morning package of 10% reduction by PLUS.

Once the concessionaires print their contracts with the Federal Government and make them public, the people especially MPs and members of consumer associations must try to understand the contents and come up with legally acceptable proposals. Parliament should have its caucus to pore over these documents, looking for ways to relieve the people of the burden.

Dr Tan comments on the North South Highway concessio0naire PLUS's early morning offer of 10 % reduction of toll for roadusers and the 5% reduction for those who pay over RM200 per month. This offer benefits only those who use the highway between 12 midnight and 7 am.

We have been debating road tolls in the House for over 20 years when the privatization of the North South highway was first mooted by the Federal Government. Then , DAP objected to the privatization and took the matter to court; three Supreme Court judges voted against DAP and two supported. When the Government won the case in 1987, DAP leaders were in Kamunting University. The Government went ahead with privatization and United Engineers Malaysia (UEM) was appointed the concessionaire. When the concessionaire was in trouble, the Government rescued it. Now, PLUS is the concessionaire; it is a government linked company.

We believe that unless there are special circumstances, roads should be built using public fund. Once a road is privatized, the concessionaire collects toll that is a burden to users for a long period. Although a concessionaire can have corporate responsibility, its main purpose is to make profits. If there is a repair or widening of the road, it refers to the contract to increase toll rate.

The current global tsunami causes economic slowdown and recession. Malaysia is not spared. Crude oil price has fallen from USD 140 to USD 56 per barrel. Since 23 August, 2008, the Government has reduced the retail price of petrol five times: petrol is RM 2 per litre and diesel RM 1.90 per litre. Price of goods including road tolls should go down accordingly.

There are many factors that influence the price of goods such as the cost of transport and import and unscrupulous operators. Hypermarkets reduce the price of some of the goods. But, shopkeepers and petty traders face difficulty. For example, having imported goods at a high cost they are persuaded to reduce the price.

Dr Tan Seng Giaw