Why the hue and cry over toll hikes?

Some ministers seem lost at why was there such a hue and cry over the proposed highway toll hikes. Abdul Wahid Omar, the Minister in the Prime Minister’s Department provoked criticism when he declared that those who do not want to pay the increased toll rates to simply use alternative routes.

They argue that based on the agreement there is no choice as it is either the toll rates go up or the government compensating the concessionaires. In 2011, the last time a toll rate revision was due, the government stopped the toll hike and had to compensate the concessionaires instead.

Has the government forgotten Barisan Nasional’s (BN) pledge in their 2013 General Election Manifesto that promised “the gradual reduction of intra-city tolls”? Did the government not know about the concession agreements then? What has changed after BN formed the government without the popular support of the public in May to today?

The comment by Wahid also reveals how out of touch the government is. More and more communities in the Klang Valley today are surrounded by tolled highways. For the common public, there are no feasible alternatives to paying the toll for their daily commute. For communities cut off from each other by one highway and another, the toll plazas have turned into our own mini Berlin Walls.

A more fundamental question is instead of hiding behind the concession agreements, we need to ask why are such lopsided agreements were signed in the first place? In fact, as Pandan MP Rafizi Ramli pointed out, the major companies with toll concessions in the country are PLUS, Prolintas and Gamuda.

Both PLUS and Prolintas are wholly owned by government-linked investment companies Khazanah, EPF and PNB. Government-linked investment companies such as EPF, Tabung Haji and KWAP hold over a fifth of the share in the latter.

Pakatan had in its own 2013 general election manifesto promised to take over toll concessions by buying over the shares of toll concessionaires. If that seems like a tall order for the BN government, at the very least they could have renegotiated to get more equitable agreements and fulfil its own pledge to gradually reduce toll rates.

Due to the skewed agreements, many of these concessionaires are earning massive profits that would be the envy of any corporation worldwide. Why can’t the government renegotiate the agreements to allow for the concession to end when the investment has been recouped combined with a reasonable profit margin for the concessionaire?

The Selangor state government has announced that it will use its interests via PKNS and Kumpulan Perangsang to not increase the toll charges in Kesas, Sprint and LDP.

It all boils down to an issue of political will. At a time when prices are going up of the various “subsidy rationalisation program”, the government needs to show imagination but most importantly leadership to be on the side of the working and middle class rakyat which are bearing most of the brunt.

When it comes to increasing rates for the public, the argument most often floated around by the government and the analysts is that they are left with no option to honour the agreements. Sadly, no such sentiment is seen in eradicating corruption and wastage that has become so embedded in the country or fulfilling election pledges. – December 21, 2013.

* This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insider.