Friday, December 15, 2006

Toll Rates Increase Is Not A Matter Of Choice - Najib.

Datuk Seri Najib Tun Razak said that the increase in toll rates starting Jan 1 was not something that the government wanted to do as a matter of choice.

The Deputy Prime Minister stressed that the government had no choice but to go ahead with the increase.

"We (the government) have no choice but to go ahead (with the increase) but it has to be on the basis of sharing the burden," he told the Malaysian media.

Najib who is on the second day of his four-day working visit here was asked to comment on the increase that was announced by Works Minister Datuk Seri S. Samy Vellu yesterday, which was received with resentment by the highway users.

"This is not something that we wanted to do as a matter of choice. Important thing to understand is that to have world class infrastructure facilities, somebody has to pay for that. You cannot have quality highways but you're not willing to pay for it," Najib said.

Najib said sharing the burden meant that the government would fork out a considerable amount of money which otherwise would have gone for development but have to be used to keep toll rates at the announced level.

He said if not for that, the toll rates increase could have been higher, citing as example, the Damansara-Puchong Highway toll rate would have been RM2.10 but instead it was fixed at RM1.60.

He added that there was an earlier exercise which kept the toll rate at RM1 for much longer in 1999.

"It is not that something which we (the government) pass on merrily to the people. We are mindful of the burden but the people too have to realise that world class infrastructure that we talk about so often doesn't come without a cost," he said.

Samy Vellu announced that toll rates at five highways in and around the Klang Valley would be raised between 30 sen and RM1, starting Jan 1 next year.

The five highways involved are Lebuhraya Damansara-Puchong (LDP), Lebuhraya Shah Alam, Lebuhraya Cheras-Kajang, Lebuhraya KL-Karak and Lebuhraya Koridor Guthrie.

The new toll rates for LDP will be RM1.60, an increase of 60 sen, Lebuhraya Shah Alam -- RM2.20 (up 70 sen), Lebuhraya Cheras-Kajang -- RM1 (Batu 9) and 90 sen (Batu 11) (both 30 sen more), Lebuhraya KL-Karak -- RM5 (Gombak) (RM1 higher) and RM3 (Bentong) (50 sen more) and Lebuhraya Koridor Guthrie -- RM1.40 (up 40 sen). These rates are for cars classified as Class 1.

The minister said if the government had allowed the five concessionaires to raise toll rates according to the concession agreement, then the burden on the consumers would have been much higher. -- Bernama (By Mohd Nasir Yusoff)

***** I have no further comments to make and leave you the readers to make up your own mind about what our DPM said and whether it is acceptable or not.
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3 Comments:

Anonymous Anonymous said...

That idiots BN whoever sign & agreed those lop-sided concession to the highway operators got to be hanged for corruption. And now DPM tell us BN got no choice but to increase toll as per agreement? Where is the transparency? everybody would like to be highway operators man! If u lose mony u can easily pass it back to BN, if u make tons of monies, u can share with those corrupted suckers.

The Malaysian, won't you like to receive privatised concession/business from BN huh?

10:15 AM GMT+8  
Anonymous Anonymous said...

Anyone have taken a look at their annual report of those companies in tolls. Making millions and there is a justification to increase the rates. If privatisation is a "must" wouldnt it be more logical to award it to EPF or some pension funds where the profit earn be given back to the rakyat. Well life it not about logical at times

11:07 AM GMT+8  
Blogger warrior2 said...

Do we want privatised highways? or would we prefer all highways to be funded by the government? of course if that was the course of action taken by the government before, we wouldnt have all the highways because fund is limited.!

To The Malaysian and Other Malaysians, instead of complaining this and that, making unqualified comments which is based on emotion, nerd instinct and ignorant, why dont you do an economic analysis as to what would be a proper rate of toll for selected privatised highways and the rate of increase if any taking into account capital investment, irr , operational and maintenance cost etcetc.

ONLY then would your comments and views be credible.

4:59 PM GMT+8  

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