NSW Independent Toll Review slammed by NatRoad
The National Road Transport Association (NatRoad) has expressed deep disappointment with the final Report from the 2023 NSW Independent Toll Review, which NatRoad says has failed to heed many concerns of the transport industrySpecifically, NatRoad has highlighted the proposal in the final Report to increase the heavy vehicle toll multiplier from three-times to 3.5-times the cost of light-vehicle tolls.
Back in March of this year, NatRoad welcomed the Interim Report of the New South Wales Independent Toll Review, saying it was keen to work with its chair, Professor Allan Fels, on a fairer model for heavy vehicles.
The interim Review recommended a system that would put a declining distance per-kilometre charge at the heart of all toll pricing and toll some sections of the network that are currently free.
It called for a trial of flexible pricing, including peak/off-peak pricing with a focus on freight operators and recommended the introduction of a new toll truck category: Mid Class Heavy Vehicles.
Economic modelling in the interim report found that heavy vehicles would generally pay lower tolls overall, although some trips would cost more because of the proposed changes.
Final report disappointment
"The trucking industry has not been listened to,” said NatRoad CEO Warren Clark.
“This (final) Report is a setback for trucking businesses, which operate on extremely tight margins.
“The suggested increase in the toll multiplier to 3.5 is unjustified and mocks the essential role of trucking in our economy and our supply chain.
“Our industry simply cannot absorb these unfair and unnecessary costs, nor can we simply pass them on to customers.
“In addition, the recommendation to apply a toll to Sydney Harbour crossings for trucks, using the new higher multiplier, further exacerbates the financial burden on truck operators.
“These moves are in stark contrast to the fairer tolling system the Report claims to call for,” said Mr Clark.
NatRoad has made the following points in regard to the increase in the toll multiplier:
- The final Report overlooks substantial evidence that the current truck toll multiplier is unsupported by data
- NatRoad’s recommended two-times multiplier is more than reasonable and equitable More than 90 per cent of trucking operators are small and family businesses with profit margins averaging just two per cent and increasing the multiplier to 3.5 times places an undue burden on these operators
- The 2022 NSW Parliamentary Inquiry into road tolling found it already inequitable to charge trucks three times as much as cars – especially where trucks are compelled to use toll roads as on the M1’s NorthConnex.
However, NatRoad does welcome some aspects of the report, including the establishment of an independent regulator and the move towards a unified and simplified tolling system, incorporating a trial of peak/off-peak tolls for heavy vehicles.
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NatRoad also stated that while the Report calls for extensive stakeholder consultation, that must include action on NatRoad’s recommendations for variable lower truck toll rates, discounts for multiple truck journeys and exemptions for zero-emission heavy vehicles.
“We are calling on NSW Government to reject the proposed toll multiplier increase and to engage in meaningful dialogue with the trucking industry to develop a more realistic tolling system,” Mr Clark said.
"The trucking industry stands ready to assist in implementing necessary reforms, but that must include workable, fair and sustainable solutions for all road users.”
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