Toll hike on hold till 2010

The Government has revoked its decision to approve toll increases for five highways which were to have taken effect tomorrow.
The decision was made at the Cabinet meeting chaired by Deputy Prime Minister Datuk Seri Najib Tun Razak yesterday.
Prime Minister Datuk Seri Abdullah Ahmad Badawi, who is in Pattaya, had called for a review of the decision following a public outcry.
Najib said the toll increases would be put off indefinitely.
“We do not know for how long as it will depend on our affordability (to pay compensation to the concessionnaires). We will make whatever necessary decision when the time comes.
“But by not increasing the toll rates, the Government has to fork out an additional RM500mil a year and that’s taxpayers’ money,” he said.
On Thursday, Works Minister Datuk Seri Mohd Zin Mohamed announced toll increases for the North-South Expressway (0.68 sen per km), Sprint Highway (between 30 sen and 50 sen), Sungai Besi Highway (Besraya, 10 sen), Ampang-Kuala Lumpur Elevated Highway (Akleh, 50 sen) and New Pantai Expressway (NPE, 40sen).
He said yesterday the Cabinet decided to rescind its Feb 11 decision after considering public feedback.
“The Cabinet has decided to postpone the toll hikes,’’ he told a press conference at the Works Ministry.
Zin’s earlier announcement had met with strong opposition from consumer groups, lorry and bus associations as well as Barisan Nasional and Opposition MPs.
The minister said the Government would have to fork out RM287mil to pay the concessionnaires – PLUS (RM195mil), Sprint (RM36mil), Akleh (RM27mil), Besraya (RM9mil) and NPE (RM20mil) – from January to December this year.
Reacting to the Cabinet’s decision from Hua Hin in Thailand, Abdullah said the decision was not made due to the coming Bukit Selambau state and Bukit Gantang parliamentary by-elections, “but due to the people’s economic hardship”.
He explained that the decision to increase the toll rates was made two weeks ago following a study.
“The reality is that what was announced (to raise toll) was based on a study done and a proposal was made to the Cabinet two weeks ago,’’ he told Malaysian journalists after meeting Thai Prime Minister Abhisit Vejjajiva on arrival to attend the Asean summit.
On calls for the Government to buy out the concessionnaires, the Prime Minister said a huge allocation would be needed.
“We need to study first as this will require a huge spending. We have to spend our budget on other things.
“The compensation (to the concessionnaires) is already a burden to the Government,” he added.
Abdullah said the people should understand the situation and support the Government in facing the economic hardship.
“If we need to sacrifice, then sacrifice we must. When times are bad, live within your means, when times are good, then learn to enjoy,” he advised.
Najib said the increase that Zin had announced earlier was “moderate”.
“The amount (of compensation) will be substantial and it will add over the years. But the public is so averse to any increase, which I understand.
“So the Government has decided not to increase (the toll rates) but this means we will have to set aside more money for compensation,” he said.