Labor’s policy to cap tolls has blown at least a $338 million black hole in Labor’s budget, in further proof that NSW Labor cannot be trusted to manage the state’s economy.
Analysis of toll account and toll usage data reveals Labor’s toll policy will cost at least three times the figure Chris Minns claimed last month.
Labor claims the $60 cap per week policy will cost the taxpayers of NSW $147m over two years. In a subsequent press conference the opposition roads spokesman confirmed that the $60 cap applied to accounts, not tags.
Labor has claimed their policy would benefit 51,000 people or roughly 2 per cent of NSW motorists.
As part of the analysis undertaken by the NSW Government it can be revealed that around 27 per cent of accounts will hit the cap, although 67 per cent of customers will reach the threshold on fewer than six weeks per year.
The benefits to the majority of Sydney motorists are negligible with 63 per cent of Sydney motorists receiving less than $100 per year from Labor’s policy.
Based on this analysis, Labor’s proposed policy will cost at least $485m over two years, significantly higher than the $147 million over two years Labor claimed when releasing the policy in early February, creating a $338 million black hole.
Treasurer Matt Kean said it’s time for Labor to come clean on the cap, which either has additional conditions attached that they are yet to reveal or will cost the NSW economy millions and expose the state to an uncapped financial risk.
“Yet again, Labor has shown they’re not fit to run our state, with their long awaited toll scheme grossly under costed,” Mr Kean said.
“Labor has cooked the books on their signature policy and have not accounted for increased demand among commuters who will take up driving or change their behaviour which will see the scheme blow out into the millions.
“This is a reckless scheme from Labor, which will only put further pressure on households feeling the pinch from cost of living. Any additional claims on the scheme will be paid for by the taxpayers of NSW.”
Minister for Metropolitan Roads Natalie Ward said Labor plans to use the tolls from the Sydney Harbour Bridge and Sydney Harbour Tunnel but can’t say how they will maintain the iconic assets without that revenue.
“Currently tolls collected on the Sydney Harbour Bridge and Tunnel cover the maintenance and safety operations of both structures and taking that away puts safety at risk,” Mrs Ward said.
“That is $122 million annually that Labor will have to find somewhere if they want to guarantee safety across these critical harbour crossings.
“This is just another example of how Chris Minns will take NSW backwards, seeking out cheap headlines without doing the work properly, at a cost to every single person in our state.”
The Government’s modelling of Labor’s scheme does not account for additional costs of Labor’s policy caused by increased trips, changes in driver behaviour or changes to account settings as a result of the proposed toll cap policy.
More than 80,000 drivers have already claimed $32.1 million in the first two months of the Liberal and Nationals Government’s Toll Relief Rebate Scheme.
Drivers and eligible small businesses operators are able to claim up to an additional $750 in rebates once they’ve spent $375 in a year on a business toll account.
Customers who need assistance verifying their identity, linking their toll account or submitting a claim can call Service NSW on 13 77 88 for guidance or by visiting their nearest Service NSW Service Centre for digital kiosk support.
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