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Key parts of review to cut NSW toll road costs have been hidden from public, report co-author claims
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Key parts of review to cut NSW toll road costs have been hidden from public, report co-author claims

The former head of the federal competition watchdog has accused the NSW government of hiding parts of its report on the toll road industry, including toll road giant Transurban.

Professor Allan Fels said parts of his landmark review of the state’s toll road industry, which included initial financial modeling, had been hampered by senior bureaucrats in government.

“We wanted to release a lot more information, but we were firmly blocked by the three deputy secretaries involved, and at the last minute they produced a legal opinion overnight from the firm they use,” he said.

Allan Fels stands against a cityscape

Former ACCC chief Allan Fels says key parts of his report were blocked. (Four corners)

“The main threat was that I would be sued for billions of dollars and possibly subject to criminal sanctions.”

Premier Chris Minns’ government has commissioned Professor Fels and economist David Cousins ​​to lead a review of Sydney’s toll roads as part of its 2023 election pledge to reduce network prices.

Their 382-page final report, published in July, called for online prices to be controlled by a state government agency, as well as two-way tolling on the Sydney Harbor Bridge.

Professor Fels said they were given access to underlying financial models for the roads, which show revenue and profit forecasts, but the government’s legal advice prevented them from publishing the analysis.

In a statement, the NSW Department of Transport said: “The department’s responsibility is to ensure the appropriate governance structure is in place and to identify any legal risks to NSW.

Four men in suits sit around a round table to discuss the state of the New South Wales toll road network.

John Graham (left) and Allan Fels (centre) in 2023, when the report was commissioned. (AAP: Dean Lewins)

“This included legal advice on the publication of commercial information.

“As this is a complex and commercially sensitive matter, it is standard procedure to obtain specialist legal advice.”

In a separate election pledge, the NSW government said it would release key parts of secret contracts with toll companies such as Transurban, bringing the state in line with Victoria and Queensland.

Eighteen months later it has still not been delivered.

NSW Roads Minister John Graham said the government would release details soon.

“It may or may not happen this year, but it will definitely happen in the near future as part of this process,” he said.

Toll road giant Transurban and its investment partners own all of Sydney’s toll roads except the Harbor Bridge and the tunnel.

It is currently in discussions with the NSW government over the recommendations of the Fels-Cousins ​​report.

John Graham in a suit

NSW Roads Minister John Graham. (Four corners)

“We are working with the NSW Government and our partners to find a solution that benefits everyone, especially motorists,” Transurban said in a statement.

“We are also providing our customers with more detailed information on travel time savings and prices to make it easier for them to choose to use our roads.”

Rat race through suburban streets

Some freight and courier companies are advising drivers to avoid toll roads in Sydney due to rising prices.

Owner driver Walter Koppen, who delivers construction materials around the city, says he can spend up to 20 percent of his income on tolls.

“I think most trucks try to avoid toll roads,” he said.

Mr Coppen’s transport company has explicitly advised him not to use Sydney’s toll roads.

Walter sits on the back of his truck

Owner-driver Walter Koppen delivers building materials throughout Sydney. (Four corners)

In another case, Four Corners received a letter from courier giant Aramex sent to its Sydney drivers in August telling them not to use toll roads.

“Our top priority is to find the most direct delivery route and ensure this process is cost-effective,” Jason Bovis, general manager of Aramex in Sydney, said in a statement.

“Not using toll roads unless it’s mandatory is consistent with that.”

Mr Graham said the Government knew trucks were avoiding toll roads due to rising costs, leading to a run of rats on suburban streets.

“Higher fares make Sydney more congested,” he said.

“One of the real reasons to reform this system to zero tolls is that we can increase traffic in the tunnels, including truck traffic.

“But we can reform prices, if we get the balance right, then it can be good for everyone here.”

Watch the Four Corners investigation, Road Gold, on ABC. I’m browsing.