Dáil debates

Thursday, 17 November 2022

Saincheisteanna Tráthúla - Topical Issue Debate

Road Tolls

4:40 pm

Photo of Duncan SmithDuncan Smith (Dublin Fingal, Labour)
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The increase in tolls came as a bolt out of the blue for everyone, including Government, today. I am probably the only Deputy in this Chamber who does not have to go through a toll to get to Leinster House. I am looking at the M7, M8 and M9. We are all used to paying tolls. The M50 and the Dublin Port Tunnel are in my county.

This is not about tolling as a revenue raiser. Nobody likes paying tolls but it is accepted across the world as a way of paying for a road system. This is not about raising money for climate or congestion measures. It would be a totally different argument if it was. This is raising tolls to the maximum allowable under the existing contract by eight private companies in PPPs with the State for the running of a toll road system and the M50, which is wholly State-owned. The M50 brought in €140 million in revenue last year, which was a year of curtailed movement and economic activity, and €1.2 billion over the past ten years. These are huge revenue raisers for the State for reinvestment in our road network.

What has happened now is just a undefined and unexplained grab for the maximum allowable revenue by these companies under the guise of keeping up with inflation. We have an Oireachtas transport committee, a Committee of Public Accounts and the Dáil. We have spokespeople who can be contacted directly. We have plenty of opportunities for TII to come to us and say "we know we are in a cost-of-living crisis but these companies feel they need to raise that" and to let us interrogate that. I do not believe they need to raise tolls. The Tánaiste said today that he is not happy with it, that it caught him by surprise and that now this has been announced, the Government will engage. I hope that as the sun sets and rises tomorrow, the Government does not think this has moved on and that people will just absorb another ten, 20 or 30 cent increase in their tolls. I will use my local example. If you have to travel from Swords to Ballymount to go through the M50 every day, that is €110 to €120 per month for tolling alone excluding fuel costs, which as we know, have increased by 60% to 70% over the past year. We know the external reasons for the increase in the price of fuel. We will not go into them. However, this is something the State has a direct interest in and can influence and control. I know the Minister of State does not have responsibility for this but we cannot just have a script that mentions the contract and TII. The Government can act here. It can contact TII. TII will accept a phone call. The Government can engage with these companies.

People are making micro-savings in their weekly budgets to put food on their table and heat their homes. Everything is down to the euro and the cent so this makes a big difference. This cannot just be allowed to slip through. There should be a price freeze. I want to be clear that this is not about tolling in general. It is about this toll and this price increase.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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I think I drew the short straw today. I am taking this Topical Issue on behalf of the Minister for Transport. I was very glad that I was here for Leaders' Questions because this issue was raised and the Tánaiste answered and it was also raised under Questions on Promised Legislation. I reiterate what the Tánaiste said today. He said that we are not happy about it and that "obviously, news of the increase is not welcome.". He was unaware of it before it happened and he said the issue would be taken up with TII when the details of its proposals are published. I welcome the fact that the Government will take it up with TII because the setting of tolls is a statutory function of TII. In line with that statutory function, the TII board has agreed to a toll increase for 2023 on the M50. TII has also reviewed and agreed with the toll increases submitted by the PPP companies for the eight PPP routes. There will be no changes to toll rates for the Dublin Port Tunnel.

Tolls will increase because of the consumer price index, CPI, calculations carried out each year. The CPI increased by 8.6% between August 2021 and August 2022 and this has resulted in increased tolls on all eight PPP schemes and on the M50. The by-laws for each individual toll scheme set out the basis for calculating the maximum toll for each year. These increases include a 30 cent increase for cars without tags or video accounts on the M50 bringing the toll paid to €3.50. I am glad I do not have to travel that route every day. On the M1, there will be an increase of 10 cent for cars, which brings the toll to €2.10. This has been driven by inflation of 8.6% based on the CPI and is within the relevant bye-laws for each scheme. As required by the legislation, TII will shortly publish details of the proposals in the national media prior to their introduction. That is what the Tánaiste referred to today. The issue will be taken up with TII when the details of the proposals are published. I take on board the Deputy's point. This is not about tolls per se. This is an increase in the cost of living for people who have to travel on tolled roads to and from work five days a week.

I am with the Deputy on this issue. This came out of the blue. It was not what we were expecting and I welcome the Tánaiste's words today.

4:50 pm

Photo of Duncan SmithDuncan Smith (Dublin Fingal, Labour)
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I hope he follows through. I was not expecting this today. I was not down to speak today. I am usually a suit man when I am speaking in the Dáil but this issue is such that I had to submit a Topical Issue matter. People are angry about this. Sometimes an issue can be the straw that breaks the camel's back. These tolling companies do not have to put their prices up. I have never read an article stating that tolling companies have lost money or even broke even. These are cash cows and rake in the money. It is not just on the M50 but all over the country. This is a licence to print money. These are some of the most attractive companies for public-private partnership, PPP, contracts. They are cash cows.

This is gouging at a time when we have a cost-of-living crisis where every cent counts. I call on the Government to take action and put pressure on these companies. They will have to respond because, ultimately, the Government and the State are the gatekeepers for all future contracts. They own the roads. If the Government and the State come down heavily on these companies, they will have to respond and extend a freeze through the winter and into 2023. We cannot just accept this development based on some loose inflationary reason. These companies are cash cows and this is gouging people. The Minister of State has said she is with me.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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Yes.

Photo of Duncan SmithDuncan Smith (Dublin Fingal, Labour)
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I think everyone in this House is. I have had representations on this issue from all over the country today, as I am sure everyone else has. People do not want to accept this increase. It is just too tough for them.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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I will set out the position. Toll revenue is used for purposes that include motorway maintenance, toll collection and operation and for the maintenance of the wider national road network. Nobody is happy about this increase, but these are the facts. The money is reinvested. Returning to the point the Deputy is raising, in a time of inflationary cycles people are at the pin of their collars. This development goes against everything we tried to achieve in the budget. This week, for example, recipients of the fuel allowance will get a one-off payment of €400, while anyone on the living alone allowance will receive a payment of €200. Carers and those on disability payments will receive a one-off payment of €500. This is welcome and will go some way to alleviate the pressures. Moving away from the script, what we heard today concerning an increase in tolls is in total contradiction in this regard. I will certainly bring the Deputy's concerns back. As I said, I was heartened by what the Tánaiste said in the House today. He repeated that twice when the matter was raised, so it is timely that the Deputy raised the issue today.