Why even impose toll?
I think this can be easily resolved. The state has large cash reserves, according to what they tell us. So, if the three companies still want to increase the toll, then the state can offer to compensate the companies on the differential if they do not increase it and leave it as it is.
THE CORRIDORS OF POWER
Raja Petra Kamarudin
Selangor orders PKNS to stop toll hike
(TMI) – The Selangor government has ordered the Selangor Development Corporation (PKNS) to stop the proposed toll hike at the three highways in which it has a stake.
Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim said the EXCO decided on the move, as it did not want the public to be burdened.
“Through the GLC, we have some equity in some of the concessions. We have directed the PKNS board to oppose the move,” he said today after chairing the weekly EXCO meeting.
Khalid added that PKNS had more than sufficient returns on its investments in the state’s highways.
“There is no need to increase on its returns with higher tolls,” he said, adding that the increase could be carried out despite PKNS’s objection, as it was a minority shareholder.
Opposition leader Datuk Seri Anwar Ibrahim earlier at a press conference said Pakatan Rakyat-led Selangor government will reject the impending toll hike through shares it owns in two highway concessionaires.
He said state government owns 30% of the Kesas highway through state-owned Selangor State Development Corporation and 20% in Sprint and the Lebuhraya Damansara-Puchong through Kumpulan Perangsang.
Anwar told reporters today that he has discussed the matter with Selangor Menteri Besar Tan Sri Khalid Ibrahim, and they have agreed to use the state’s minority shares to oppose the toll hike.
“They have a right to object as minority shareholders,” he said, adding that the Selangor government will also impose strict terms and conditions on companies involved in building new highways.
Some of the proposed measures by the state government include the construction of new highways only if the terms were fair to the public and that toll companies were allowed to take state land if the conditions pertain to fair toll prices.
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The Selangor state government does not want a toll increase on three highways that it has a minority interest in because they do not want to burden the rakyat. However, the Selangor Menteri Besar said that the increase could still be carried out despite the state government’s objection since it is a minority shareholder in these companies.
I think this can be easily resolved. The state has large cash reserves, according to what they tell us. So, if the three companies still want to increase the toll, then the state can offer to compensate the companies on the differential if they do not increase it and leave it as it is.
To take this one step further, the state can ask that not only the toll is not increased but that it is reduced to, say, half the current amount. And the state will compensate the toll concessionaires on this reduction as well.
Then Pakatan Rakyat would be keeping to its election promise that Malaysia would have toll-free highways if they ever came to power. No doubt the state would be paying a subsidy to the highway concessionaires. But then did Pakatan Rakyat not oppose the removal of subsidies on top of opposing the imposition of toll?
Hence Pakatan Rakyat would be killing two birds with one stone — pay subsidies plus reduce the toll at the same time. Then Pakatan Rakyat can loudly boast that it makes election promises and keeps them as opposed to Barisan Nasional that makes election promises but does not keep them.
