Amendments to the Transport Administration Act also provide for independent oversight of toll prices and the creation of an independent tolling customer ombudsman to deal with disputes and complaints between motorists and the operators of toll roads.
Amendments passed on Friday allow for the creation of NSW Motorways, a state-owned entity that will oversee a reformed toll road network and will be tasked with driving toll reform in conjunction the owners of the city’s private motorways.
The new entity, which was recommended by the independent Toll Review of Professor Allan Fels and Dr David Cousins, will own and operate tollways not subject to private concession arrangements like the Sydney Harbour Bridge and Tunnel and the Western Harbour Tunnel and M6 Stage 1 when they are complete.
NSW Motorways will oversee any future revenue adjustment mechanism to protect private toll concessionaires from losses from a network-wide pricing structure – but also ensure any windfall gains that stem from toll reform go to the NSW public, rather than private operators.
The entity will absorb the retail business and toll notice functions of E-Toll.
The law now allows the Independent Pricing and Regulatory Tribunal to monitor toll prices in Sydney, as well as facilitating the establishment of an industry toll customer ombudsman.
The Fels Toll Review highlighted that a key frustration for toll road customers is a lack of a clear, external dispute resolution body to resolve tolling complaints.
In parallel to legislating, the NSW Government is progressing negotiations with toll road concessionaires to get a better deal for Sydney motorists into the decades ahead.
Roads Minister John Graham said:
“The era of Liberal Party ‘toll mania’ is being consigned to history as we go about taking back control of toll prices and creating a fairer network for the most tolled city on earth.
“NSW Motorways was a key recommendation of the independent Toll Review and will be critical to drawing together the 13 – soon to be 15 – toll roads to implements a fairer, network price structure.
“These are important changes to the law that begin to transform the toll road system into one that puts the interests of motorists first. The independent pricing watchdog IPART will play a critical role in overseeing toll prices.
“These reforms are aimed squarely at assisting motorists and their families, particularly those in Western Sydney who simply can’t avoid shelling out on tolls that only ever go up either quarterly or annually.
“I do not believe the current ombudsman in the toll road sector is effective enough and a new, independent industry ombudsman is required to give motorists a voice.”
NSW Treasurer Daniel Mookhey said:
“Today marks a critical step towards untangling the mess of privatised toll roads that have trapped Sydney motorists in a cost-of-living nightmare.
“Having a legislative framework to create NSW Motorways, plus a pathway to an independent Ombudsman and bringing IPART to the table are key steps in reforming the tolling system.
“At the same time, we are progressing negotiations with the private motorway concessionaries, and I want to thank them for their continued collaboration.”
