[Article] Tariffs at East, Westlink bridges to rise in January

Victor

http://home.eircom.net/content/irelandcom/breaking/2084067?view=Eircomnet

Tariffs at East, Westlink bridges to rise in January
From:ireland.com
Thursday, 4th December, 2003

Toll rates at the Eastlink and the Westlink bridges are to increase from January 1st, with the price of cars rising from €1.30 to €1.50.

NTR, which operates the bridges, said in a statement this morning that the increases were agreed in the original contract between NTR and the National Roads Authority in respect of a funding package of €23 million for the second Westlink bridge that opened in September.

The last increase in commercial vehicle rates was in July 2002. New commercial vehicle rates will also apply from 1st January.

It is expected that the contribution to the State from the Westlink toll facility, including licence fees, VAT and municipal rates, will be in the region of €29 million, up from €21.8 million in 2003.

The commercial vehicle rates being charged at Westlink are, on average, 68 per cent of the maximum toll rates that could be charged by NTR under agreement with the State, the company says.

However, the Dublin Chamber of Commerce has criticised the increases and said that, coupled with the increases in fuel prices in yesterday's Budget, the toll increases would make it very expensive to conduct business in south Dublin and that the knock-on effects would be felt throughout the country.

robbie1876

I have to say fair play to NTR for not raising the toll for 1 1/2 years. Compare this to An Post for example who are about to raise postal charges for the third time in 12 months. A 15% increase in my opinion is justified. Traffic has got at least 15% better since the 2nd bridge opened (northbound at least, can't say I notice any improvement southbound).

Signing up for EazyPass online gets you a 14% discount, basically countering the price increase.

Capt'n Midnight

It is expected that the contribution to the State from the Westlink toll facility, including licence fees, VAT and municipal rates, will be in the region of €29 million, up from €21.8 million in 2003.

And there was me thinking it only cost thirty million to make the bridge....
And they still charge if there is more than a 70 yard backlog...

Victor

Originally posted by robbie1876
I have to say fair play to NTR for not raising the toll for 1 1/2 years. Compare this to An Post for example who are about to raise postal charges for the third time in 12 months.

the difference is (a) An Post dropped their basic prices in the preceeding 15 years (b) An Post are in a loss making position and (c) An Post provide a universal service. The opposite is true of NTR.

robbie1876

a) An Post reduced their stamp prices every year for the last 15 years?? Can't say I remember this happening. They did increase prices in 1991 though, which was 12 years ago in fairness.

b) Can't dispute that An Post are losing money. However, surely if you want to turn a loss making business into a profit making business you don't increase your prices by 104%.

c) Sorry, you've lost me on this one. Are you saying that because our national post service delivers mail nationally that they can increase prices 3 times in 12 months? If NTR had toll booths nationally, would it then be ok for them to increase prices?

The point I was trying to make was that the climate of price increases over the last year (ESB, VHI, Iarnod Eireann etc) would have made it very easy for NTR to slip in a few unquestioned price increases. There is nobody stopping them, they can keep increasing until they reach the maximum the government has agreed with them. But they haven't taken the piss. And I applaud that (to a limited degree).

Victor

Originally posted by robbie1876
a) An Post reduced their stamp prices every year for the last 15 years??

No, I did not say that so don't misquote me. I'm saying that whiel a stamp used to be 32p, it went down to 30p and then only recently has it increased.

Originally posted by robbie1876
Can't say I remember this happening. They did increase prices in 1991 though, which was 12 years ago in fairness.

Apologies. It was so long ago I couldn't remember.

Originally posted by robbie1876
b) Can't dispute that An Post are losing money. However, surely if you want to turn a loss making business into a profit making business you don't increase your prices by 104%.

Where are you getting 104% from? And the price increase is not across the board - it is aimed at retail purchasers - bulk purchasers (ESB, government departments, comms companies) will get discounts. Like Easypass users on East/Westlink.

Originally posted by robbie1876
c) Sorry, you've lost me on this one. Are you saying that because our national post service delivers mail nationally that they can increase prices 3 times in 12 months? If NTR had toll booths nationally, would it then be ok for them to increase prices?

No. What I am saying is NTR got a cushy little earner, granted at a time of widespspread corruption (not accusing anyone). They got the first bridge grant aided by the EU (75%?) which was built for £30m. Real cost to NTR £7.5m, not sure how much the new bridge cost, but it was paid for before it was built.

Originally posted by robbie1876
The point I was trying to make was that the climate of price increases over the last year (ESB, VHI, Iarnod Eireann etc) would have made it very easy for NTR to slip in a few unquestioned price increases.

And they did.

Originally posted by robbie1876
There is nobody stopping them, they can keep increasing until they reach the maximum the government has agreed with them.

Well their price increases need government / local authority approval, but no, no one seems to be saying no.

Originally posted by robbie1876
But they haven't taken the piss.

Yes they have. Stop lying. :P

robbie1876

Where are you getting 104% from?

One of the price increases in August 2003 was from 47c to 96c for a packet <50g. An increase of 104%. Now to be fair, that is the extreme end of their increases, regular post went up from 41c to 48c, 17% increase. Don't forget, at some point in the not too distant future the EU are going to make An Post charge VAT on stamps, which consumers will no doubt perceive as another stealth increase.

No. What I am saying is NTR got a cushy little earner

Agreed. By the looks of the figures at the top of this thread, it's a cushy earner for the government too.

And they did.

No they didn't. The last increase on the Westlink for private cars was January 2002, when it went from €1.27 to €1.30 cos of the Euro. Can't remember how long before that it was when the toll went from 80p to £1.

Yes they have. Stop lying. :P

lol... why on earth am i trying to defend these guys anyway?