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Increasing tolls when cost of operations at booths is plummeting

  • 17-11-2022 11:09am
    #1
    Registered Users, Registered Users 2 Posts: 5,604 ✭✭✭


    I know they have a link to the CPI to justify increases but to be fair, they operate with skeleton staffs (many unmanned at all during night time)

    Are we being taken for a ride here? Other countries have removed tolls as the years pass



«1

Comments

  • Registered Users, Registered Users 2 Posts: 7,907 ✭✭✭munchkin_utd


    In France the tolls reduce over time, but arent removed from what i gather. Italy seems to be the same, and in both cases tolls are far higher than in Ireland because nearly all motorways are tolled.

    But yea, it is sortof pulling the ps that they are going for the highest possible toll rise , linking to an inflation rate which is largely food and energy related, and not really linked to their ability to cover finance repayments and minimal enough running costs.



  • Registered Users Posts: 146 ✭✭Mrs Dempsey


    When I pay a toll, presumably it is not to cover the tool booth infrastructure staffing costs alone.

    Setting up a booth to pay for the booth seems somewhat a futile cycle.



  • Registered Users, Registered Users 2 Posts: 69,592 ✭✭✭✭L1011


    Their main maintenance cost is linked to oil prices - asphalt - admittedly.



  • Registered Users, Registered Users 2 Posts: 7,409 ✭✭✭plodder


    Interesting that the state owned road tolls are being increased by 9%, though they have discretion to forego any such rises. It kind of undermines any argument that the state makes where cost increases should be sucked up, and not passed on through higher prices/wages, potentially leading to an inflation spiral. If anything, the state should be taking the lead to avoid that.




  • Registered Users, Registered Users 2 Posts: 19,040 ✭✭✭✭Del2005


    When was the last time a tolled road was resurfaced and when is it due again?

    The toll rises are a blatant money grab and will result in more costs to the state as more people will avoid the safe motorway and use local roads. In 2018 a fatal crash cost €1.7m and a serious crash was €400k, how many more crashes will result from this increase?



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  • Registered Users, Registered Users 2 Posts: 69,592 ✭✭✭✭L1011


    Pretty much eternal ongoing maintenance on all of them. They have to kept to a specific standard, much higher than TII enforces on it's own roads, and the entire surface has to be replaced less than 10 years before the end of the contract in most cases.

    The m50, which has a maintenance contract, has constant partial overlays of specific lanes as they begin to wear



  • Registered Users Posts: 3,863 ✭✭✭roadmaster


    Travel the M1 Northroute the surface is RAF in parts for a long time



  • Registered Users Posts: 437 ✭✭TipsyMcStagge


    It is pure profiteering but they are under no obligation to make it fair.



  • Registered Users, Registered Users 2 Posts: 6,887 ✭✭✭zg3409


    To be fair I would drive less and I moved house closer to work to avoid tolls.

    I drive an EV and I get 50-75% off toll prices and about 80% off fuel equivalent costs due to efficient EV, but I still moved closer to work to remove toll and reduce commute and wear and tear on car. I know many don't have the option and some areas have no tolls while others pass through 2 different tolls on the way to work.

    They are an inefficient way to collect taxes and waste a lot of time on billing and accounts and letters and staff, they do slightly help reduce unnecessary trips particularly through the port tunnell at peak times.



  • Registered Users, Registered Users 2 Posts: 1,978 ✭✭✭kravmaga


    This is just pure corporate greed, Govt did not see this one coming apparently. Big shock there , they havent a clue whats going on most of the time, lol

    What will happen here is motorists and heavier vehicles like rigids, trucks , HGV will not use the by passes and will revert to going through the towns to avoid the tolls.

    https://www.rte.ie/news/ireland/2022/1117/1336621-tolls-ireland/



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  • Registered Users, Registered Users 2 Posts: 7,508 ✭✭✭fliball123


    We are now being tripled taxed for driving, tax on petrol/diesel, motor tax and tolls all 3 of these have gone up in the last while in our supposed cost of living crisis at what point is the M50 and other roads that are tolled paid for and at what point can we say enough is enough? If there was decent public transport available people would use it but the majority of the country simply has not got it. Where the hell are our taxes going?



  • Registered Users Posts: 431 ✭✭Jeremy Sproket


    What's wrong with paying a bit towards using what is very good infrastructure? Ireland, to be fair, has a very good motorway infrastructure. It mightn't be that extensive, but what we do have is good. They're one of the few things we did right here.

    In saying that, I always believe that the M50 should've been free from the get go. Yes, the operator and organisation that built it had to get paid, but they could've clawed in that money by tolling the city centre roads. It's farcical to build a ring road with the sole intention of alleviating city traffic ..... then charging people to use it, thus forcing people onto the roads that they were trying to declog in the first place. There's little or no reason to bring a private car into the city centre.



  • Registered Users Posts: 984 ✭✭✭Still stihl waters 3


    Expect the costs of goods to keep increasing also, 6.40 previously for a lorry to go through most tolls, more cost to companies that will have to be passed onto the consumer



  • Registered Users Posts: 75 ✭✭b v


    It’s a paltry increase in the grand scheme. Imagine €6.40 divided between all the goods in the lorry!

    In saying that, maybe we should increase tolls for private vehicles and make commercial vehicles free.

    Post edited by b v on


  • Registered Users, Registered Users 2 Posts: 11,392 ✭✭✭✭Furze99


    The state is one of the biggest hypocrites when it comes to price hikes. Think how many times you hear politicians criticising private enterprises for putting up prices.



  • Registered Users Posts: 1,609 ✭✭✭Tonesjones


    "Where the hell are our taxes going?"

    Public sector pay

    Welfare

    NGOs



  • Registered Users Posts: 984 ✭✭✭Still stihl waters 3


    True but its another cost to an industry that's pin to the collar already, inevitably all these small increases end up taking money out of workers pockets



  • Registered Users Posts: 75 ✭✭b v


    Still what?

    It’s a couple of euros increase divided against all of the goods in a huge van or lorry. You’d spend the same amount idling in traffic or going too hard on the accelerator.



  • Registered Users, Registered Users 2 Posts: 731 ✭✭✭Kurooi


    I was under the impression that toll pays for the road I'm driving on. That at least being the logical reason as to why I (the active user of it) am paying it rather than it being charged out of general tax base.

    And 99% of the cost has been incurred, the ongoing maintenance is a fraction of the cost. So yes hiking that to inflation seems an insult.

    We are all just used to being taken for a ride.



  • Registered Users, Registered Users 2 Posts: 1,786 ✭✭✭DownByTheGarden




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  • Registered Users Posts: 984 ✭✭✭Still stihl waters 3




  • Registered Users, Registered Users 2 Posts: 69,592 ✭✭✭✭L1011


    The construction cost has been borne but the debt to build it with probably hasn't been paid back yet and has ongoing repayments and interests.

    The Waterford bypass will probably never pay its loans back. It isn't covering interest, the opco loses money every year. They're nearly halfway to when they have to hand it back now.

    Without checking, I imagine the M1 and M4/M6 are doing well but the others... not so much. The M3 and N18 get some minimum traffic guarantees, pre-COVID the M3's wasn't paying out anymore as they had gone over the minimum - I don't know about now as it won't be in the TII accounts for a year or two.

    DPT and M50 are owned by the state and operated under contract, East Link is owned by the Council as it reverted when its contract expired.



  • Registered Users, Registered Users 2 Posts: 7,508 ✭✭✭fliball123


    We do pay for this infrastructure, we pay income taxes, motor taxes, carbon taxes, VAT, Stamp duty, DiRT, CAT, CGT, Corpo tax, property tax. The issue here is very little money gets ring fenced it goes into one big pot and this year as a population we paid more than our fair fecking share to cover the cost of the M50 and every other toll bridge going. As a citizen I would like to know what exactly is our taxes paying for I see zero benefits from it from where I am if I have to use a state resource it usually costs me more as I use it.



  • Registered Users, Registered Users 2 Posts: 7,508 ✭✭✭fliball123


    Its not really when calculated on an annual basis and added onto the already over loaded extra expense people have to pay in this country. So can we say lets cut politicians wage to the same amount as its only a paltry cut? Stupid argument the amount is not the issue.



  • Registered Users Posts: 38 Imeacht gan teacht ort




  • Registered Users, Registered Users 2 Posts: 761 ✭✭✭GSBellew


    Lots of the M1 has been done recently, the CRG PPP section is from Junction 7 to Junction 18, anything outside of that is nothing to do with the M1 toll.

    I drove both ways the other day & can't say I noticed anything bordering on rough.



  • Registered Users, Registered Users 2 Posts: 5,604 ✭✭✭veryangryman


    How long is left on each PPP contract? I wonder if we can lobby our politicians when the time approaches to remove the tolls when they complete



  • Registered Users, Registered Users 2 Posts: 69,592 ✭✭✭✭L1011


    Most are 30 years from opening. The last to open were the Limerick Tunnel and M7/M8 in 2010.

    The M1 from 2003 would be the next to lapse assuming it is 30 also, however that contract was odd in that a different bit of untolled road was built later so it may not be the same



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  • Registered Users Posts: 3,863 ✭✭✭roadmaster


    Its being a while since i was on it but around the toll it was very bad. It will be the 1st of the 2000s PPPs to come back under TII control



  • Moderators, Entertainment Moderators, Science, Health & Environment Moderators Posts: 14,463 Mod ✭✭✭✭marno21


    I feel I'm in the minority here but I think more toll roads would be welcome. Would you rather pay a toll to use an M20, N17 dual carriageway from Knock to Coolloney, Cork North Ring Road etc or continue to use the current roads?

    Some of these deals also have turned out to be great bits of business done by the State. What do you think the chances of the N25 Waterford bypass being built in this day and age are? The PPP concessionaire got absolutely hosed on that deal and will make a substantial loss as L1011 posted to above.

    It's not all corruption and racketeering as some would have you believe.



  • Registered Users Posts: 910 ✭✭✭brianc89


    The increase is justified - these businesses are private, not public.

    • They have higher debt interest costs.

    • They have obligations to their Investors to continue making a profit. If they stop making a profit, investors will stop investing.

    • Their "profit" numbers follow accounting rules, therefore they have to account for future maintenance upgrades on the road, which have gotten significantly more expensive and will continue to increase...



  • Registered Users Posts: 910 ✭✭✭brianc89


    An example of accounting:

    • Let's say the road opened in 2010 on a 30 year contract. Before handing the road back to the state, the road needs to be resurfaced.

    • This will cost est. €50m in 2040. Based on accounting rules, this cost is incurred annually (€1.6m per year from 2010 to 2040).

    • However, in 2023 inflation has been running at 10%, the resurfacing is now expected to cost €65m in 2040. The €15m additional cost needs to be spread over the remaining 17years (from 2023 to 2040), which is an additional €0.9m per year.


    Bottom line - inflation affects everything. More than you think.



  • Registered Users, Registered Users 2 Posts: 1,765 ✭✭✭KrisW1001


    Facts will only go so far in this argument: Road Tolls are one of those things that gets the call-Joe-Duffy reflex going in lots of people, but as noted, as a State, we win as often as we lose on these deals.

    Our tolls aren't even high by international standards. One thing I saw in Texas (Dallas) is that they have managed toll lanes: there are tolled lanes on the main highway, which you pay a toll to use, but the road operator guarantees that you will have a minimum travel speed of 50 mph while on those lanes. To keep this promise, they use demand pricing, so the price to use the toll-road goes up as the number of users on the road increases (or rather, as the average speed falls closer to 50mph). At peak periods, tolls can hit $20.

    Point tolls (like the M50 tollgate) are falling out of favour these days, and "Road Usage Pricing" is the new buzzword: you pay a fee based on how much of the road you use, not just because you passed one short tolled barrier. TII was looking for interested parties for a pilot on M50 for this. The advantage is that it stops toll-dodgers creating traffic jams on parallel routes, and the disadvantage (not really a disadvantage, tbh) is that the people who'd been getting a free ride because their journey didn't pass the tollgate end up having to pay their share too.



  • Registered Users, Registered Users 2 Posts: 5,604 ✭✭✭veryangryman


    What other countries do doesn't really affect my thinking. It is poor practice to take people for a ride and we don't need Joe Duffy to highlight it.

    The gov are going to be "heroes" now for cancelling these small increases. The state needs to give these roads back to the people at the end of the contracts.



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  • Posts: 0 [Deleted User]


    Don't forget the cost of building the road in the first place.



  • Posts: 0 ✭✭✭ [Deleted User]


    And a 250+ Billion debt that has to be paid back.



  • Registered Users, Registered Users 2 Posts: 4,561 ✭✭✭AugustusMinimus


    Why are so many ignoring the cost of debt on financing the roads. This is by far the biggest costs these tolls are financing. As interest rates go up, so does the cost of debt.

    Another poster complaining about the government upping prices while complaining about the private sector doing so. These price increases are baked into contracts with toll operators with tolls costs linked to interest rates and inflationary increases. No way around these without government reneging on contracts. Renege on a contract and say bye bye to any future PPP roads.



  • Registered Users, Registered Users 2 Posts: 1,765 ✭✭✭KrisW1001



    I was trying to keep the discussion some way within the topic of "Roads", and away from general complaining: these threads can degenerate quickly into sub-Clarkson levels of "debate" about "road tax" (no such thing) and what the government "wastes" money on...

    And if you care about tolls, you should care about Road User Pricing - it's going to happen here sooner or later. For M50 it would probably reduce your daily cost, as you're no longer paying for everyone else on the road who didn't cross the Liffey)



  • Registered Users, Registered Users 2 Posts: 7,508 ✭✭✭fliball123


    People like you need to educate yourself on how much Irish citizens paid in tax over the last 2 decades not to mention borrowing almost 250Billion on top. This is the last word on this anyone spouting we should be paying more in tolls has a vested interest that they are not willing to share. We have paid for roads over and above in taxes and borrowings already - toll roads should be a thing of the past. We need an explanation as to where all of this money has gone from government before anyone imposes any extra taxes or tolls.



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  • Registered Users, Registered Users 2 Posts: 1,765 ✭✭✭KrisW1001


    And right on cue...



  • Registered Users, Registered Users 2 Posts: 7,508 ✭✭✭fliball123


    Any discussion on tolls needs to be taken in the context of what people are already paying. Right on cue will you go and do one. We are paying income tax and pay it at a very high rate at a very low level of income that should cover all roads. Then we are also paying car tax that should cover roads again and we are also paying tolls on roads that using the first 2 taxes I mentioned have already been paid for. How much more should we have to pay for infrastructure that is vital to the country and which has already been paid for and pointing to other countries and saying ahh but the US pay this or France pay that is utter nonsense. Like I say someone in power needs to explain where the 90 Billion in taxes paid into the coughers this year has gone? Where the 240/250 billion we have borrowed over last decade and a half has gone and why as a person living and working here my rights to a decent public service has been diminished continuously as has the % of cash I have left in my pocket after tax over the last 2 decades due to paying all of the above taxes and other stealth costs like bin collection which used to be paid for out of general taxation and because I work I don't have free access to any service and I have to pay again to cover things like health care, etc. So see your cue my friend go find a pool table and play with your balls as you cannot be serious about a debate if you leave possibly the most important detail out of this discussion as in what we already pay.



  • Registered Users, Registered Users 2 Posts: 6,869 ✭✭✭Alkers


    Other than the m50, the money doesn't go to the state it goes to the road operators. They are experiencing inflation along with the rest of us and have no other source of income



  • Registered Users, Registered Users 2 Posts: 7,409 ✭✭✭plodder


    I don't think there's any way round the toll increases for privately contracted roads. It's the state owned ones where there is some flexibility and the busiest toll road by a country mile is the M50.



  • Registered Users, Registered Users 2 Posts: 1,765 ✭✭✭KrisW1001



    Okay, and ignoring the lame insults, here’s the debate. Roads have to be paid for. As I see it, you have a four choices in doing that:

    • keep the tolls.
    • drop the tolls and put up taxes to cover the shortfall.
    • drop the tools, but stop spending money on other things to cover the shortfall
    • drop the tools and just keep borrowing money to cover the shortfall

    The problem with the fourth option should be obvious. Go for the third option, and there’s someone who'll be just as angry as you are if the thing they need gets hit with a tax cut.

    I suspect you don’t care, but my preference is actually option 2: raise taxes, but tolls are fine too if they’ll get the roads built.



  • Registered Users, Registered Users 2 Posts: 24,375 ✭✭✭✭Larbre34


    Option 5 - keep the Tolls as they are and divert funding from Departmental underspend in other functions in 2022, or from the current budget (income) surplus already accrued in 2022.

    I would suggest they see to it quick as well, as I get the feeling the normally patient and stoic Irish people will begin taking lessons from our French cousins if these unjustifiable increases keep being foisted on ordinary tax payers.



  • Registered Users, Registered Users 2 Posts: 7,508 ✭✭✭fliball123


    Why do we need to put up taxes. We had 90 billion in taxes taken this year alone. Surely what ever the cost of maintaining the road network should of been well covered in that. We waste way too much money in this country. Get rid of tolls and spend the money on actual infrastructure instead of waste. There is a litany of waste we spend on both welfare and public sector pay and pensions that could be looked at to make savings. They are the 2 biggest areas of spend. I find it galling we spend more on the likes of our HSE per head than most other countries in the world and yet we get one of the poorest return on that money spent. Add in anyone working has to pay on the double for private health care or in effect they pay to jump the bloody queue to access services. So option 5 no more taxes or tolls and a route and branch review on what is spent in this country and some accountability from politicians downwards with regards to how the money taken in is spent with the money saved within a year or 2 we could probably fund our road maintenance for the next decade and then we could force a CPO with regards to the roads privately tolled. Get them under state control on the grounds of the public good.



  • Registered Users, Registered Users 2 Posts: 7,700 ✭✭✭Gusser09


    Exactly I won't be expecting my groceries to go up as a result.

    😂



  • Registered Users, Registered Users 2 Posts: 14,456 ✭✭✭✭ednwireland


    Operators would have to be compensated if toll rises deferred, reduced - Ryan


    of course they would



  • Posts: 266 ✭✭ [Deleted User]


    The stretch of tolled motorway just beyond Portlaoise is the only part of the M7/M8 route between Cork and Dublin with relatively poorer surfaces. The publicly managed rest of the route is absolutely flawless and extremely well maintained.

    That little stretch of PPP is full of weird square patches in the surface and has bumps.

    The inability to take credit / debit cards on some of them is a joke too. They should be obliged to take cards. It’s a total mess for tourists and anyone caught out without change.

    The ability to accept contactless payment should be mandatory. Every tiny corner shop in the country can manage it at this stage!



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