Earlier this week, it was reported that the government had postponed plans to abolish toll collection because it does not have the means to absorb the financial impact of such a move, with works minister Baru Bian saying the government would have to pay concessionaires an estimated RM400 billion in compensation if tolls were abolished.
However, Damansara MP Tony Pua says that a toll buyout will cost less than RM400 billion, because that figure is an estimation by the previous Barisan Nasional (BN) government, which takes into account forecasted profits.
Pua, who is also the special officer to finance minister Lim Guan Eng, said that any compensation would be paid based on the rate included in the contract and exclude future profit, reports The Star.
“That is why it will not reach RM400 billion. The figure that we will use – and at the moment we have no intention to do so – should we decide to buy out toll concessionaires will only be based on the contract compensation rate, which is the value of the construction cost,” he told reporters.
Meanwhile, when asked by reporters, Baru admitted that the RM400 billion figure was that based on BN’s findings, Berita Harian reports. “Yes, (RM400 billion) is from the PEMANDU report done by the previous government,” he said.
He acknowledged that the quoted sum includes future compensation and benefits as Pua indicated, but said that there was no need for the government to recalculate the cost of a buyout. “That (re-cost) is irrelevant as the government has decided to postpone (the toll abolishment) because of the country’s financial situation, so there should be no dispute about cost,” he said.
He declined to comment on Pua’s claims that the cost of the acquisition would cost less than RM400 billion. “If he said so, there must be a basis behind the figure, but I can’t deny it or say it is wrong,” he said.
In its GE14 election manifesto, Pakatan Harapan (PH) promised to abolish tolls in stages if it formed the federal government. Baru had said that the plan to abolish toll collection would be explored when the country’s economy stabilises.
“After taking into account this factor (of having to fork out RM400 billion), the government has agreed to postpone the proposal to abolish tolls until our economy really stabilises and allows for it. The government will, however, study other options that we may deem to be more practical in order to reduce the cost of living for the rakyat,” he said at the Dewan Rakyat earlier this week.
Looking to sell your car? Sell it with Carro.
Why yes! They r correct! Rm399 Billion is definitely less than Rm400 Billion!
Jolly gud maths from our astute ministers. Just need to double confirm their decimal points placement, alrite.
will the peasants enjoy toll free highways buy will have their annual dividen kwsp of 2% only?
Peasants? What peasants? In New MY, peasants have no place here. The country will be unaffordable for them to live here. Peasant problem solved.
LOL why discriminates prejudices the peasants? they owe you monies?
Tell that to New MY, its unaffordable to the poor now.
Dividen kwsp 7%.
lupus gst 6%.
Double bonanza wuii
“After taking into account this factor (of having to fork out RM400 billion), the government has agreed to postpone the proposal to abolish tolls until our economy really stabilises and allows for it.”
For how long YB? Till the next election? And than make a new promise? Feduplah.
Saya putar Halim!
Another janji capati. They should have known the figures even before taking over the government. Seems to me like the 1 trillion debt is the go to excuse for the Pakatuns.
Tony Pua said it will cost rm25billion only maa.. siapa tipu siapa l0rr? Salah titik perpuluhan lagi kah?
Dear Gov,
We do hope for less toll and abolish by stage throughout few years. Not one swoop impossible promise that will never be granted in next 10 years. Even 25% reduction is huge for highway users.Sincerely, rakyat.
Thank you.
The janji is not to reduce toll, but to abolish it. Stick to the promise.
Tak baca censession lah tu..standardlah bila nak abolish kena masukkan “forecasted profit” tu antara isi contract kot.
Bongok Tony Pua, main cakap je.
Cuba refer balik berapa kena bayar masa Grand Saga ABolish one toll in 2012.
So after abolish toll,will it mean they have the right to increase tax?If yes ,I’m not supporting this nonsense.
You have no right to object since the rakyat has voted for it.