Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
LAST UPDATE | 29 Nov 2022
WHILE GOVERNMENT ANNOUNCED that it would intervene to defer increases in toll charges on eight motorways for six months, TII Chief Executive Peter Walsh has said this evening that an “awful lot of discussions are yet to go on and I don’t want to pretend otherwise”.
Coalition leaders met last night and agreed that the increases will be delayed until 1 July, at a cost of €12.5 million.
However, appearing before Oireachtas Transport Committee, Walsh said “we are saying the cost of the deferral is yet to be determined”.
He explained that figures were provided to the Department of Transport that the toll increase would raise €12.5 million – but Walsh said this evening that costs associated with deferring the increase could be more.
“We don’t want to give the impression we can get this over the line for a certain number… we want to make sure there is an understanding of this,” he added.
Walsh said “I don’t want to tell the committee that we have this sorted”.
Tolls were set to rise from 1 January to their maximum rate due to an increase in inflation, which provoked anger from politicians as citizens grapple with the surging cost of living this winter.
Agreement needed
When asked by the committee chairperson Kieran O’Donnell whether there is agreement in principle, Walsh said the eight different toll operators must agree to deferral.
Cathal Masterson, TII Director of Operations said that he had been in contact with the operators today about the matter, stating they only heard about the decision of the deferral at 10am this morning.
He explained there are eight different contracts and if any one of those operators decide not to agree, they are entitled to levy the index-linked toll charge on 1 January.
When asked by O’Donnell when it can be agreed with all operators, Masterson said the operators agreed they would work at “breakneck speed” but that the board members of each operator will have to meet to sign off on the decision.
Walsh said he did not want to tell the committee that a decision will be forthcoming quickly, as operators might also need lenders approval also.
When O’Donnell asked if absolute clarity can be given to the public by the end of the week, Walsh said no.
Masterson said the dates of the board meetings are being set for mid-December. O’Donnell said that such a date was very close to Christmas, and asked if there was a way to expedite matters and bring forward board meetings.
“We are right up against Christmas, it is way too tight,” said O’Donnell.
The Government vowed to examine the looming rises after the issue was raised at Cabinet last week.
Explaining the increases, Transport Infrastructure Ireland (TII) said legislation links toll costs to the Consumer Price Index (CPI).
TII Chief Executive defended the controversial increases to prices in nine toll stations.
In his opening statement, Walsh told the committee members that TII receives approximately €200 million every year from the 10 national toll stations in Ireland – eight of which are operated by way of public-private partnership (PPP). The other two, on the M50 and the Port Tunnel, are operated by TII.
Walsh said: “This revenue is used to fund the asset renewal, operation and maintenance of the national road network. The 5,300km of national road network is essential to the economic and social life of the country.
“The network has an asset value of €31 billion (as assessed in 2019). The asset renewal, operation and maintenance of the network requires approximately €600m annually. The Department of Transport provides the balancing €400m from general taxation.
“This represents 2% of asset value and is barely adequate to maintain asset value.”
Walsh told the committee that revenue from the eight PPP toll stations is used to repay loans raised to fund the construction of the roads, as well as funding the operation and maintenance of motorways and dual carriageways.
He also noted that the TII does not have the right to unilaterally change the way the toll rates for these eight PPP concessions are revised. “Any proposed change would have to be the subject of negotiation.
“Negotiations of this kind could take many months, if not years, to successfully conclude.”
Transport Committee chairperson Kieran O’Donnell and Fine Gael Senator Jerry Buttimer asked why a red flag didn’t go up that this might not be the right time to roll out the increase.
Masterson said “congestion is no one’s friend”, stating that one way to reduce the numbers of cars on the M50 is to increase the toll charge. O’Donnell said he found that policy difficult to accept, stating that many people use the M50 out of necessity, not as a luxury.
Masterson said it is a confusing concept to explain, but stating the “medicine may not taste very nice” but the pricing mechanism is seen as a solution to congestion.
Walsh said should road users continue believe that they should not bear the costs the maintenance of the M50 will have to come from general taxation.
Minister for Agriculture Charlie McConalogue said the Government is striking the “appropriate balance” of recognising the cost pressures the public are under.
“I think it’s striking the right balance in terms of recognising the prospect, particularly the prospect over the next few months, where people’s energy levels are higher and dealing with the issue,” he added.
Prices can’t rise more than the rate of inflation and all nine roads will increase their tolls by the “maximum” level possible.
Figures show the CPI rose by 9.2% between October 2021 and October this year, up from an annual increase of 8.2% in the 12 months to September.
Walsh’s statement says: “In the event that a freezing of toll charges is agreed, the contractual entitlement to the index linking of toll charges would still exist. If inflation continues to rise, this will result in rebalancing of, and consequentially, larger increases to, toll charges in January 2024.”
“Any freezing of toll charges would also reduce the amount of money that TII receives under the revenue share mechanism of the PPP contracts.”
TII previously announced that they do not plan on changing tolls for the Port Tunnel but the M50′s tolls will rise by 20 or 30 cent depending on the vehicle category.
Tolls were multiplied by the 8.9% rate of inflation and then rounded to the nearest 10 cent.
A car on the M50 with a pre-registered tag will cost €2.30 from January, up from the current €2.10 charge.
The biggest change for drivers will be for those travelling the M50 in a car that hasn’t been registered, a current cost of €3.20 that will rise to €3.50.
Walsh will tell the committee that freezing M50 toll rates would lead to a reduction in revenue of approximately €13 million. “That reduction would have to be made up from general taxation as the costs of asset renewal, operation and maintenance of the national road network is subject to the cost increases caused by inflation.”
Additional reporting by Christina Finn and PA
To embed this post, copy the code below on your site
Issuing from the above article, toll roads produced a profit of almost €31m on at least one route last year (double the previous).
Not one toll route made a loss with most profits in the tens of millions on each one.
@Sequoia: how did we end up in this state. Fine Gael took over the reigns in 2011 – 11 years they’ve been in power and they more than doubled our national debt to €250bn and what’s to show for it – one extra luas line that doesn’t even connect with the existing one?
And that despite the cruel austerity they put on vulnerable people. Nasty incompetent party.
@Peter McGlynn: I hate Fine Gael as much as anyone but the motorway toll roads were all produced by Fianna Fail during the Ahern years. The west link bridge might go back to Haughey’s time.
@Ciaran O’Mara: fffg all the same. Thieves.
@Ciaran O’Mara: Fianna Fáil = 120bn and Fine Gael 250bn.
One as bad as the other. Think of what SF could do with a 130bn overspend in 10 years.
@Ciaran O’Mara: Did the EEC (as it was known) fund our Motorways? I can’t seem to find this info. Also every motorway in Ireland is owned/managed/maintained by companies based in mainland Europe .
@Frank Cauldhame: the EU structural fund itself didn’t fund the toll roads. That’s why they are tolled. Some of the money came as a loan from the European Investment Bank which is a separate institution of the EU.
@Peter McGlynn: 11 years too long…. but facts are facts, and our national debt is better than average. We are 58% tracking to 42% in the next 3/4 years. England is 90%. The US is 33 Trillon.. I don’t get the “Look at our national debt” argument.
@Ciaran O’Mara: Thanks Ciaran
I thought they were already raised to the maximum possible. Now they are already talking about the next raises?? Only in Ireland
How about no increases, ever?
Have these roads not been paid for a thousand times over already? How do they need to keep charging to use them…. Rip off
@Ronan Horan:
It would appear that way for the M50 anyway.
This article is almost 13 years old.
So what’s motor tax for ??
@Alan McDonagh: to pay for everything what other taxes are used for.
@Soeren Kuehling: and water, apparently
They need to meet the balance between hiking it so much that it becomes cheaper to bypass the toll, if you have the time to spare, it’s often only a few minutes longer to go around, and sometimes a cheeky way to take a leak or grab a sausage roll and a coffee.
@The Divils Avocado: have you driven through blanchardstown or lucan at peak times?
@Gert McNulty: LOL, have you driven on the M50 at peak times :) . Strongly considering starting to bypass these tolls, then they’ll be looking for a bailout, what a country if your a big company with a link to FF FG.
Toll bridge money is used to maintain 5300KM of Irish roads?
@David Corrigan: and yet the roads are in shi te
And for no reason they decided to put up the cost of charging EVs also by 50% .Whats the point? Theres no incentive to go electric here with those kind of rip off increases.
@Mike Hooper: It’s all a cod. Imagine how much they’ll charge when every vehicle is electric and we have no choice. They’ll use the old excuse of ‘pressure on the grid’.
@Mike Hooper: No one charges at public EV points unless they have to.
@Mickety Dee: Anyone who lives in an apartment or a house with no parking space outside has no choice about where they can charge their EV.
@Ronan Horan:
It would appear that way for the M50 anyway.
This article is almost 13 years old.
@Dónal Brennan: dirty pr***5
Am I the only one who thinks they should let it rise? Costs have gone up and we need to maintain this stuff.
@Craic_a_tower: yes
@Craic_a_tower:
Maintain what stuff exactly? The roads? Is that not what motor tax is for? It seems to me, paying tolls is to maintain the toll plazas, to give people jobs but ultimately to make profits for greedy companies.
I wouldn’t mind if the profits were being used for upgrades or new roads but take the M50 for example. It’s congested for large portions of the day, it’s exceeded its capacity and there is no plan for any additional or alternative ring roads.
@Dónal Brennan: Exactly.
@Dónal Brennan: motor tax has never paid for the roads. It doesn’t even come close to paying for the roads. It goes into general taxation bucket which the roads are paid for from. When they want to add cycle lane driver go on about motor tax which doesn’t pay enough for the roads but cyclists are apparently not allowed have facilities from their general taxes at a much cheaper price. The government agreed private public partnership and the income the state gets doesn’t pay for the roads. You are going to love the inevitable congestion charges in cities. Hopefully they will bring in a tax where you pay by use of the roads in the future. Not only that the government has to buy carbon tax credit so people can drive. Drivers do not pay their way as it stands
@Craic_a_tower: Motor tax, car insurance, DOE/NCT, service costs, fuel costs etc. All high costs to the car owner. Car owners are making a very very strong contribution to the tax bucket.
@David Corrigan: it still doesn’t pay for the roads and all the other aspects. You are subsidised to drive by others. Costs are going to continue to rise in order to drive. Most people are blind to the concessions car drivers are given and the damage of car reliance. The amount of room given to cars is insane alone but the fact it literally poisons the air we breath resulting in people dying is just ignored by most. The car is not that old but has done so much damage in that short time. People will have to drive less it is inevitable
@Craic_a_tower: How much is enough then? How much more tax does the working person have to give over until the system can maintain itself? It seems to be endless the amount of money that’s wasted.
On your second point. How does someone from say Abbeyleix get to an office in Dublin for 8AM everyday? Or someone from Meanus to Limerick for example?
Cars will be with us for a very very long time as there is no other way of moving high volumes of people from their homes to their workplaces in this country.
That is a fact that you simply have to understand and deal with.
@Craic_a_tower:
You might direct me to where there is a budget deficit from road tax income and maintenance expenditure. A quick Google search tells me that €6.2 Billion is generated annually from motor tax (https://www.irishtimes.com/business/economy/motor-vehicles-generate-6-2bn-in-taxes-for-state-says-report-1.4239993) and the budget for existing road maintenance & new developments including PPP’s for 2023 is €1.375 Billion (https://www.gov.ie/en/press-release/9d6ba-budget-2023-continues-to-keep-costs-down-for-commuters-and-ensures-that-transport-developments-can-continue-at-pace/#:~:text=National%20Roads%20Programme,the%20development%20of%20new%20projects.)
There’s obviously a big difference there so what am I missing?
@Craic_a_tower: Drive less and it rains 200 times a Year in Ireland Mmmmmm
Sheltered Bike tunnels anyone…
@Larry Rawson: I am game – every bike lane should be sheltered.
@Larry Rawson: and HEATED
@Dónal Brennan: Spot on !
Well we can’t say we weren’t Tolled.
This Walsh guy sounds like a spoofer. Says the increase would take in 12.5 million a year but has no idea how much it would cost to defer it for 6 months? My 4 year old could probably answer that for him.
It is interesting to read that maintaining the national roads network is still funded in part from general taxation as well as the tolls collected. While the capital outlay may have been recovered there are also current expenses. So the idea that the toll roads are paid for is a fallacy as there are constant maintenance or upgrades undertaken. To think any other way is like a person working out the cost of driving without including fuel or service or maintenance. For many years I refused to use the M50 toll bridge where other options were available – but I do understand that the toll bridge would never have been built without a toll. I also understand the need to continue to spend on the road network – but I prefer general taxation or annual motor “tax” to tolls myself.
have your say