Toll freeze will put Malaysians into more debts

Lim Guan Eng, the secretary-general of DAP hit out at the toll freeze announcement made by Prime Minster Datuk Seri Najib Tun Razak saying that it was ‘meaningless’ as it would only cause more debts for the Malaysian people. Najib had on Friday announced that under Budget 2011, there would be no increase of toll prices at PLUS Expressway Bhd’s operated highways for the next 5 years, effective immediately.

Guan Eng said “While the people would save on toll money, they still end up paying toll-road concessionaire Plus Expressways Bhd large compensations. The compensation payments would only lead to an unhealthy increase in both Federal government debt and debt service charges. DAP is shocked at the revelations by UEM Group’s Datuk Izzaddin Idris that toll highway operator Plus could be compensated as much as RM5 billion by the Federal government over the next five years for not raising toll rates. Clearly freezing toll rates is meaningless as the people still has to pay through compensation payments by the government.

Nationalisation is necessary when toll concession operators like Plus have not only recouped their investment and construction costs but also maintenance costs and are earning pure profits from toll rates revenue collected. Failure to do so will not only create an unbearable financial burden to the people but also strain our country’s finances for the foreseeable future,”

He added that “According to the Finance Ministry’s Economic Report 2010/2011, the total federal government debt would soar by 12.6 per cent from RM362.4 billion in 2009 to RM408.2 billion in 2010. This meant every Malaysian would be in debt of RM15,118 as at 2010. In other words for every Malaysian born, he or she will be immediately in debt of RM15,118. If we take into account paying an extra RM1 billion every year to Plus, it is an expense and a debt burden that the country can ill-afford. Corresponding to the increase in federal debt, debt service charges had also increased from RM14.2 billion in 2009 to RM15.9 billion in 2010 and was expected to soar to RM18.6 billion in 2011. Many Malaysians are unhappy why the country has to carry such a huge debt burden borne by 27 million Malaysians for the benefit of one company. Clearly unless drastic action is taken, 27 million Malaysians will lose out to enable a company comprise of BN cronies to gain,”



comments


Malaysia is the one and only country where rich bugs get richer because they are guaranteed profits in business deals they make with the corrupt government. Eventually, the ones suffering most will be the rakyat. If toll rates rise, the effect is immediate, everyone has to pay more to travel. Now that rates are kept stagnant, the toll companies will not be making their "expected profits" and they will in turn claim against the government for lost profits. The government has to pay them as they have made a deal long ago. So whose money is the government using to pay off these companies??????