407 defends rate increases for cars and trucks

TORONTO (Jan. 5, 2004) — 407 ETR consortium, the owner of the private toll highway near Toronto, shot back at the Ontario government last week after the Liberals reiterated pre-election statements to freeze and roll back toll rates on the highway.

407 challenged statements by the government that the highway group is not authorized to change toll rates. Newly-appointed Ontario Transportation Minister Harinder Takhar said government lawyers are now poring over clauses in the contract that require 407 ETR to justify increases to Queen’s Park. He vowed to use every legal option to block a recently announced rate hike.

“We completely reject the position communicated by the Minister of Transportation,” said Dale Albers, manager of public relations for the highway. “Our contract with the Government does not require toll rates to be authorized or approved by the Government of Ontario. We disagree with the Government’s view that a Change Request is required.”

Albers said the company plans to proceed with a rate increase as planned on February 1, 2004. While the rates for passenger cars will increase by one cent, heavy trucks will see rates jump three cents to 41.85 cents/km during peak times and 39.30 for non-peak times. Tractors without trailers face a two-cent/km increase.

Tolls have already gone up five times in the last four years, and the last increase in February last year, was almost 13 per cent.