Ernst & Young advised the RTA that the 15 cents base toll increase was an appropriate amount to offset the $35 million worth of works that CCM carried out. Independent financial analysis provided to us supports this. The Ernst & Young report notes that over the life of the project the 15 cents change equates to an increase of 5.6 per cent in toll revenues.
The $35 million is small in terms of the overall cost of the CCT project. In our view, however, the resulting 15 cents increase in the base toll impacted on the affordability and hence public acceptance of the tunnel, and was not applied equitably. These adverse effects were not explored fully. See Exhibit 3.4.
Exhibit 3.4: The 15 cents increase to the base toll | |||
| Original base toll | After 15 cents added | Change (per cent) |
Main tunnel - cars | $2.50 | $2.65 | 6.0% |
Sir John Young Crescent exit - cars | $1.10 | $1.25 | 13.6% |
Main tunnel - heavy vehicles | $5.00 | $5.30 | 6.0% |
Sir John Young Crescent exit - heavy vehicles | $2.20 | $2.50 | 13.6% |
Source: analysis by the Audit Office. All amounts in 1999 base terms. | |||
Two things need to be noted about the 15 cents increase.
First, the base toll for heavy vehicles went up by 30 cents.