Continuing deterrent to use

Not having cash toll options appears to be a significant deterrent for motorists who might otherwise use the CCT. Some of these motorists told us that they did not use it because:

  they did not have an e-tag because they would not be regular users

  they did not know how to get a casual user pass

  they had not set up an e-tag account because they did not have a credit card.

The significant public resistance to using the tunnel is partly due to the level of the tolls. It can be argued that allowing both the escalation formula change and the FAD toll increase has heightened that resistance, and so may be a factor in reducing tunnel patronage.

Any reduction in patronage would make the likelihood of achieving the main objective, reducing surface road traffic in and around the City, less achievable.

The development, design and construction cost of the tunnel was around $680 million. The total cost of the tunnel on opening was over $1.0 billion. This is the amount paid by CCM. The two changes to the tolls were to avoid paying for two sets of cost increases, totalling $75 million and $35 million respectively. If the Government had contributed this $110 million directly, a construction cost increase of 16 per cent, rather than passed it on to the users, the tolls in 2018 could have been:

  up to one third lower for the main tunnel

  up to 44 per cent lower for the SJYC exit tunnel.

The Government has various options available to achieve the desired reductions in surface road traffic. For example, it could seek to lower the toll. It could also make the use of public transport more attractive.