The proposed acquisition of the Eastern freeway toll road by Transurban has raised serious concerns which are now the subject of a formal enquiry by the ACCC. TfM, T4e and VTAG have welcomed this enquiry and responded by making formal submissions three of which are attached.
The ACCC’s concerns relate essentially to potentially anti-competitive outcomes, confining its inquiry to four key questions as follows:
- “The ACCC is concerned that the proposed acquisition may substantially lessen competition for concessions to construct, own and/or operate toll roads in Victoria.”
- “The ACCC is considering whether Transurban has incumbency advantages from holding toll road concessions, and the extent to which the proposed acquisition could increase those incumbency advantages…..”
- “The ACCC is also concerned that the proposed acquisition may prevent the emergence of a key rival to Transurban for future toll road concessions…..”
- “The ACCC is also considering the extent to which the Victorian Government can constrain Transurban in future toll road concession sale processes.”
However the implications are much broader and raise issues of governance and proper process. These are discussed in VTAG and T4e submissions attached.
As noted in the first VTAG submission it also raises serious questions about the tolling model itself and the extent to which the proposed acquisition would perpetuate current concerns.
“At a Transport Technology World Congress at the World Trade Centre in 2016, Singaporean Managers hearing Transurban present at a Congress, examined the data presented on toll revenues v. expenditure. They were stunned that Victoria allowed this model, astounded that toll revenue was not going into State revenues to fund hospitals, schools, railways and housing and other needed infrastructure – as they would in Singapore. They were adamant Victoria was being short-changed and that their Land Transport Authority (LTA) and political leadership would not countenance such a private sector funding model in Singapore to public detriment! They could not comprehend a State leadership so lacking in financial acumen and consideration of the public interest!”
These issues should be understood by the Victorian community and have implications for all Victorians.
VTAG submissions to ACCC toll road inquiry
T4e Submission_ACCC Transurban Inquiry July 2023_FINAL 18.07.23