FED: Drivers could 'pay per km' if Henry has his way

AAP General News (Australia)
04-30-2010
FED: Drivers could 'pay per km' if Henry has his way

By Julian Drape

CANBERRA, April 30 AAP - Motorists could one day pay for every kilometre - and face
higher fees for driving in cities and at peak times.

Each car on the road would be tracked by satellite under the proposal, outlined by
Infrastructure Partnerships Australia (IPA) on Friday.

The plan is similar to one floated by Treasury secretary Ken Henry.

It's expected to feature in Dr Henry's taxation review, to be released on Sunday.

IPA executive director Brendan Lyon insists a road pricing scheme isn't a pipe dream.

"We're hopeful that it will be discussed at some length in Dr Henry's report and that
governments don't close the door to discussing these kind of reform options," he told
AAP.

"This isn't some weird option that no one's considered before."

Under the scheme, existing road use taxes and charges would be abolished, including
registration, licensing and fuel excise.

"You replace that with a per kilometre charge which is more equitable," Mr Lyon said.

"People are paying based on the level to which they access the road network."

The average charge under the proposed scheme would be eight cents per kilometre.

Driving in the country would cost less, while motoring in cities would be more expensive.

Using a vehicle in urban areas during peak hours would be more costly again.

"This would encourage people not to drive during the morning and afternoon peaks."

The IPA's discussion paper states an eight cent per kilometre average charge would
raise an additional $4 billion annually. That would then be invested in public transport
and road projects.

The infrastructure body argues under current arrangements, trips in Sydney or Melbourne
cost between six and eleven cents per kilometre, depending on car type.

In December, Dr Henry said traffic congestion cost the economy $9 billion each year.

"In the face of those costs, why have we stuck to the traditional fuel tax and rego
model for cars for pricing access to roads, when sensible pricing seems to offer such
large benefits?" he asked.

Under the current system there's no incentive for drivers to "bargain" with one another
for priority access, the Treasury secretary said.

On Friday, Mr Lyon said a national road pricing scheme wouldn't rely on toll points
above the road.

"Instead you're looking at a system that might be based on GPS, the 3G telephone network
or something else.

"We're talking about a vehicle-based system that's able to measure the distance it's
travelled, the time of day that the journey is undertaken and the location of the vehicle."

Privacy concerns "would need to be resolved", he admitted.

Norway and Oregon in the United States have committed to introducing road pricing schemes
within the next decade.

But Mr Lyon said it was a medium to long-term project in Australia.

Even if governments committed to introducing a national scheme, "implementation would
likely take between five and 10 years due to technology challenges".

AAP jcd/sb/it

KEYWORD: HENRY CONGESTION

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