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Samy Vellu cannot  disclaim responsibility for the burdensome NSE toll rates as he  is not a postman for the Cabinet but the Minister in charge of highways as well as the person who negotiated and  signed the lop-sided NSE concession in 1988  which provided a “cash cow” to PLUS at the expense of the motorists

 


Media Statement
by Lim Kit Siang

(Ipoh, Thursday): It is most regrettable that the Works Minister, Datuk Seri S. Samy Vellu did not tell the waiting Malaysian press and public the outcome of yesterday’s Cabinet meeting after declaring in Parliament on Tuesday that he would be bringing to the Cabinet’s attention  the unanimous objection of MPs across-the-board to the the  10% rise in the toll charges on the North-South Expressway  (NSE) which is to come into effect from 1.1.2005.

This is most  irresponsible, as Samy Vellu cannot disclaim responsibility for the burdensome and oppressive NSE toll rates as he is not a postman for the Cabinet but the Minister in charge of highways as well as the person who negotiated and signed the lop-sided NSE concession in 1988 which provided a “cash cow” to PLUS Expressway at the expense of the motorists. 

Samy Vellu’s irresponsibility and failure to be frank and truthful about yesterday’s Cabinet meeting on the 10% NSE toll hike issue has given rise to different and even conflicting media reports, such as: 

  • The headline “NSE hike fait accompli  -  Cabinet: Government bears legal contractual responsibility” (Sin Chew Daily). Quoting unnamed sources, it reported that the Cabinet decided to endorse the NSE toll hike because of the legal obligations arising from the NSE concession.
  • The headline “Cabinet studies NSE toll – MPs, ruling and opposition, oppose 10% toll hike” (Nanyang Siang Pau. It reported from unnamed sources that the Cabinet had directed the Economic Planning Unit in the Prime Minister’s Department and the Public Works Department to submit  an in-depth and comprehensive report to the Cabinet on  the adverse impact of the  NSE toll hike on the national economy and people.
  • Utusan Malaysia report, also from unnamed source, that the Cabinet deferred decision after discussing the 10% NSE toll hike issue as the Prime Minister, Datuk Seri Abdullah Ahmad Badawi was not at  the meeting  - away on an official visit to the United Arab Emirates.

 

 If Malaysia genuinely practises parliamentary democracy based on the fundamental principle of the supremacy of Parliament, then the Cabinet and the Executive should yield to the unanimous view of  Members of Parliament from the Barisan Nasional and the Opposition opposing the 10% NSE toll hike next year. 

The NSE should not be a “cash cow” for PLUS at the expense of the motorists, as PLUS is forecast to make more than RM700 million in profit this year.  In the first six months of the year, PLUS Expressway posted a pre-tax profit of RM358.4 million, up by 2.3 per cent from RM350.27 million registered in the same period in 2003. 

Traffic volume for the first six months of 2004 grew 4.7 per cent as compared to 4.4 per cent for the first six months of 2003 despite the closure of the Bukit Lanjang stretch in the first five months of 2004 due to the rockfall incident in November. The company is expecting a better second half-year with the re-opening of Bukit Lanjan stretch as well as from the anticipated higher traffic for the second half of the year, as borne out by past records. 

There are two weeks left before the 10% NSE toll hike is to come into force on January 1, 2005.  The 10% NSE toll hike should be cancelled unless Samy Vellu or the NSE concessionaire  PLUS can convince MPs across-the-board that the increase is  fair, reasonable and acceptable. 

Samy Vellu and PLUS must convince not only Cabinet Ministers but all MPs, both Barisan Nasional and Opposition, on the legitimacy of the 10% NSE toll hike.  They  should hold an urgent briefing next week for all concerned MPs about the 10% toll hike proposal to lay out  the socio-economic and financial justifications for the latest toll  increase, failing which, the 10% NSE toll hike from 1.1.2005 should be cancelled.

(16/12/2004)


* Lim Kit Siang, Parliamentary Opposition Leader, MP for Ipoh Timur & DAP Central Policy and Strategic Planning Commission Chairman