Highway tolls could raise $60M for cash-strapped government

The New Brunswick government isconsidering three models for potentialhighway tolls as a way of wrestling down the provincial debt.

One option being floated is to setup toll booths at eighthightraffic locations on fourlane highways.

Another would be toll booths at theentrances to the province that have four-lanes:Edmundston, Woodstock, St. Stephen and Aulac, andthefinal option is to put thebooths nearSaint John, Fredericton and Moncton.

However, Finance Minister Roger Melansonsays nothing hasbeen decided yet but a decision will be made in time for the release of the budget on Feb. 2.

"Tolls are certainly an option. No tolls is also an option. As we go forward in wanting to bring a budget that identifies half a billion dollars, 500 million dollars, we've got to consider if tolls are an option for it or not," said Melanson.

He says tolls at the borders might violate inter-provincial agreements and treaties with the United Statesthat require open trade.

In a statement released on Wednesday, Health Minister Victor Boudreau, theminister responsible for the strategic program review, said the ideaof tolls was raisedduring those consultations.

"But there was disagreement as to where they should be located," he said.

"We have looked at different models and each would have a different impact on drivers both local and visiting," Boudreau said in the statement.

Electronic toll booths bring more money

The government has said implementing electronic toll collection facilities will bring in more revenue with a lower cost than having staffedtoll booths, andMelanson says this could make for a significant revenue stream.

"Tolls potentially as an estimate could generate as much as $60 million dollars, but the level of traffic dictates what is the rate of the toll. More vehicle commutes, the less the rate can be," he said.

"Less vehicle commutes, the toll rates would be higher, because you have to get to a significant amount of money."

One option used by the governmentis based on 3 cents/kmfor cars and 12 cents/km for trucks.

This optionwould makea round-trip cost about $9 per car and $36 per truck to drive between Moncton and Saint John.

The cost of a trip between Moncton and Edmundston for a car would be about $24 and the cost for a truck would be $96."

Option 2 generates $43M

For option two,with booths atEdmundston,Woodstock, St. Stephen andAulac,the government says $43 million could be generated from a round-trip toll of $10 per car and $40 per truck.

The thirdmodel would see electronic tolls placed around Fredericton, Saint John and Moncton, but the governmentsays in its statement this model could disproportionately impact daily commuters in the province's three main urban centres.

Using average traffic volumes, a round-trip rate of $6.30 per car and $25.20 per truck would increase revenue by an estimated $60 million.

The government estimates it would cost$16 million tobuildeight electronic toll boothsthroughout the province and annualoperations and maintenance costs are estimated at $4 million.

The introduction of highway tolls is only one initiative being explored.

The government has already said it's considering an HST increase, changes tosenior management in the civil service,reducing spending on health care,reducing spending on education andincreasing corporate income tax.