Province And 407 ETR Agree To Better Deal For Drivers

[Ed007Toronto]

Province And 407 ETR Agree To Better Deal For Drivers

Highlights Of Agreement Include New Consumer Benefits And Highway
Expansion

TORONTO, March 31 /CNW/ - The Province of Ontario and 407 ETR have agreed
to a settlement agreement that is a better deal for drivers, Minister of
Transportation Harinder Takhar announced today.
"Drivers told us they wanted better customer service and more
accountability," said Takhar. "We have reached an agreement with the 407 ETR
that will improve service for consumers beginning immediately and for years to
come."

The agreement includes:

- The introduction of a $40 million customer benefit program
- Savings for heavy usage and heavy- vehicle drivers
- The addition of over 100 kilometres of new highway capacity by late
2007
- Settlement of all outstanding disputes between the 407 ETR and the
Province
- The appointment of an ombudsman to advocate on behalf of 407 ETR users
- Putting a stop to efforts by collection agents and the reporting of
unpaid debts to consumer reporting agencies while the dispute
resolution process is underway.

"We have been fighting a vigorous battle in the courts," said Attorney
General Michael Bryant. "However, with a settlement of all outstanding
litigation, we have been able to win these important benefits for 407 ETR
drivers."
"This agreement will make a difference for 407 ETR drivers," added
Takhar. "This means added protection for people that use the highway on a
regular basis. The added lanes will enable people to spend less time in their
cars and more time with their families."

Disponible en français
www.mto.gov.on.ca



Backgrounder
-------------------------------------------------------------------------

ELEMENTS OF AGREEMENT BETWEEN THE PROVINCE AND 407 ETR

Customer Benefits Program

- 407 ETR will invest over $40 million into a multi-tiered customer
benefits program for approximately 100,000 customers
- The program will translate into savings on toll rates of up to
10 -15 per cent for the most frequent users of the highway over the
next four years
- The company has agreed not to raise tolls until the benefits program
is in place, which is expected by January 1, 2007.

Better Customer Service And Increased Consumer Protection

407 ETR has agreed to improve customer service by:

- Appointing an ombudsman to deal with customer disputes and issues
- Putting a stop to efforts by collection agents and the reporting of
unpaid debts to consumer reporting agencies while the dispute
resolution process is underway
- Improving information given to customers on the dispute resolution
process to ensure they are aware of their options if they dispute a
bill.

Reduced Costs For Truck Drivers

The government wanted the agreement to recognize and support the rapidly
growing economy and reflect the importance of truck traffic through the
northern GTA. Over the next two years the 407 ETR has agreed to:

- Introduce a multi-tiered reward program for heavy-vehicle users
- Discount the first tier users by up to 50 per cent for nighttime and
weekend rates; up to 25 per cent discounts in off-peak rates; and
eliminate video toll charges
- Discount the second tier of users by up to 25 per cent for nighttime
and weekend rates; up to 10 per cent discounts in off-peak rates and;
a 70 per cent reduction in video toll charges
- Reduce video toll charges for the third tier of heavy vehicle users by
up to 70 per cent
- These discounts will be tied to compliance rates for proper use of
transponders by heavy vehicle users.

Expanded And Improved Highway

- 407 ETR will build over 100 kilometres of new lane capacity by adding
one core lane in each direction between Highways 401 and 404 by late
fall 2007, meaning less congestion for drivers. This is ten years
ahead of schedule.
- This will mean a 33 per cent increase in traffic capacity.

Consumer Protection In Plate Denials

Under legislation introduced by the previous government, 407 ETR can
request the Registrar of Motor Vehicles to deny licence plate renewal for
drivers with unpaid tolls. Today's agreement brings in the following consumer
protections:

- 407 ETR will immediately notify the Registrar of Motor Vehicles of any
plate denial errors, will fix the error and will offer compensation to
customers.
- In cases of extreme hardship among individuals who haven't paid their
bill and whose plates are in denial, 407 ETR will offer a repayment
plan.
- Independent auditors will be appointed to ensure that plates are
denied according to existing legislation and regulation.
- The parties have agreed to a number of enhanced procedures in order to
streamline operations between 407 ETR and the Province.

Disponible en français

www.mto.gov.on.ca



Backgrounder
-------------------------------------------------------------------------

GOVERNMENT FIGHTS TO BETTER PROTECT 407 ETR DRIVERS

In May 1999, the previous Ontario government sold Highway 407 to 407
International Inc. for $3.1 billion. The resulting lease on the highway
carries a 99-year term - lasting until the year 2098.
With 92 years left on the lease, the Ontario government has been fighting
hard on its commitment to better protect the public interest under the
contract. To do that we have aggressively pursued a number of legal
proceedings over that last three years:

- The Province challenged toll increases by 407 ETR because 407 ETR had
not obtained government approval
- The Province was pursuing arbitrations related to how toll rates are
calculated
- The Province fought the 407 ETR's attempt to compel the Registrar of
Motor Vehicles to deny licence plates to individuals who 407 ETR
claimed had unpaid tolls
- The Province challenged the amount of money owed to it by 407 ETR
under the contract
- The Province and 407 ETR were engaged in a number of other legal
proceedings to resolve issues related to the interpretation of the
contract in the public interest.

Under a settlement agreement between the Province and 407 ETR, all
outstanding legal issues have been resolved. The settlement achieves several
important consumer protections related to the 407 ETR.

 

[Mike in TO]

In May 1999, the previous Ontario government sold Highway 407 to 407 International Inc. for $3.1 billion. The resulting lease on the highway carries a 99-year term - lasting until the year 2098.

This just pisses me off. The 407 should have remained a public controled assest. Rather than selling it off to get the provincial finances in the black one year the ongoing annual income would have more than paid off the highway in way way less than 99 years. The income from the highway once it was paid off could have gone to other priorities be it expansion of the 407, expanstion of transit, health, education etc - instead it all goes to profits for the spanish consortium which seems to be fighting constantly with the provincial government.

 

[spmarshall]

Exactly. If the province owned it, it could also give free access to GO, YRT, BT and MT buses (the agencies that do or could potentially use the highway). I guess GO will get a bit of a break on its tolls, but that's the only good thing out of this.

This is also one reason why I think the LCBO should remain public - its a great cash cow, while still passing along good prices to consumers - and why there's a problem with many P3 projects.

 

[Suicidal Gingerbread Man]

The freakin most expensive toll highway in the world, where the government cannot even control the tolls because the previous conservative government made fare control against the law.

Screw you, Harris.

 

[rbtaylor]

Exactly. If the province owned it, it could also give free access to GO, YRT, BT and MT buses (the agencies that do or could potentially use the highway). I guess GO will get a bit of a break on its tolls, but that's the only good thing out of this.

The flip side is that if the government owned it the fees would probably be significantly lower and the highway would be heavily used. GO may have free access but they might not be moving very quickly due to congestion.

 

[Suicidal Gingerbread Man]

The flip side is that if the government owned it the fees would probably be significantly lower and the highway would be heavily used.

In other words, like most highways in other big cities. :rolleyes

 

[bizorky]

This just pisses me off. The 407 should have remained a public controled assest. Rather than selling it off to get the provincial finances in the black one year the ongoing annual income would have more than paid off the highway in way way less than 99 years.

Exactly! And made a profit for the government over the long run. This is a clear example for those who preach the gospel of privatize everything because it will always result in savings, as if it all were a natural truth.

 

[AlvinofDiaspar]

bizorky:

I don't think it's a matter of privatization - certainly, the Tories never got around doing it for the LCBO over their years. They sold the 407 just to make some quick bucks to balance the books.

AoD

 

[bizorky]

Not an issue of privatization??

If this asset was publically held, I doubt the long-running issues of rapidly increasing charges, false transponder bills, and so on, would have been so difficult to resolve. The problem is that the private owners do not have to answer to the public. Ministers who control departments that manage public assets get called onto the carpet at Queen's park. Private companies don't.

 

[AlvinofDiaspar]

bizorky:

What I meant is, the rationale for selling the 407 at the time isn't the ideological need for privatization, but the need to puff up the budget to make it look good.

You wouldn't get any arguments from me re: the pitfalls.

AoD

 

[bizorky]

Alvin,

I understand what you mean now. Nevertheless, the one year pump-up was hardly worth it considering the potential long term value of this project.