The NSW Government has got itself into a fearful mess over the M4 and M5 motorways. In Opposition, the now Premier, Bob Carr, promised to abolish the tolls. On obtaining power he found that the projected cost of doing it was double the original estimate of $73 million. This was because of hidden federal tax implications arising from the compensation payable to the tollway companies. The promise was therefore not honoured.
The failure to keep the promise has cost the Carr Government politically, according to opinion polls in the electorates affected in western Sydney. It is a classic exaggerated single issue _ where a significant number of voters will change their vote on that issue alone. In this instance, $750 a year was at stake for regular users of the M4 and $1250 for the M5. It was an artful bribe before the election because it was geographically targeted and effective. A counter-promise by the other side would have been seen as cynical catch-up politics.
After the election, when the promise could not be fulfilled the bitterness continued. It had to be dealt with, no matter how irresponsible and ill-thought-out the original promise and no matter the cost of the bail out.
So the NSW Government has come up with a costly and cumbersome scheme under which regular users get a card to swipe through a reader at the tollway each day when they pay their toll. At the end of the year they can claim a refund. It is restricted to non-commercial vehicles and will only be worthwhile for regulars. In short, the bail out is as artful and irresponsible as the original promise; it is targeted to regular users who also happen to be geographically concentrated group of voters, who purely co-incidentally will be voting in the Lindsay by-election in two weeks. It is enough to make anyone cynical.