A citizens' coalition has published a leaflet to explain why it is against the increase in toll charges, imposed on motorists using five highways from Jan 1.

The coalition of opposition parties, non-government organisations, unions and several civil society movements calls itself Protes.

Copies were distributed at an anti-toll hike protest yesterday, which thousands attended. The '18 Questions About Toll Rates Hike' covers the following (edited version):

Why has the government raised the toll rates by between 20 and 60 percent?

Works Minister S Samy Vellu said the agreement between the government and concessionaires allowed for toll rates to be raised according to an agreed timetable. However, if a consensus cannot be reached on the quantum of the increase, the government has to pay compensation to the concessionaire. According to him, the amount of compensation paid so far is RM2 billion. In this way the government provides a RM2 billion subsidy so that the people don't have to pay the increased rates.

If this is the case, who is actually running the country?

Based on the statements by the minister, deputy minister and government, the concessionaires representing capitalists and cronies seem to be more powerful than the government.

Isn't the agreement biased?

Yes, the agreements have been made in a very opaque and secretive manner. The interests of the concessionaires are well protected whereas the people's rights have been consistently ignored.

At which stage in the forging of the agreements was the quantum of the toll increases decided?

Apparently the quantum was agreed upon when the agreements were first signed, for instance, for the LDP.

Why did the government agree so readily to these rate increases?

This is very puzzling. For example, in 1998 the rate for the LDP was fixed at RM1.50, yet the rate levied was only RM1. This means that for eight years, from 1998-2006, the government has been paying the extra 50 sen.

In the case of the LDP, why didn't the government negotiate to fix the rate at RM1 from the outset?

This is a good question. It is as if the government was only too ready to channel the people's money straight into the bank accounts of the concessionaires.

Why was the government so keen to protect the concessionaires - are they in serious financial difficulty?

The 2006 Annual Report of Litrak (LDP concessionaire) recorded a RM80 million net profit. This was a 40 percent increase over RM56 million in net profit in 2005. The report showed that Litrak achieved a new toll-collection record amounting to RM243 million for the year ending March 31, 2006, compared to RM227 million for the preceding year.

How was this profit achieved?

The LDP was built to cater for one million vehicles a year, but the number of vehicles using it has risen to almost three million. The LDP runs through a busy commercial corridor in the Klang Valley. One only has to observe the queues at the toll plaza during peak hours.

What else don't people know about the toll rate increase?

Although the new LDP toll rate is RM1.60 effective January, the rate agreed upon in the agreement is RM2.10. This means that the government is paying 50 sen compensation until 2015. Drivers now have to pay 60 sen more while the government continues to pay 50 sen, funded by the people's money. It's easy to see why the concessionaire is making a profit.

If the government continues paying compensation to the concessionaires, is it true that in the end the amount of compensation paid out will be more than the cost of building the highway?

Yes! Samy Vellu has stated that the construction cost of the highways, excluding the Guthrie highway, was RM4.13 billion. The amount of compensation paid out so far is RM4.86 billion. This means that the government could have built the highways without resorting to privatisation.

Can the government construct highways without privatising them?

Yes, two examples are the Penang Bridge and the earliest phrase of the KL-Seremban Expressway. In the rush to implement the privatisation policy, the government agency responsible for these projects was transformed into the Malaysian Highway Board and its function was reduced to monitoring projects awarded to concessionaires.

When the government raised petrol prices, it said the reason was to save RM4.4 billion in subsidies. Now it say the increase in toll charges is to save RM2.2 billion. Will the people benefit at all from this?

No. The Deputy Minister in the Prime Minister's Department, Abdul Rahman Suliman, told Parliament on Dec 13 last year that the government is spending as much as RM11 billion to take over (read: bail out) seven companies which have experienced management and financial problems since being privatised. These inclue Star LRT, Putra LRT and MAS.

If that is the case, what is the current state of the national economy?

It is in a mess! The increase in petrol prices on Feb 28 last year was the highest in 20 years - the rate for quit rent and land tax were both raised, while school bus fares also went up. Last June, the electricity tariff was increased, while the water tariff was raised in Kuala Lumpour, Putrajaya, Selangor and Perak by as much as 15 percent. The inflation rate for March last year was 4.8 percent, the highest in six years.