The North-South Highway (Plus) has incurred massive losses since 1988 due to its high operating costs, said Works Minister S Samy Vellu in Parliament today.

Samy said up to Oct 31 this year, the operating cost for the highway is RM17.872 billion compared with its revenue of RM8.206 billion.

This, the minister said, is why a 10 percent hike in toll charges had to be imposed.

Samy told the House that Plus is saddled with debts amounting to RM16.5 billion.

The debts include federal government loans (RM2.448 million), commercial debts (RM1.673 million), Plus bonds (RM8.736 million), refundable and variable bonds (RM1.691 billion), serial bonds (RM712 million), second link bonds (RM1.028 million) and no interest additional government loans (RM212 million).

"As toll charges approved are lesser that the rate stated in the agreement, the government has to compensate Plus," said Samy.

Compensation

The amount of compensation the government has to pay Plus by 2030 is RM32.51 billion, he said.

However, if toll charges are not increased, the government has to pay RM80.025 instead, he added.

Samy said the price hike is still lower than toll charges in other countries in the region.

He said in Japan motorists have to pay 87 sen per km, China 19 sen, Hong Kong 82 sen, Thailand 20 sen, the Philippines 19 sen, Indonesia 14.5 sen while in Malaysia it is 12.36 sen.

"Whatever the government does in relation to this price hike, it has the rakyat at heart. It is a win-win situation for the people and the government," said Samy.

Earlier, House Speaker Mohamed Zahir Ismail allowed Mahfuz Omar's (PAS-Pokok Sena) motion to debate the toll issue on grounds that it was urgent, of a specific nature and of public interest.

All levels affected

In his motion, Mahfuz claimed that the matter was specific as the government had decided to increase the toll to benefit Plus, an Umno-controlled company.

He said the project had been bailed out by UEM, a Barisan Nasional-aligned company which was recently bailed out by the government to the tune of RM4 billion.

Mahfuz argued that the matter was of public interest as the higher price will affect all levels of society including bus and taxi commuters and lorry drivers.

The prices of commodities that are transported via the highway will also be affected, he added.

"Basically, this means that everyone will be affected and everyone will have to spend the new year with new toll charges right after the BN government presented us with a 10 sen raise in the price of petrol," said the PAS MP.

Mahfuz also said the matter was urgent as the price hike will affect consumer goods and cost of transportation especially for the coming Hari Raya, Christmas, New Year and Chinese New Year celebrations.

He said the decision for higher toll charges was "illogical" as a price review should be carried out every five years.

"The last hike in toll charges was only three years ago," Mahfuz pointed out.

UEM, Plus not Umno's

Samy refuted Mahfuz's claim that UEM and Plus are Umno-owned. He explained that Umno has released all its shares in the companies when the party was proclaimed illegal in 1987.

"Businessmen Halim Saad and Anuar Othman bought the shares in 1989. With this sale, Umno no longer has any interests in UEM or [UEM-controlled] Renong," clarified Samy.

Samy said Danasaham, the government's investment arm, which is fully-owned by Khazanah Nasional Berhad, made a voluntary general offer on UEM.

"With the purchase, the question of bail-out does not arise," he added, further saying that the deed was meant to restore investor confidence in the country and the banking system.

"One of the reasons why the investment climate has become dull is due to the inability to rearrange UEM's RM29.4 billion debt. Without resolving this, the market will continue to be weak," he added.

UEM is currently owned by Renong (38 percent), government institutions such as the Employees Provident Fund and the Pension Trust Fund (13.2 percent), local investors (32.2 percent) and foreign investors (16.5 percent).