XN000022-1995-03-21 — Page 6

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Tate's Caim Tunnel tolls up

The Governor-in-Council today (Tuesday) advised that tolls at the Tate's Cairn Tunnel should be increased with effect from May 1.

The new toll structure will be as follows:

Vehicles

Existing Toll

New Toll

Private cars, taxis & motorcycles

$4

$6

Light buses & light goods vehicles

$7

$10

Medium goods vehicles, heavy

goods vehicles & buses

$8

$15

Extra axle

$5

$5 (unchanged)

A Government spokesman said this was the first toll increase for the company since the tunnel was opened to traffic in June 1991.

"The toll revision is necessary to allow the company to repay bank loans and to keep them on target to secure a reasonable return on their investment over the 30-year life of the franchise," he said.

The spokesman added that from a transport management viewpoint, the toll increase would not result in a major traffic diversion from the Tate's Cairn Tunnel to other alternate routes such as the Lion Rock Tunnel.

"The new private car tolls would be the same as that charged at the Lion Rock Tunnel, that is, $6," he said.

The spokesman added that since tunnel tolls accounted for only a small proportion of total household expenditure, the inflationary impact would be insignificant.

End/Tuesday, March 21, 1995