The Government, National Toll Roads (NTR) and Fingal County Council are to share €1.5 billion in revenue from the West-Link bridge on the M50 over the next 15 years, according to a new economic study, writes Liam Reid, Political Reporter.
The report by DKM Consultants estimates that between 2005 and 2020 the State and its agencies will get €936 million in revenue from the toll bridge - a figure that includes taxes and rates.
NTR will receive €616 million, net of taxes.
The study - commissioned by NTR in the wake of negative publicity about the toll bridge and a campaign mounted by Independent senator Shane Ross to have the tolls scrapped - shows the company has already earned accumulated profits of €80 million from the bridge since it opened in 1990.
It indicates that the full cost of removing tolls on the bridge would be more than €1.4 billion when forgone taxes and the State's share in tolls are included.
It also states that the Government would have to pay NTR €500 million to buy out the company's interest in the bridge, which will continue to 2020, when it reverts back to the State.
Minister for Transport Martin Cullen has already indicated that buying out NTR is not an option. The Government plans to use future toll revenues to finance the €800 million upgrade of the M50 which is to begin later this year.
Discussions are continuing between NTR and the National Roads Authority about introducing electronic tolling that would not require cars to stop, but this will need new legislation.
The study acknowledges the price of the toll has nearly doubled, to €1.80 since 2000, and that NTR's concession on the bridge has been "highly profitable".
However, it claims that NTR took a significant risk when it decided to finance the project in 1987, while the State took none and will take the majority of the revenue in the future.
The toll price rises were mainly due to one-off cost additions like VAT, the report states. It claims the Government and State agencies will be the main beneficiaries of the toll charges over the next 15 years and will get 65 per cent of all toll revenues, or €936 million.
Since the bridge opened in 1990, it has generated €412 million in gross toll revenues, €239 million of which has gone to NTR. The remaining €173 million went to various State bodies, including €83 million directly to the Government as part of its share of the toll revenues.
Of the €71.5 million in tolls that will be collected this year, €32.5 million will go directly to NTR.
Some €5.1 million will go to Fingal County Council in rates, €15.2 million to the Revenue Commissioners in VAT and corporation tax from NTR profits, and the remaining €18.8 million directly to the Government from its share in the toll.
Under the agreement, the Government receives a certain percentage of each toll, depending on the volume of cars passing through the gates in a day, ranging from 0 per cent for the first 27,000 cars, 30 per cent for the next 8,000 cars, rising to 80 per cent of each toll if car numbers rise above 92,000.