Battle over toll road fees goes to the Supreme Court

CELTIC ROADS GROUP (CRG) is taking a Supreme Court challenge against a Commercial Court ruling that forced it to reduce tolls on the M1.

This followed a ruling that it was effectively overcharging motorists because it had incorrectly interpreted the application of the Consumer Price Index (CPI) when calculating toll rates.

The National Roads Authority challenged CRG’s toll rates in the High Court, arguing the toll firm could be overcharging motorists by up to €26,000 a week.

It argued that because the CPI dropped in 2009, for the first time in 50 years, toll fees should have declined on the M1.

Because the fees were not reduced, the authority argued CRG was in breach of bylaws in the toll charges for 2011 on the M1 motorway.

CRG told the Commercial Court it had a legitimate expectation, based on statements by the roads authority and former minister for transport Noel Dempsey, that tolls would only rise. CRG was granted a 30-year concession to operate the M1 in 2004.

Mr Justice Peter Kelly ruled in favour of the NRA and M1 tolls immediately dropped by 10 cent to €1.80.

However, according to documents from the roads authority, the toll operator has decided to appeal the judgment to the Supreme Court. No date for the appeal has been set.

A company spokesman said he could not comment on the grounds for the appeal.

He said the issues were very complex and the company deeply regretted so much confusion had been caused to the public.

The spokesman also declined to comment on whether the company was refunding customers who had been overcharged or whether this process had been suspended pending the outcome of the appeal.

Immediately after the Commercial Court ruling, CRH said it would look at ways of reimbursing users who have toll tag accounts.

The operators of the M8 toll at Fermoy, the N4 toll at Enfield and the N25 Waterford City bypass, have complied with the ruling and reduced their tolls as the contract they hold with the roads authority is similar to the CRG agreement.

Separately, the NRA has decided not to change the system it uses to collect the operating costs of the eFlow tolling system on the M50.

In 2009 the toll revenue from the M50 was €96.5 million, of which €26 million was required in costs.

According to the authority any reduction in costs would lead to a reduction in the allowable methods of payment, requiring users to either have a tag or be registered.

It said the loss of revenue “would be greater than the cost reduction” were such a change introduced.

The NRA added the change would see enforcement costs rise and “tens of thousands of occasional users of the M50 would be forced to use alternative routes”.