As a regular contributor to the letters section in local newspapers, on matters of community interest and public policy, I have observed a continuing interest with the subject matter referenced by some of the letters. They are re-published here as a public service.

Following is an article first published in 1999 and re-published here to serve as a reference on the issue.

The Editor, Saint John Telegraph Journal,

Michael Tutton is right on the money with his "budget buster" article in today's TJ(August 13, 1999).

There is no instant solution to the removal of tolls on the (under construction) Moncton to Fredericton four lane highway. Any alternative to the toll-based debt and/or removal of the tolls will cost money. That means fewer dollars for healthcare, education and/or other government programs or higher taxes.

Here are some of the considerations:

1. The provincial government could pay the tolls. That would cost the Treasury about $22 million a year for thirty years (i.e. $666 million) and create either an annual deficit or a program funding-cut.

2. The provincial government could cancel its contract with MRDC. That would cost it $250 million in penalties plus the $600 million dollar construction costs.

3. The provincial government could assume the toll-based debt of $150 million at a cost of about $351 million (including payment of principle and interest at 7%) over 30 years.

4. The Provincial Government could renegotiate its highway contract with MRDC but the only winner would be MRDC. Their winning bid was approximately $70 million below cost.

If they open the contract, they'll want that $70 million back either in cash or in reduced deliverables. If MRDC is asked to finance the toll-based debt, it would probably cost the Government (at 9% interest) about $430 million over 30 years.

The bottom line is that there is no cost-free solution to the government's promise to remove tolls.

The question that must be asked is this: Are New Brunswickers really willing to accept a cut in healthcare, education or other services to fund highway tolls, just to satisfy the complaints of a few residents in Salisbury and Petticodiac and allow the Government to deliver on an ill-considered election promise?

Sincerely
W.E. (Bill) Belliveau, Shediac, NB