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 issues.

The Editor, Moncton Times & Transcript,

I was disappointed by Don Richardson's instant solution (as provided by a "former public servant") to the removal of tolls on the (under construction) Moncton to Fredericton four lane highway.

First principle: any alternative to the existing and future tolls will cost the new government money. That means fewer dollars for healthcare, education and/or other government programs.

Here are some of the considerations:

1. The provincial government could pay the tolls. That would cost the Treasury about $22 million a year and create either a deficit or a program funding-cut in a non-highway portfolio.

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

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) over 30 years.

4. The provincial government could use the remaining $183 million from the Federal HST compensation fund, as proposed by Mr. Richardson, and invest it in a Toll Payment Investment Fund .

If the fund could earn, net of federal income taxes, as much as 5% a year, that would leave the provincial government with a net cost of approximately $49.1 million over 30 years. However, there's a catch.

The $183 million that would be used to capitalize the Toll Payment Investment Fund is already committed to the Department of Health in next year's planning budget.

To execute Mr. Richardson's plan (as provided by a "former public servant"), the government would have to cut healthcare expenditures by $183 million or create a deficit of $183 million to fund the removal of tolls. The deficit option would require a legislative reversal of existing law which prohibits deficit financing.

5. The final option for the provincial government is to renegotiate the highway contract with MRDC. The only winner in a renegotiated agreement would be MRDC.

Their winning bid was approximately $70 million below cost. If they open the contract, they'll want that $70 million back. If MRDC is asked to absorb the toll costs, that would cost the provincial government another $660 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 deliver on an ill-considered election promise?

Sincerely, W.E. (Bill) Belliveau