Dr M: Why cut subsidies and then reduce toll rates - The Star

By Christina Koh

TELUK INTAN: There is no point in reducing toll rates when the Government has already cut fuel subsidies, said Tun Dr Mahathir Mohamad.

Responding to reports that toll rates would likely be reviewed to lighten the burden of people, the former prime minister said it would be a case of money moving from “the left pocket to your right pocket”.

“What use is cutting fuel subsidies and yet increasing subsidies for tolls and other expenses?” he told a public forum entitled The Future of Malays in Malaysia yesterday.

Dr Mahathir said that the Government had to pay compensation to the concessionaires, adding that a thorough study should be done to determine if the move was truly viable.

On the fuel price increase, Dr Mahathir said the move was inevitable, noting that crude oil had increased to US$138 (RM441) per barrel from US$30 (RM96) when he first took over as prime minister.

Dr Mahathir said that while the fuel price increase could not be avoided, it should have been done gradually to lessened its effects on the people and give them time to make adjustments.

[More at http://thestar.com.my/news/story.asp?file=/2008/6/15/nation/21559560&sec=nation]