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Key parts of review into slashing the cost of New South Wales toll roads were kept from public, report co-author alleges

Signage of Sydney's M2 toll motorway

The former head of the ACCC was tasked with analysing toll profits. (Four Corners)

In short:

Former head of the competition watchdog Allan Fels says key parts of his report into the toll industry were suppressed by government officials.

The report was released in July, but Professor Fels says financial modelling showing the growth of toll costs was blocked by three bureaucrats.

Four Corners also found truck companies were advising drivers to avoid Sydney's toll roads because of increasing tolls.

The former head of the federal competition watchdog has accused the New South Wales government of suppressing parts of his report into the toll road industry, including toll behemoth Transurban.

Professor Allan Fels said parts of his landmark review into the state's toll road industry, which included the original financial modelling, was obstructed by senior bureaucrats in the government.

"We wanted to publish a lot more information, but we were blocked strongly by the three deputy secretaries involved and at the last minute they produced an overnight legal opinion from a firm they use," he said.

Allan Fels stands in front of a city landscape

Former ACCC head Allan Fels says key parts of his report were blocked. (Four Corners)

"The main threat was I'd be sued for billions of dollars and possibly face criminal sanctions."

Premier Chris Minns's government commissioned Professor Fels and economist David Cousins to conduct a review of Sydney's toll roads as a part of its 2023 election promise to slash prices on the network.

Their 382-page final report, released in July, called for prices on the network to be controlled by a state government agency and for two-way tolling on the Sydney Harbour Bridge.

Professor Fels said they were given access to the base-case financial models for the roads, which show revenue and profit projections, but the government's legal advice prevented them from publishing an analysis.

In a statement, the NSW Transport Department said: "It is the department's responsibility to provide the appropriate governance framework and highlight any legal risks to the state of NSW.

four men dressed in suits sit at a round table to discuss the state of the road toll network in nsw

John Graham (left) and Allan Fels (centre) in 2023 when the report was commissioned. (AAP: Dean Lewins)

"This included legal advice on the publication of commercially sensitive information.

"As this is a complex and commercially sensitive issue, it is standard process to obtain specialist legal advice."

In a separate pre-election pledge the NSW government said it would make public key parts of secret contracts with toll companies like Transurban, bringing the state into line with Victoria and Queensland.

Eighteen months later, it has yet to deliver.

NSW Roads Minister John Graham said the government would release the details soon.

"It may or may not be this year, but it certainly will be in the near future as a part of this process," he said.

Toll road giant Transurban and its investment partners own all of Sydney's toll roads except the Sydney Harbour Bridge and Tunnel.

It is currently in negotiations with the NSW government about the recommendations of the Fels-Cousins report.

John Graham in a suit

NSW Roads Minister John Graham. (Four Corners)

"We're working with the NSW government and our partners to find a solution that benefits everyone, particularly motorists," Transurban said in a statement.

"We are also giving our customers better information about travel time savings and price so that they can more easily make a choice about using our roads."

Rat-running on suburban streets

Some freight and courier companies are advising drivers to avoid toll roads in Sydney due to increasing prices.

Owner-driver Walter Koppen, who delivers building materials around the city, said he can spend up to 20 per cent of his income on tolls.

"I think most trucks try to avoid the toll roads," he said.

The trucking company Mr Koppen works for has explicitly told him to avoid using Sydney's tolls.

Walter sits on the bed of his truck

Owner-driver Walter Koppen delivers building materials around Sydney. (Four Corners)

In a separate case, Four Corners obtained a letter from courier giant Aramex sent to its Sydney drivers in August telling them not to use toll roads.

"Our top priority is to find the most direct route to deliver and ensure that the process is also cost-efficient," Aramex's Sydney general manager, Jason Bovis, said in a statement.

"Not using toll roads unless it is mandatory is in line with that."

Mr Graham said the government was aware that trucks were avoiding toll roads because of the increasing costs, leading to rat-running on suburban streets.

"The higher price of tolls is making Sydney more congested," he said.

"One of the real reasons here to reform this system to reset tolls is we can get more traffic in the tunnels, including truck traffic.

"But we can reform prices if we get a balance right then that could be good for everyone here."

Watch Four Corners' investigation, Road Gold, on ABC iview.