Government toll subsidies in Japan generate congestion, backlash (ADDITION/CORRECTION)

Japan's Democratic Party government is in a heap of trouble over its election pledge a year ago to end tolls on the country's expressway network. Since coming to power in September last year the Democrats have managed to turn what started out as a successful political pandering into a worsening political disaster.

Between the election and the new party coming to power the ministry of land infrastructure and transport released a report saying the abolition of tolls would increase long-distance (>200km) traffic on the expressways by 57%, reduce train travel 11% and increase CO2 emissions 33%. Also the country's six tollroad companies would be entitled to vast sums in compensation - Y1.3t/year, $14.7b/year (Y88.56=$1).

The new Hatoyama administration's transport minister (equivalent to a US secretary of transportation) Seiji Maehara indicated he was uneasy with the detoll policy from the beginning, and has attempted to do the minimum needed to fend off accusations that the government is completely welshing on its election promise.

Prime Minister Hatoyama turned out to be a bumbling, ineffectual leader, eclipsed in power by party secretary-general Ichiro Ozawa.

In April his transport minister Maehara announced a complex series of changes to toll rates. This included a toll cap of Y2,000, $22.60 for cars and prorated caps for larger vehicles, detolling a bunch of little traveled rural tollroads and distance-based tolls for some busier expressways with flat rate tolls at present. The last would increase many tolls.

The cost in government subsidies was put at Y250b/yr, $2.8b. Ozawa proposed offsetting this by cutting back heavily on new expressway construction.

That set off vigorous argument.

Also prime minister Hatoyama had a major fuss over relocating a US military base. Earlier this month he resigned - after just nine months in office - and Japan has a new prime minister, Naoto Kan.

Kan has long campaigned for detolling. (CORRECTION 2010-07-06)

Pilot program of detolling

Meanwhile a "pilot program" to detoll some 50 segments of 37 rural expressways went into effect this week. The program covers 1,652km or 20% of the network by length.

There were immediate reports of major backups on a number of previously little traveled roads.

Congestion

Today the Ministry reports there was a 79% increase in traffic with no tolls this Monday compared to last week's Monday with tolls.

The Ministry said four segments of road experienced backups of greater than 1km (5/8 mile).

How much of this dramatic increase in traffic is a one-off response to the publicity, and how much is a lasting response to the lower cost of travel is unclear.

Transport minister Maehara says that government policy is now to maintain tolls wherever removing them would create "traffic jams" (congestion).

Commentators as well as the opposition have been highly critical calling Democrat Party policy on tolls "incoherent."

ADDITION: veteran follower of the toll business in Japan, Kodo Ogata was in touch with us and helped us with the correction about the stance of the new prime minister Kan.

Ogata, a supporters of tolls debated with Kan, when he was a younger politician in 2003. Unfortunately he did not turn him around!

see the picture below left

TOLLROADSnews 2010-06-29