Highway privatization comes with a high price (and higher and higher)

Independent truckers testify before congressional panel

(Washington DC, May 24, 2007) – Privatization of public assets is a lot like taking Aunt Sophie's china set to a pawnshop. You get a little quick cash for the short term, not getting nearly what the items are worth, and then you still need something to eat on next Thanksgiving when the price goes up for dishes. This was just one of the sentiments shared Thursday by the Owner-Operator Independent Drivers Association (OOIDA) on the issue of highway privatization. OOIDA Executive Vice President Todd Spencer testified during a hearing before the U.S. House Transportation and Infrastructure Committee's Subcommittee on Highways and Transit.

Spencer pointed out that when highways are privately owned, those private companies are able to raise toll rates year after year. It is the Association's position that the motoring public has already paid taxes and user fees to build those roads. Subsequent toll raises may force highway users on to alternate routes on local roads, resulting in congestion and safety hazards, along with additional costs to purchase those roads.

“Our interstates and highways were built to provide citizens the ability to move about freely and to distribute freight efficiently,” said Spencer. “Not to become cash cows for solving funding problems.”

Spencer cited an example from Indiana, whose taxpayers will likely end up paying a high price for a decision made by their governor.

“Gov. Mitch Daniels signed over control of the Indiana Toll Road and its toll rates for the next 75 years, leaving governors who are yet to be born without any say whatsoever over that road,” Spencer said.

No compete clauses in that lease agreement require the public to purchase the rights to significantly improve or add capacity to those adjacent roadways from the leasing entity.

“Ultimately, the citizens of northern Indiana will be left to pick up the tab and deal with the consequences,” Spencer added. He qualified his remarks by saying the Association does not oppose all instances of privatization.

“There is no doubt leasing our nation's highways will leave an enduring legacy on our country,” he said. “Unfortunately, we have difficulty envisioning it to be a positive one.”