RTA's e-tag petrol payments move slammed by motorists
- 15 June, 2009 11:30
- Comments 9
The New South Wales Roads and Traffic Authority (RTA) is set to overhaul its tolling business by allowing motorists to purchase petrol using their personal e-tags, but this has already received criticism because of the millions of dollars it could potentially add to the organisation’s coffers.
Russell Howarth, owner of Sydney-based fleet Eco Taxi has slammed the idea, saying the move could have severe ramifications for business with a fleet of cars.
"You have to pre-pay no matter what. So if a fleet has 10 cars, they would need to have $1000 minimum available per day for petrol, so therefore at the start of each week there will need to be $10,000 available on the e-tag," Howarth said.
"If the e-tag system was one where they could check if your credit card was valid at the time, and then debit your card at the time, it would be a great idea. But why should the RTA get millions of dollars every day in advance?"
Media reports which surfaced this morning say the RTA is already in talks with industry-giant Caltex on how to implement the payment system.
It is believe a hand-held scanner will be used for motorists to fill their tanks, based on systems currently operating in Singapore and Hong Kong.
A spokesperson for the RTA told News Limited that: "The RTA is investigating opportunities to extend its E-Toll customer base and increase product options and value for existing customers."
But the pre-paid toll account model, whereby money is automatically deposited into your e-tag account from your bank account or credit card, has come under fire. Automatic payments are made when the e-tag account balance reaches the top up threshold, meaning the RTA could be sitting on a goldmine.
Sources say the organisation could double its current $170 million annual revenue.
“There is no way in the world I would pre-pay for petrol. I never know how much it costs to fill-up my tank at any one time, the RTA would probably need to debit $600 out of my account per week to cover it,” a Sydney Hills District motorist told Computerworld.
“Their scanners are very unreliable in the Lane Cove Tunnel, and I get billed at least once a month for driving through it. I don’t trust the system when it comes to filling up my tank.”
Eco Taxi's Howarth says there are a lot of issues with the e-tag system which could increase the amount of licence and registration cancellations.
"If you have an e-tag, there are a number of occasions where the e-tag doesn’t work and they then charge you an admin fee for sending a bill. Let’s say I’ve got $500 credit on my account, and these admin fees all accrue, and they send out the bill to the wrong address or it doesn’t get delivered – they could potentially cancel all the registrations in the fleet. It happened to two major hire car companies last year," Howarth said.
"If there were some safeguards that protected the uni-lateral power of the RTA in conjunction with the computerised system, then I think it would be a great idea. But at the moment it’s not as easy as you think."
New South Wales Taxi Council spokeswoman Tracey Cain says the decision to pay for petrol using an e-tag will come down to individual taxi drivers.
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Comments
skythra
Why complain?
If its not mandatory and you disagree with it, just don't use the available service?
Personally I could consider the 10mins potentially saved by not lining up at a busy counter waiting to pay for petrol as increased revenue through improved efficiency.
But slam it if it makes you feel happier. Not like that extra week's interest on your $1000 is going to personally effect you significantly. Hell you may as well go and slam Mobile Phone Providers for charging you a month in advance for your phone plan. You havn't used it, but they already have your money. Do you still use a mobile? Probably.
Just saying.
Richard Ure
Why not credit cards?
This is the craziest idea known. Being the dull government department it is, the RTA refuses to take a credit risk on its customers and this seems to be what customers don’t like most about this proposal. Meanwhile, credit card companies are in the business of taking a credit risk on their customers and have been doing it successfully for years. Accepting credit cards rather than the tags suits the convenience of international tourists.
Pumps at Mobil service stations have had credit card facilities built into their pumps for years saving customers the trip to the shop; most people have credit cards, so why not use those facilities rather than create a need for e-tag scanners at each pump?
The ABC reports that the measure is not popular with service station owners either because by that means they miss out on impulse purchases in their high priced shops. The people left out of this debate are customers who, presumably, would prefer the option of the convenience of paying at the pump. But where do their needs fit into this discussion?
rure01@gmail.com
Why not credit cards?
This is the craziest idea known. Being the dull government department it is, the RTA refuses to take a credit risk on its customers and this seems to be what customers don’t like most about this proposal. Meanwhile, credit card companies are in the business of taking a credit risk on their customers and have been doing it successfully for years. Accepting credit cards rather than the tags suits the convenience of international tourists.
Pumps at Mobil service stations have had credit card facilities built into their pumps for years saving customers the trip to the shop; most people have credit cards, so why not use those facilities rather than create a need for e-tag scanners at each pump?
The ABC reports that the measure is not popular with service station owners either because by that means they miss out on impulse purchases in their high priced shops. The people left out of this debate are customers who, presumably, would prefer the option of the convenience of paying at the pump. But where do their needs fit into this discussion?
Occasional User
Pay if you do; pay if you don't?
Is it true that your eTag gets deducted if you DONT use a toll road at least once every 6 months? I heard there was an accounting fee ... so if you're not using toll roads in NSW for a while, you get "FINED" ??
phantom1235
There are tags which dont have a standing charge. Try www.breeze.com.au
Occasional User
Account History
Surprising that no-one's also complained that your account history "disappears" online after 3 months. It's a shocking system: auto-deducted in advance, so that you're "double" in debt without pre-warning and high chance of overdraft if your bank balance gets low; poor online account tracking; quick delete of your past record (if you don't save it every month, you lose copy of your record, and got nothing to show for what you've paid/been deducted); to claim the M5 etc rebate, you have to fill in a PIECE of PAPER, and pay 50cents to snail mail it (no online electronic transactions); and then, if you're really lucky, some else's number plate will be read as yours, and you'll have to fight to get your money back ... Whoever dreamed up this system, read the fine print in their copy of Catch 22 very thoroughly!
Anonymous
no downside
No need to worry about the effects of this. It will never happen.
Remember this is the NSW government which wasted some $80 million on developing their universal T-card - then canned it because their own departments could not agree on acceptable and achievable parameters.
Anonymous
Fijancial institution!
So? The BIG BANKS can extract money from us with frivolous fees etc, why shouldn't the RTA do the same. After all what smells like a financial institution, acts like a financial institution etc. must BE a financial institution.
Of course they are 'the GOVERNMENT and here to help us', so don't have ot abide by any special rules. Since thet don't actually work on CREDIT they can't be construed to be a credit provider, so they dont even have to think about any of those rules.
What can we do? Use another provider?
I say it's BRILIANT, if a litte fiendish!
Anonymous
What about paying at the bowser like Mobil??
As a motorbike rider I find that going to fill up is a real event. You've got to take all your gear off etc just to step inside the building. Some Mobil servos have a facility where you swipe or card (eftpos or CC) at the bowser before you fill up. To me thats a great option, you just pull up, swipe, fill, ride off. Those servos aren't easy to find. My thoughts are they the servo operators don't want to implement it because they don't want to lose their upselling instore rubbish. It's a PITA lining up behind all these people buying pre paid phone credit and ordering coffees etc, I just want to pay and get the hell out.
Don't even start me on the etag system on motorbikes, it simply doesn't work - bikes are catered for at all.
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