Transurban, toll road firm, made illegal campaign contributions to U.S. politicians

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ELECTION LAW
Toll Road Firm Made Illegal Contributions
Transurban Gave $172,000 To 90 Campaigns in 3 Years

Transurban gave money to Gov. Timothy M. Kaine (D), foreground, and House Speaker William J. Howell (R). Both have pledged to return it.

Transurban gave money to Gov. Timothy M. Kaine (D), foreground, and House Speaker William J. Howell (R). Both have pledged to return it. (By Steve Helber — Associated Press)

Washington Post Staff Writer
Thursday, July 3, 2008; Page B05

RICHMOND, July 2 — A company involved in building the express toll lanes on the Capital Beltway violated federal election law when it contributed $172,000 to 90 campaigns in Virginia over the past three years, company officials said Wednesday.

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Officials at Transurban, a U.S. subsidiary of an Australian company, said they should not have made the donations, because federal law forbids contributions from foreign companies and foreign nationals.

“We made an honest mistake,” said Michael Kulper, Transurban executive vice president. “We are genuinely concerned and upset about it.”

The company sent letters Wednesday to every candidate and political action committee it has contributed to in Virginia, asking for the money to be returned. Many did not know about the problem when they were contacted late Wednesday.

Recipients were Democrats and Republicans, including Gov. Timothy M. Kaine (D), dozens of state senators and delegates, the three candidates for governor next year and Fairfax County Board of Supervisors Chairman Gerald E. Connolly (D), who is running for Congress.

“I was not aware of it,” Del. Phillip A. Hamilton (R-Newport News) said. Hamilton said that a member of his staff monitors his campaign contributions and that he does not track them himself. But he added that if the company asks for its $1,500 contribution back, he will send it.

Charlie Kelly, director of Kaine’s political action committee, Moving Virginia Forward, said any out-of-compliance contributions will be returned immediately. Kaine and Moving Virginia Forward received $9,500. “It was our belief that Transurban USA’s contributions were made in compliance with state and federal law at the time they were made. We received contributions from a U.S. company through U.S. representatives. As such, we had no reason to question the contributions,” Kelly said. “We were disappointed to learn of this issue . . . but we appreciate Transurban’s admission that no one receiving these contributions could have been aware of their noncompliance.”

Transurban has invested $500 million in two projects in Virginia: helping build and maintain high-occupancy toll lanes on the Beltway and maintaining the Richmond-area Pocahontas Parkway toll road. It expects to finalize a third project to create toll lanes on interstates 95 and 395 between the 14th Street bridge and Stafford County. Transurban is working with a second company, Fluor Enterprises, on the Beltway, 95 and 395 projects.

The projects were negotiated through the Virginia Department of Transportation and Commonwealth Transportation Board. But the company has lobbied legislators on a number of bills in recent years.

Company officials were in Richmond on Wednesday to apologize to Secretary of Transportation Pierce R. Homer. “We’ve taken the matter under review and consideration,” Homer said after the meeting.

The General Assembly will return to Richmond on Wednesday to continue a special session on transportation. Many legislators, primarily House Republicans, want to encourage more public-private partnerships, such as the Beltway project, in which companies pay for projects on roads and bridges in return for the right to collect tolls.

“We certainly hope this doesn’t negatively impact on the process,” said G. Paul Nardo, chief of staff to House Speaker William J. Howell (R-Stafford).

Howell’s political action committee, Dominion Leadership Trust, received $12,500, the most of any group or individual, according to the Virginia Public Access Project. Nardo said Howell will cooperate with the company and return the money.

Transurban officials are asking those who received donations to return them. Kulper said the money will be donated to the Court Appointed Special Advocates program, which provides help to abused and neglected children in court. Company officials said they discovered the violations in February and began an internal review. In recent weeks, they contacted the Federal Election Commission, which is looking into the problem and could fine the company.

Transurban, major toll road player, riddled with debt, seeking handouts

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Toll road operator shifts into reverse
By Scott Rochfort
Sydney Morning Herald
June 20, 2008

TOLL road operator Transurban has become the first of an expected long line-up of major infrastructure companies to go to the sharemarket for a handout, after it yesterday announced plans to raise around $1 billion in capital in an effort to reduce the level of debt on its balance sheet.

In a stark reversal to Transurban’s deliberate strategy of gearing-up its balance sheet under former chief executive Kim Edwards in late 2006, the group’s new CEO Chris Lynch said the model of using debt to fund distributions was “not sustainable in this market”.

Advocating a “new investment proposition to the market”, Mr Lynch said the increased cost and difficulty in raising debt meant the company needed to return to a “more basic business philosophy”.

“This is more a fair dinkum business that we’re talking about here. What we’ve got are great assets and we’ve got strong cash flows that will grow coming off [the equity raising],” Mr Lynch said.

Transurban, operator of Sydney’s M2 motorway and Eastern Distributor and Melbourne’s CityLink, maintained its guidance of a 58c payout this financial year.

But in a rude shock to Transurban unit holders reliant on the distributions paid by the company, it said distributions would fall to 22c next financial year.

But Mr Lynch stressed the capital raising and new distribution policy would put Transurban on a sounder footing to allow it to fund new initiatives, such as Vancouver’s Port Mann Highway project for which it is shortlisted.

“We’ll have a lower yield than we would have if we targeted the aggressive debt-based distribution,” he said.

“But we’ll also have a much better growth story because we’ll have an underlying business that can do some things other than figure out how it’s going to feed this big distribution.”

Transurban said a placement of 120 million shares managed by UBS would be fully underwritten by the Canadian Pension Plan, with which it has partnered several toll-road projects.

A further 75 per cent of the group’s planned $239 million (29c per security) second half distribution reinvestment plan has been underwritten by UBS, and up to $100 million of stock will be offered to retail shareholders via a share purchase plan. The purchase plan will be capped at $5000 per unit holder and at a 2.5 per cent discount. In all, the raising will represent about 16 per cent of Transurban’s current market value.

Transurban shares remained in a trading halt yesterday but the move was enough to trigger a sell-off in other toll road operators, such as ConnectEast, the owner of Melbourne’s yet-to-open EastLink. Its shares plunged to a new low.

Macquarie Infrastructure fell 24c to $2.68, while the ports operator Asciano plunged to a new low of $3.32 on concerns it could be forced to raise capital to ease its crippling debts.

It is less than two years since Transurban started loading more debt on to its balance sheet.

At the group’s annual meeting in 2006, Mr Edwards argued the re-gearing of Transurban’s balance sheet would not raise its cost of debt.

Poll: 9 in 10 hit hard by gas prices…it's no time for tolls, too

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The only people left on the planet who think toll road proliferation the politicians courted by them. Politicians beware…your comeuppance is coming if you continue down this path. Just a $.20 cent per mile toll is like adding $5 to every gallon of gas you buy (if one’s vehicle gets 20 MPG). There’s nothing like a shrinking household budget (due to higher gas and now food prices) and stagnant wages to stir-up trouble at the ballot box!

Tuesday, Jul 1, 2008
Poll: 9 in 10 hit hard by gas prices

By ALAN FRAM
Associated Press Writer

Four-dollar gasoline has stolen a beach vacation from Julie Jacobs’ family, “little small luxuries” like exotic bath washes from Angela Crawford and dinners out from folks all over the country. Phil English has had to sell his beloved but fuel-guzzling red pickup.Like a plague that hits every economic class, race and age, soaring fuel prices are inflicting pain throughout the U.S. Nine in 10 people are expecting the ballooning costs to squeeze them financially over the next half-year, says an Associated Press-Yahoo News poll released Monday.

Nearly half think that hardship will be serious. To cope, most are driving less, easing off the air conditioning and heating at home and cutting corners elsewhere. Half are curtailing vacation plans; nearly as many are considering buying cars that burn less gas. U.S. auto companies are closing plants that make pickups and SUVs that people have stopped buying.

As the price of gasoline has spiraled upward, so, too, has the public’s ire.

Two-thirds consider gas prices an extremely important issue, edging the economy and outpacing health care and Iraq as the country’s most distressing problem. In November, when gas cost about $1 a gallon less than today, just under half rated it extremely important.

“Do you think there’s an end in sight? I don’t,” the 33-year-old Crawford, a Dallas homemaker, said in an interview.

She said switching to bar soap from a favored lotion is one of many “little small luxuries” she has given up, along with fewer restaurant meals and new clothes. She also has talked with her husband, a flooring contractor, about finding a job involving less long-distance driving with his heavy van.

“It’s depressing and it makes you nervous,” she said.

The AP-Yahoo News poll, conducted by Knowledge Networks, has tracked the same 2,000 people since last fall to see how their views change during the presidential campaign. The latest survey shows how the price of gasoline has caught or eclipsed every other issue, not just as a political topic but as a problem in people’s lives.

“You’re saddened prices are going up, and you can’t do the extra things you would have done,” said Amy Pysarenko, 35, of San Antonio, whose concern about gas prices has grown since November. She says while her family has cut back on amusement park visits and saving for their children, “I feel fortunate because maybe someone else eats beans instead of hamburgers.”

The 47 percent in the most recent survey who expect higher gas costs to cause serious hardship is about the same as in last year’s poll, but an increase from the 30 percent who said so in an AP-Ipsos poll in June 2004. Then, regular gas averaged $1.97 a gallon nationally, according to the federal Energy Information Administration.

Lower-income people are bearing the brunt of it. As higher prices push grocery, pizza delivery and other costs upward, just over half of those without college degrees – and about the same percentage of those earning less than $50,000 a year – are expecting serious personal financial problems to result.

“We just don’t do as much,” said William Fisk, 39, a former dishwasher in Freeport, Maine. “We used to go out to have dinner, but we’re cutting way back on that.”

Yet significant numbers of the better-off are feeling pain, too. Four in 10 people in families earning $50,000 to $100,000 annually, and one in six earning more than that, expect serious financial hardships from rising gas costs, as do one in three college graduates.

Many lower-earning families are responding by easing their use of air conditioning and heating, trimming vacation plans and cutting other spending. But higher-income people are not far behind.

Two-thirds of those earning under $25,000 a year are cooling and heating their homes less, as are nearly six in 10 people earning more than $100,000. Just over four in 10 of the lowest earners are cutting vacation spending – only slightly likelier than those earning at least six figures to do so.

Rich or poor, black or white, young or old, nearly everyone is looking to drive less: A nearly uniform seven in 10 say they are reducing driving. That compares with six in 10 who said so in an April 2005 AP-AOL survey.

Jacobs, a homemaker and mother of three in Baltimore, said gas costs forced her to turn down two summer trips – a cousin’s wedding in North Carolina and a vacation with her parents in Myrtle Beach, S.C.

“My parents said, ‘Come down, spend a week with us,'” said Jacobs, 35. “But when you add on the expense of gas, it’s just not worth it.”

Ironically, Jacobs plans to begin taking lessons this week for her first driver’s license. “Just as prices go through the roof,” she said.

Four in 10 are considering buying vehicles that get better gas mileage than their current ones. That is about the same percentage who said so three years ago.

Some have already taken that step. English of Papillion, Neb., sold his 1998 Ford pickup, which got about 13 miles per gallon, for a more fuel-efficient convertible.

“It was a nice truck,” said English, 43, an aircraft mechanic. “It didn’t feel good” to get rid of it “and it still doesn’t,” he said.

Midwesterners are among the likeliest to think rising gas costs will cause them serious personal hardship. Southerners are among the more willing to reduce driving.

As a political issue in the presidential campaign, gas prices provide a slight edge to Democrat Barack Obama. More prefer him over Republican John McCain to handle the problem, 28 percent to 20 percent, while an additional 18 percent trust both equally.

There is a strong sense of powerlessness. One-third do not think either candidate can deal with the problem. That includes half of independents, one-third of Republicans and one-quarter of Democrats.

The AP-Yahoo News survey of 1,759 adults was conducted from June 13-23 and had an overall margin of sampling error of plus or minus 2.3 percentage points. Included were interviews with 844 Democrats and 637 Republicans, for whom the margins of sampling error were plus or minus 3.4 points and 3.9 points, respectively.

The poll was conducted over the Internet by Knowledge Networks, which initially contacted people using traditional telephone polling methods and followed with online interviews. People chosen for the study who had no Internet access were given it for free.

AP Director of Surveys Trevor Tompson and AP News Survey Specialist Dennis Junius contributed to this report.