TORONTO, (June 14, 2005) — The Ontario Liberals have gained back some slack in the seemingly never-ending tug of war between it and the private company that controls the 407 highway.

Transportation Minister Harinder Takhar said the government has been granted leave to appeal the latest court decision siding with the 407 ETR. In January, Justice Maurice Cullity of the Ontario Superior Court upheld an earlier decision by an independent arbitrator that ruled 407 ETR is not required to submit a Change Request, nor obtain any other government approval to change tolls or fees.

The McGuinty government pledged to roll back tolls as part of its election campaign in 2003. It has been in court battling 407 ETR — a private consortium that bought the 108-km highway from the Conservative government in 1999 for $3.1 billion — over control of toll operations ever since.

The opposition Conservative government — as well as third-party financial agencies familiar with the contract — have echoed 407 ETR’s position that the government’s legal argument is weak and that it does not have any legal standing to direct tolls.

When the Liberals were dealt their latest blow in January, Conservative leader John Tory said the Liberal government was never in a position to make such a “reckless election promise” to consumers, and is fighting a battle it can’t win with taxpayer dollars.

Still, the government presses on in its drive to renegotiate the 99-year tolling agreement with 407 ETR, and has other legal cases pending.

“We’re pleased the Ontario Court of Appeal has agreed that we have grounds for appeal. This gives us a chance to further make the case that this is a matter of extreme public importance,” Takhar said in a release. “We have always maintained that we have a legal case in this matter, and that the 407 ETR must get government approval before raising tolls.”

Enrique Diaz-Rato, president and CEO of 407 ETR says that he’s confident the company will win this latest round as well. “We already have had two decisions in our favour on this dispute,” he said. “However, we remain very confident in our legal position and look forward to having the issue heard by the Court of Appeal as soon as possible.”