TORONTO -- Truck drivers are arguably the principal benefactors of a dispute settlement between the Ontario government and the owners of the private 407 Highway north of Toronto.

The two sides have been engaged in a series of drawn-out court battles ever since the Liberals promised they would wrestle away control of highway tolls and other operations during the party's election campaign three years ago.

Independent observers and opposition critics have since argued that the government didn't have a legal leg to stand on in demanding the right to limit tolls because the contract signed by the consortium that owns the 108-km highway and the former Tory government clearly states the private company holds the right to increase tolls at its discretion.

Numerous arbitrators and judges confirmed the 407's position over the years. Not only have the courts upheld the highway's right to raise tolls, but recently an Ontario Court of Appeal denied the government's appeal of a divisional court decision ordering the Ontario Registrar of Motor Vehicles to deny vehicle permits to individuals who refuse to pay their 407 ETR toll bills.

As part of this new agreement -- which is based on several provisions -- all existing disputes and litigation between the two parties will be settled. In particular, the government will dismiss its pending appeals of the toll setting and base year disputes and will accept as final and binding all court and arbitration decisions released to date, ETR states in a press release.

"We have successfully resolved our disputes. This is a reasonable settlement for both sides and we look forward to a new era of cooperation with the Government," said Enrique Diaz-Rato, president and CEO of 407 ETR in a statement. "We have achieved certainty and stability. In addition, we will improve services to our customers on and off the highway and provide new benefits to our best customers."

As part of the settlement the two sides agree to the following:

-- A new Heavy-Vehicle Reward Program will save eligible (those that use transponders for all ETR trip usage) truckers up to 50 percent off of night and weekend rates; 25 percent discount on off-peak rates; and elimination of all heavy vehicle flat video toll charges. Second tier drivers, as determined by a new independent auditor, will see similar, but slightly reduced discounts.

ETR spokesman Dale Albers adds that for the program to continue, the 18 percent non-compliance rate of truckers that do not use transponders on all trips must improve in the future.

-- The introduction of a $40 million, Customer Benefit Program over the next four years. The program will save about 100,000 top-tier ETR customers about 10 to 15 percent of what they pay in tolls. The company will establish the structure of the program, including the right to change parameters and criteria for eligible customers.

The program will begin March 2007. In the meantime, states Albers, the company agrees not to raise tolls for at least one year until the program is in place.

-- The addition of over 100 km of new highway capacity by late 2007. The company agrees to widen the highway by one lane in each direction between the highway 401 and 404 interchanges. The province has agreed to expedite approval so that the scheduled Oct. 31, 2007 completion date can be met.

-- Settlement of all outstanding disputes between the 407 ETR and the province includes the appointment of an independent auditor as well as an ombudsman who will advocate for 407 users. Their responsibilities, among other things, is to oversee the licence plate denial process.

The company will also publish a dispute resolution process and a repayment plan for users with outstanding toll bills.