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Cross your fingers on Cross River Rail : Comments
By Ross Elliott, published 13/3/2017In reality, the actual cost of the cross river rail project will be closer to $10 billion – and that's before the inevitable cost blow outs.
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Posted by Alan B., Tuesday, 14 March 2017 9:07:23 AM
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Those were heady day were losses were privatised and profits socialized.
Levity aside, tunnel projects ought along with all road and rail works, be undertaken by government agency, not avaricious corporations demanding maximised repatriated profit/avoided tax!
For two inescapable reasons, governments can almost always borrow at half the cost of private players! Are not crippled by shareholders and their eternal dividend expectations! Are able to outsource at will by the use of contract and tender instruments, and contain expected costs via penalty clauses.
Why even labor hire can be subject to similar arrangements, protected by the no disadvantage test!
With that list assembled, the project can be brought in, often ahead of time and inside the allowed budget. Which can be serviced by tolls low enough to guarantee maximum traffic.
Which is how these things are paid for! Even if some financial support needs to be found from modest increases in registration fees or fuel excise?
Just as long as maximum patronage continues. Only a matter of time before loans are repaid, the project in the black, with the income/toll charges allowed to rise, with the CPI or inflation whichever is the greater.
And when in the black the income stream can be directed at other bottlenecks etc, that need income earning projects (rail station high rise car parks/over or underpasses etc) built to remove the economic barriers they become!
Toll billing device in the windscreen better than delays caused by barriers or toll collecting human/robotic controllers!
Planned integration is key, rather than the par for the course adhoc rollout of projects to garner political support or favor! That's just dumb and a waste of precious resources!
Planning needs to be entirely independent and removed from the political fix or interference, to allow it/them become part of a maximised economy that becomes our slave, not visa versa!
Governments need to get back to core responsibilities as service providers! As opposed to duck shoving delay specialists and blame shifters!
Alan B.