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Evaluating public private partnerships : Comments
By Tom Richman, published 17/10/2005Tom Richman asks if using a Public Private Partnership to finance the road infrastructure provides value for money.
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Its not possible to generalise, but all too often I think we get the following situation; A piece of infrastructure (lets say a cross city tunnel) costs $X to build, we can have our inept state government build it for $2X, or our highly efficient private sector build it for $X but then charge us $3X to use it. Whilst I hate inefficiency, at least the government is answerable to some extent to the taxpayers, whereas the private sector is answerable to its shareholders.
From the taxpayers viewpoint the private sector can turn out to be more inefficient than the government if it uses its monopoly to gouge taxpayers.