NSW could be $4.5 billion better off

NSW could be $4.5 billion better off! Sometimes governments can be more efficient than private sector, in certain *specific* areas. This is why I’m into “Social Liberalism: Civil rights, Social Justice and State funded welfare in a Market Economy”. It seems State funded roads can be plugged in there as well.

Corporations build a road, charge a toll, and take the profits overseas. State governments should build a road, charge a toll, and invest the profits locally.

Nicholas Gruen, says governments should build road infrastructure themselves rather than rely on the private sector.

“The fundamentals are that if you have got a strong balance sheet and you have got infrastructure needs, then you use that balance sheet to borrow the money and build the infrastructure,” he said.

“That is the cheapest way, the most effective way, fairest way to do it.

“I am a fan of the private sector. I am in the private sector. But building roads is not really a very sensible thing to do for the private sector, generally speaking.

“That is because the asset is mostly capital and because one ends up having to write contracts which cost millions of dollars to write and then constrain the government in making planning decisions for the next 20 or 30 years.”

 

Motorists ‘sold a line’ on toll road model – ABC News (Australian Broadcasting Corporation).

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