Re: Why don't they just build it themselves?

[mauried@tpg.com.au (Maurie Daly)]

On Thu, 12 Apr 2001 11:36:05 GMT, "Peter Berrett"
<pberrett@optushome.com.au> wrote:

>
>Hi all
>
>I appreciate that this is a radical idea but why don't they just spend the
>money themselves and build it?
>
>As I understand it the cost was about $700+ million and they were prepared
>to put in about 2/3 of that to get private sector funding.
>
>$500 + million would get a couple of key lines built fully at least,. Once
>built the funds generated by imcreased patronage (milked from the private
>operators by way of impost) could be put towards doing te remaining lines.
>
>Mixing private and public sector funds is not a a good idea IMHO. Better to
>go the whole hog yourself.
>
>cheers Peter
>

Yes , its totally unclear to me why private sector investment is
needed at all for projects like this,and its also unclear just what
the end benefit to the rail users is from having private sector
investment, other than higher fares.
(Look at the fares on the Sydney Airport line.)
A cynical view would be that making the projects contingent on private
sector funding means that the Govt can conveniently never build the
lines when private secror funding isnt forthcoming and not have to
take any blame itself.

MD