Nigel Replies,
I don't disagree. But I do point out the difference that the railways
in their infancy were financed commercially, in contrast with today where
much transport in the UK, road and rail is subsidised. I have no objection
to free global competition - however, producers should pay their full transport
costs. In the UK the state owned road network is subsidised by the taxpayer
- in effect running at a loss. As the roads are state owned we citizens are
the owners. Reading
Part 4, Commercialising the Road Network you will see I argue our
ownership of the roads should be formalised as a proper corporate shareholding
for all citizens. We would then take the responsibility for the pricing and
management of roads through the Directors we would appoint. The price would
therefore become economic and we would receive a dividend on profits instead
of the current heavy taxes we have to pay to subsidise the road network.
Another benefit of economic pricing will be the balancing of supply and demand,
reducing congestion (which in the UK is often appalling) making road journeys
far more reliable. At the same time this would change the economic balance
to encouraging business to locate more where they are needed. This is not
a black and white issue there is a place for all levels of business from
very local to global. Economic pricing of transport (only possible if taken
out of the hands of Government and run commercially) will encourage
the most appropriate business to evolve to serve the customer.
Corporations are managed in democratic ways similar to governments. Corporation
owed by all citizens may suffer shareholders politics and directors abuse
the same way as governments.
Nigel Replies,
True; but the current situation is economically unsustainable in the UK,
the roads are like a bottomless pit for taxpayers money yet are getting more
and more congested - UK roads are an asset worth £337billion which
if managed efficiently and priced economically would be returning a dividend
to citizen shareholders and provide the finance for reinvestment with supply
meeting demand reducing congestion.
The price would therefore become economic and we would receive a dividend
on profits instead of the current heavy taxes we have to pay to subsidise
the road network.
Government is not a business. It is hard to make profits from state security,
welfare services or fire fighting.
Nigel Replies
Good arguement to take roads away from Government, then roads can make a
profit and provide wealth for citizens instead of being a burden on the taxpayer.
Some roads are built to afford access to small communities without economical
justifications
Nigel Replies
Roads to small communities are a tiny fraction of the cost of main roads,
typically £0.6million per km compared with £5.9million per km
for motorways. The maintenance of these roads are so tiny in comparison with
major roads that the current method of finacing roads in the UK means the
remote rural resident pays disproportionately more tax in relation to the
costs they impose on the road network in effect cross subsidising the urban
or inter urban road user. Economic pricing of roads following their commercialisation
would be a major benefit to small communities.
Another benefit of economic pricing will be the balancing of supply and demand,
reducing congestion (which in the UK is often appalling making road journeys
far more reliable.
It is a good idea if not faced political and legal problems.
Nigel Replies
Get the politicians out of the equation by transfering ownership of roads
directly to citizen shareholders.
At the same time this would change the economic balance to encouraging business
to locate more where they are needed.
This is a kind of political problem.
Where business locates is entirely up to the business - there should be
no political interference. If transport continues to be subsidised - business
will tend to continue to locate in the dispersed pattern familier towards
the end of the 20th century requiring longer journeys to transport goods,
employees and customers. Economically priced transport, businesses will tend
to locate in the optimum location requiring less transport for their goods
- more convenient for customers and employees. e.g. There may be an increase
in jobs factories and shops in my home town so that we can walk for our needs
again instead of having to drive to the larger neighbouring towns.
This is not a black and white issue there is a place for all levels of business
from very local to global. Economic pricing of transport (only possible if
taken out of the hands of Government and run commercially) will encourage
the most appropriate business to evolve to serve the customer.
I am amused with the idea that the burden to be responsible for the roads
will be delegated by English government to, lets say, the four large car
manufacturers in England. Each one will be responsible to one of four parallel
routes. Than when you buy a car you buy a certain level of competing infrastructure.
When it happens resources will be shifted from redundant gimmicks to solve
real problems.
Nigel Replies;
People made similar comments prior to the UK privatisations of industries
such as telecommunications and energy supply. However if you read
Part 4, Commercialising the Road Network you will see how I propose
to transfer ownership of the roads directly to we citizens - for the benefit
of citizens. If some citizens choose to sell their shares to car manufacturers
or anyone else that will be entirely a matter for them. However - once commercial
the focus of road management will be to make a profit by serving their customers
- which will be a great improvement on Government management with the focus
on controlling use of public money and pleasing the pressure groups that
shout the loudest.