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Tollways

#1 User is offline   dumbcluck 

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Posted 23 March 2013 - 03:40 PM

Can it be explained why it is quite evident that tollways in NSW are extremely profitable as it attracts private funding for their construction without fail.However the State Government instead of funding and building them (thereby excluding private involvement) where then those profits can be put in a contingency fund at State Treasury for use in our hospitals, schools etc fails to do so.
What a waste of financial resources for the State Government...and us the people of NSW
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#2 User is offline   Bam 

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Posted 23 March 2013 - 06:56 PM

Privately-owned toll roads have a greater total cost of acquisition than the good old-fashioned way of a government borrowing money to build the road. Instead of servicing the loan and only getting it for the extra cost of the interest, the toll road becomes a cash cow for the company that owns it, and the tolls raised are greater than the interest that would have been paid on a publicly-funded road.

It's even worse when publicly-funded roads have tolls slapped on them later.

Citylink in Melbourne raises about $15 in tolls per second. Given the road is tolled for 33 years, the road raises about 16 billion dollars raised in tolls for a road that cost just 3 billion dollars to build.
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#3 User is offline   dumbcluck 

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Posted 23 March 2013 - 10:30 PM

I do not know the intricacies of it but if private companies can do it successfully so can government. A "cash cow" serving government is much better than a "cash cow" serving private interests. The latter do not regenerated the cash back into state government programs like schools and hospitals
Why do they refuse to do it? Perhaps due to dogma?.... perhaps they want to impress the Americans? Perhaps they have friends in the industry? No one knows
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