With the federal election campaign today seeing Opposition Leader Tony Abbot promoting Infrastructure bonds with a 10% tax concession for investors, there is an urgent need for better understanding of infrastructure financing. Abbot’s plan should be written off as the interest rate spread between Australia and the rest of the world is significant enough not to need any incentives. Such … Read More
Toronto Collects Economic Rent to Finance Infrastructure
Frank de Jong, Green Part of Ontario Leader Frank toured Australia this time last year for the True Cost Economics Forum. He wrote this piece in lieu of exciting developments in Canada. For the first time to my knowledge, Toronto will be collecting economic rent to pay for infrastructure — in this case to redevelop a section of a busy … Read More
Land Value Capture in Geelong?
The City of Greater Geelong has sent in an interesting submission to the Commonwealth Senate Housing Affordability inquiry. We could hardly have said it any better ourselves: In the submission, the council says the capital being acquired by the private market when land is rezoned could be captured by the Government. “Across Australia, communities are creating billions of dollars of … Read More
Innovative Methods Of Financing Public Transportation
by Dave Wetzel
The income from fares is usually insufficient to pay for both the capital costs and operating expenses of a modern mass transit system.
Public transportation managers strive to provide safe, efficient, affordable, reliable, comfortable, clean, and convenient journeys for passengers. The service provided not only enables millions of people to travel but also has wider economic, social, and environmental impacts on urban life.
When planning for new public transportation investments, wider economic benefits are usually cited as an important reason for governments to provide subsidies towards the costs of construction and maintenance.