Eddington report and Infrastructure Funding cracks

Wednesday’s release of the much anticipated Eddington report has seen many questions asked on the viability of the road tunnel. Analysis of the cost-benefits report show that whilst the rail tunnel will return 1.20 for every dollar spent, the road tunnel will barely come out ahead. $18 billion is required to cover the Eddington plan. Struggles are expected to fund the East-West road link with the lack of exit ramps in the city. Kenneth Davidson commented on Wednesday’s Renegade Economists radio show that this is a typical ‘salami strategy’ to diffuse criticism of the plan and then include the on/off ramps later.

Nowhere in the report was a discussion covered on the economic benefits infrastructure provides to land values. Those lucky enough to own land near an on/ off ramp (or a new train station/ improved services) will be delivered a windfall gain in land values. With the massive infrastructure deficit Victoria, Australia and the world are facing, one wonders how high tolls are to be an effective funding tool with examples such as Sydney’s Cross-City tunnel rendering new services unusable. As this letter by Gavin Putland points out, infrastructure models promoted by Macquarie Bank based on tolls must be reformed to include land value capture funding.

Check this extensive list compiled by the Scottish Government on how land value capture can in fact totally fund infrastructure provision. Minnesota has also recently announced a land value capture study. Make sure you read the Minnesota piece – top investigative journalism.

Analysts of the media game suspect that the current PR lobbying on congestion and lower tolls are a means to soften up the public to allow the smooth passage of this report into legislation, benefiting the biggest financiers, construction companies, lawyers and most of all – landowners in the State.

3 Comments

  1. anon02-12-2008

    This Eddington Report is an Absolute No-Brainer..

    The quote of $18 Billion is grossly underestiated… The time given for completion was also HEAVILY reduced, because if the REAL completion date would have been given – this would NEVER have been given a second thought….

    The land they are proposing to run the East – West link is not going to be easy…
    NOT ONE SINGLE RUN OVER THE PROPOSED SITE WAS TAKEN UP…???

    Sir Eddington is well aware of this, but as he is also aware that once the go ahead is given, the figure of $18 billion will quickly surge to over $34 Billion, AND
    the “REAL-TIME” of completion of 2021(YES-2021), will not be revealed until 18months prior to the current estimated period…

    IT IS UNFORTUNATE THAT THIS EDDINGTON REPORT IS ONLY ABOUT MONEY & THE BILLIONS HE(SIR ROD) PROFITS (mainly by overcharging on an OBSCENE LEVEL NOT SEEN IN AUSTRALIA IN OUR CIVILIZED HISTORY)..WILL NOT BE DIRECTLY CONNECTED TO HIMSELF OF COURSE..He cannot risk tarnishing his title of “SIR”.. I personally would spell that differently.

    Unfortunately, the Residents in the west & Maquarie Bank will be the biggest losers on this one…
    , but as i said, once approved, there’s NO TURNING BACK.

    Sir Rod Eddington has NO idea as to the area his report covers.. His report did not include ANY of current problems they will encounter(but he is VERY aware of them).

    This report was done by solely looking at a map… THIS IS DOOMED TO FAIL…!!

    AND WILL FOREVER BE KNOWN AS THE BIGGEST SCAM IN HISTORY (IF HE IS EXPOSED)…

    IF IT IS PROOF YOU REQUIRE, WE ALL ARE BOUND BY PRIVACY LAWS, BUT IF PROVIDED IMMUNITY AGAINST PROSECUTION, EVERYTHING WILL BE REVEALED….

    *EVERYTHING* ABOUT THE supposed “?good?-natured” SIR ROD EDDINGTON.

  2. Karl Fitzgerald
    admin02-12-2008

    i dont know about the biggest scam in history…Paulson may have a claim on this title. I agree on most levels, the Economic Hitmen prevail!

  3. Gerald E.09-12-2008

    I have just heard the east-west part of the Eddington project has been dumped & will no longer go through..

    anon is spot on about “sir rod eddington”.

    This will not be the biggest scam in Australian history, for the simple fact the government did not fall for this report, which was NOT going to be completed AT ALL..

    CONGRATULATIONS VICTORIA, YOU SAVED YOURSELVES THE EMBARRASSMENT OF A LIFETIME…!

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