Interesting idea

There is, though, another way: a specially created company, Kilbride Community Rail, has been looking at paying for the reopening of lines by being allowed to cash in on the potential profits from local developments that will sell for more if they are on a rail line. That would be genuinely entrepreneurial thinking, something that is sadly lacking in today\’s railway industry, which has many of the failings of the old British Rail – government interference, lack of initiative, poor service – combined with the rapaciousness of profit-maximising private operator companies.

If an old one. Wasn\’t it used to get Canary Wharf to pay for part of the costs of the extention of the Jubilee line?

And isn\’t it simply a variation of land value taxation?

4 thoughts on “Interesting idea”

  1. It’s also what Canary Wharf is doing for its Crossrail contribution. And how the Metropolitan Railway funded its entire roll-out, while also building most of outer north-west London. And how the underground systems in Singapore and Hong Kong were funded.

  2. In the 19th century local businessmen in an area would often organize to build a railway. They would benefit from the better communications links. Sometimes they would start a company. Sometimes they would organize to buy shares in an existing on that did this for them.

    LVT is not needed in an environment where those who benefit from building a railway can do what I’ve described.

  3. @2 got any examples? in .uk pretty much all rail development was either ‘charismatic promoter launches get-rich-quick scheme on stock market’, or a new investment promoted by a large, established, railway company.

  4. @2, the issue with that approach is the free rider problem.

    If the railway is a viable business in its own right, then, planning issues aside, you’d expect it to be built.

    If the railway is only viable if it captures the external benefits it creates, it becomes precarious, because, while collectively the businessmen in an area might benefit from it being built, the rational thing for each individual businessman to do is to refuse to contribute, hope the railway is built and reap the rewards.

Leave a Reply

Your email address will not be published. Required fields are marked *