Double Dipping !

This weekend the long awaited second stage of the WestConnex motorway will deliver a faster crossing of southern Sydney, but it will come at a cost to motorists.   This section will connect Kingsgrove with St Peters at a toll of $6.95 for each car and a higher toll for trucks and buses.  It seems that Sydney is fast gaining the inglorious title of being the highest tolled city in the world.

That is happening because of a change of philosophy.   The daily commute was getting longer and slower and we simply did not generate enough money in this state to pay for the work that was needed.  The state government put a plan to the people that some described as " pawning the family silver " !

At that time, generating the electricity that kept the lights on in New South Wales was a government responsibility.  It was suggested that if this public works was sold to the private sector it would generate the money needed to renew all sorts of deficiencies and usher in a utopia of modernity.  In particular, New South Wales was promised a better road system and an upgrade of the rail network.

A lot of people had reservations about that plan.  It was suggested that selling electricity in the money market would lead to price rises and put the reliable supply in jeapardy.  To make matters worse electricity was generated by old, coal fired power stations at a time when science told us that we needed to stop burning fossil fuels to stop the onset of global warming.

That sale of the electricity supply did take place and suddenly the state was awash with billions of dollars of unemcumbered money.  Improvements were scheduled for the rail system and included a new Metro.   The city regained light rail with trams running in the streets and we are in the middle of an ambitious plan to create a fast road network which features new underground tunnels to speed the traffic flow.

Public thinking at that time expected these improvements to be paid for from the largesse provided by the sale of the elctricity network, but what emerged is something that many now see as " double dipping ".   The moment a new roadway section is completed it is sold off to a finance company which recovers the cost and makes a profit by installing a toll.  As the roadway extends, so does the toll and eventually any journey made in speed and comfort will be at the cost of a toll.

This philosophy is ongoing.  As the road system incorporates a toll, the money it generates is used to fund other improvements that have been left undone because of the lack of money. As a result of that electricity sale, the ownership of the means of generating power now relies on commercial interests and the price per household seems to be ever rising.  There is a real risk that the capacity may not meet demand in the hotter days of the coming summer.

It seems that this is a world trend.  Public assets are passing into the hands of the private sector to generate the money needed to provide public facilities that are otherwise outside of government reach.   Each stage imposes a new debt on the public and increases the cost of living.

This does deliver a tangible benefit in the early stages, but when it is projected into the future the end result is frightening.