In June 2007 we ceased being ratepayers to the city of Sydney in the state of confusion, corruption and incompetence, also known as NSW. At one stage (and probably still) NSW had more PPP roading infrastructure than any place in the world, all of it focused on Sydney.
All of, apparently, sucking on the public teat. Harbour tunnel a $1b black hole.
In Confessions of an Economic Hit Man, John Perkins describes the process for colonising a country by economic stealth. His job was to do supposedly independent research that showed grossly excessive potential returns from a nation's resources, if only they would borrow the money to build the infrastructure to release all that wealth.
The wealth, of course, never appears, but the financial obligations put the sucker nation in thrall to its bankers, forever; and then they begin the real job of looting the country blind. Whether the larger conspiracy is in play is always controversial, but the effects of the process are not in doubt, and it looks like the predation is not only on "other people", they also predate their own.
Having the private sector BUILD your infrastructure is fine, but when the ribbon gets cut, so should any relationship with the contractors except warranties for shoddy work.
How long will it take the electorate to wake up to the idea that public private partnerships for infrastructure are a scam and the three P's stand for Pinching the Public Purse? Actually, I know the answer; when the public money runs out.
All of, apparently, sucking on the public teat. Harbour tunnel a $1b black hole.
THE State Government is expected to pay $1.1 billion to the owners of the Sydney Harbour Tunnel over the next 14 years - twice the $550 million construction cost - due to overly optimistic forecasts about toll revenue.
The surprise liability has been disclosed by the NSW Auditor-General, who confirmed the Government paid the tunnel owners - Transfield, Kumagai Gumi and Tenix - $58.9 million in 2007-08 alone.
The Auditor-General has forecast this annual payment will rise steadily over the next five years, approaching $100 million a year. The first of the city's privately owned road tunnels, the Sydney Harbour Tunnel is a growing drag on state finances. It is not alone: two other road tunnels - the $680 million Cross City Tunnel and the $1.1 billion Lane Cove Tunnel - have run into financial difficulties because traffic volumes fell well short of projections.
Sydney's other road tunnel, the M5 East, is owned and operated by the Government. The Lane Cove Tunnel was again downgraded by Moody's Investor Services this week.
The surprise liability has been disclosed by the NSW Auditor-General, who confirmed the Government paid the tunnel owners - Transfield, Kumagai Gumi and Tenix - $58.9 million in 2007-08 alone.
The Auditor-General has forecast this annual payment will rise steadily over the next five years, approaching $100 million a year. The first of the city's privately owned road tunnels, the Sydney Harbour Tunnel is a growing drag on state finances. It is not alone: two other road tunnels - the $680 million Cross City Tunnel and the $1.1 billion Lane Cove Tunnel - have run into financial difficulties because traffic volumes fell well short of projections.
Sydney's other road tunnel, the M5 East, is owned and operated by the Government. The Lane Cove Tunnel was again downgraded by Moody's Investor Services this week.
In Confessions of an Economic Hit Man, John Perkins describes the process for colonising a country by economic stealth. His job was to do supposedly independent research that showed grossly excessive potential returns from a nation's resources, if only they would borrow the money to build the infrastructure to release all that wealth.
The wealth, of course, never appears, but the financial obligations put the sucker nation in thrall to its bankers, forever; and then they begin the real job of looting the country blind. Whether the larger conspiracy is in play is always controversial, but the effects of the process are not in doubt, and it looks like the predation is not only on "other people", they also predate their own.
Having the private sector BUILD your infrastructure is fine, but when the ribbon gets cut, so should any relationship with the contractors except warranties for shoddy work.
How long will it take the electorate to wake up to the idea that public private partnerships for infrastructure are a scam and the three P's stand for Pinching the Public Purse? Actually, I know the answer; when the public money runs out.
c.f. Ponzi scheme ;)
Posted by: Saltation | December 12, 2008 at 09:35 AM