• A wise and frugal government which leaves men free to regulate their own pursuits of industry and improvement. This is the sum of good government. - Thomas Jefferson

Gov't proposes rail-link boondoggle

By Luke McGrath  
Thu, 05/08/2010 - 7:23pm
Thu, 05/08/2010 - 7:23pm

While the British government is trying to offload their high-speed railway in an attempt to mitigate years of terribly bloated spending, here in Australia the government is not so cost-conscious.

The ALP has promised "up to $20 million for a feasibility study into a fast railway linking Brisbane, Sydney, Canberra and Melbourne" despite one study already putting the cost of this boondoggle somewhere in the region of $33 billion—$59 billion (gee, I wonder if this project would end up being under or over budget?)

The Age notes that "a high-speed rail trip between Sydney and Canberra would take less than two-and-a-half hours. That’s faster than travelling by plane, taking into account check-in and commuting to airports."

Excellent! I, too, am bothered by the number of hours politicians are forced to endure when travelling by air.

Let's not mention the fact that last year Greyhound Australia made an offer of free travel to all State and Federal MPs in an attempt to save taxpayers' money and to do their bit for the environment.

But of course no self-respecting politician would ever travel by bus.

No, what you want is to travel by high-speed rail. Now that's cool... Not to mention sustainable! 

On this latter point I must say I have to agree with Prime Minister Gillard. If this project were to go ahead it most certainly would be sustainable. Sustainable in that, no matter how much money it loses or how bad the service, it will be sustained.

Think Amtrak. You know, the government railway scheme that was promised to the American people as a money-making enterprise but instead loses money year-after-year, decade-after-decade? Over $25 billion has gone down that blackhole.

It is simply absurd to think that the ALP or the Liberal Party or any government could run such a service profitably (or safely). How much evidence do people need? One, two, three, four, five. Need I go on?

Heck, the NSW Government is so incompetent they can't even collect money for tickets properly. Perhaps they should have been paying closer attention to the Victorian Government. Their new ticketing system is—oh wait, that was a failure too.

Ultimately, the public has to recognise that there is a fundamental difference between government vs. private operation of business.

Think only governments can plan and fund large-scale rail projects? Think that individuals and firms operating in a free market would fail? Think again.

I'm sure we all want a

I'm sure we all want a high-speed railway going through these cities. The problem is if the government does it, it'll be a debt-ridden, inefficient monstrosity that nobody will want to use.

I'd think the government regulations for a private operator to start a railway project like this would be so high, they wouldn't even bother. Deregulate biatches!

Gov't crowds out the private sector

It's not just the regulations that would impede the private sector from going ahead with a similar sort of project. The gov't itself will always be an artificial competitor, they "crowd out" private investment in transportation through all their interventions.

What kind of entrepreneur would consider engaging in such an expensive project when they know that, come next election, some vote-seeking politician will promise the Australian people a similar sort of venture?!

People complain that there's too many cars on the road and that rail is a far more 'sustainable' form of transport - but neglect to mention that it was the gov't itself that built all the roads! For decades the gov't has subsidised travel by car and in the process distorted all the costs and benefits of alternative forms of transportation.

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