FINANCING OF ROADWORKS

AN IDEAL SYSTEM OF FINANCE FOR ANY ECONOMIC ACTIVITY SHOULD PROVIDE AN INCENTIVE TO MAKE THE BEST USE OF EXISTING RESOURCES, AN INDICATOR OF THE AMOUNT AND DIRECTION OF DESIRABLE NEW INVESTMENT, AND A SOURCE OF FUNDS TO PAY FOR THAT INVESTMENT. THE PRESENT BRITISH SYSTEM OF ROAD FINANCE FAILS ON ALL THREE COUNTS. THIS PAPER ARGUES THAT INVESTMENT CRITERIA FOR ROADS SHOULD BE DETERMINED BY COST BENEFIT ANALYSIS; THAT THERE SHOULD BE A COMPLETE SEPARATION BETWEEN THE CHARGES LEVIED ON ROAD USERS FOR THE USE OF ROADS AND THEIR CONTRIBUTION TO GENERAL TAXATION; AND THAT ROAD USE CHARGES SHOULD BE DIRECTED TO MAKING THE BEST USE OF EXISTING RESOURCES AND TO PROVIDING FOR THE FINANCE OF NEW INVESTMENT. TO THIS END, THE PAPER ADVOCATES THE SETTING UP OF A ROADS AUTHORITY WITH BORROWING POWERS AND WITH AN ASSURED SOURCE OF REVENUE DERIVED FROM A FUEL TAX, A SPECIAL CHARGE ON CERTAIN TYPES OF VEHICLES AND A CONGESTION CHARGE. /AUTHOR/

  • Supplemental Notes:
    • Vol 16, No 9, PP 25-27
  • Authors:
    • Morgan, E V
  • Publication Date: 1969-9

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Filing Info

  • Accession Number: 00201724
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 16 1970 12:00AM