Friday, November 9, 2012

Paying for light rail

Andrew Barr has announced how light rail will be paid for, in a press release addressing the concerns of the Opposition in respect to accommodating both Green and Labor Party election spending promises. 

Third, light rail will be funded in partnership with the private sector. The cost won’t be met upfront from the ACT Budget, and will be spread over the life of the project. In addition, the Government will receive offsetting revenue – such as from redevelopments along Northbourne Avenue – which will help fund the project.

This is the first time language like this has been publicly used by a Labor politician. ACT Light Rail has long maintained that increased commercial and residential construction (and associated stamp duty and rates) attracted by light rail construction, would contribute significantly to the ACT Budget. It is nice to see this concept acknowledged. 

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