The London one while it collapsed did save the government money (the main reason it collapsed is the deal was one sided in favour of the government!), and it did get the government to actually commit to spend money on the maintenance finally, which the system hadn't been able to do under labour or conservative governments. And what was the result of the collapse? No deaths, no under funded maintenance. What was the result of the public investment plan before? Accidents and deaths.
A key benefit is forcing the public sector to commit to long term maintenance funding in a contract, one that the public sector can be sued for if the funding isn't there. It locks in the funding. In an ideal world, the public sector wouldn't have a problem performing adequate maintenance, but it continually does. Good maintenance as a preference over other demands on the public purse is the exception, rather than the rule.
In an ideal world, where we can amortize things over the life of the asset, instead of having stupid accounting fights, it would be great. But we do live in a world where the stupid accounting fights matter a lot, and those stupid fights can prevent an asset being built.
Surface rail is a different kettle of fish than underground infrastructure as well, we can't just arbitrarily stretch out the life of assets when they need substantial renewal earlier.
I also believe that companies subject to competitive pressure (even when they have to employ people based on existing collective agreements) do better at controlling costs, and at finding innovative solutions to control costs.
And we haven't even touched on the benefits of bundling, to ensure assets are built to reach the lowest lifecycle cost, not just the lowest cost (we've seen this failure happen in Canada with the Champlain Bridge). The Champlain Bridge is also a great example of improper and inadequate maintenance happening by spreading responsibility amongst agencies instead of concentrating it.
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Two half size lines costs much more than one full size line if built at the same time, and far more if the other one is built in the future.
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You have to not just look at the headline cost, but the cost of finance as well. 1) we have no certainty that cost inflation for construction which has happened recently will continue forever, it should re-converge with inflation (this is the same error people make when they buy a house to try to insulate themselves against future price increases) 2) We have to compare in inflated dollars, so it isn't as simple (as I'm sure you know) 3) We have to account for the value of both not spending the more money now, or spending that money on different things (assuming we are operating in an environment without unlimited money)
The point you make about getting a second line built later is a political problem, just as it is a political problem to try to get a larger line built in the first place. I'd argue that the political risk is equal in both cases, and therefor can't be taken into account.
Going away from your last post.
A lot of the arguments around P3s are unfounded, and based on an emotional appeal to a loss of control. But, there is no loss of control, the government is in full control. The government writes the tenders, sets the standards. Governments elsewhere before private entities came into the picture did this as well. A great example is the build out of the Italian autostrade. The government basically wrote standards, and created an entity within itself but at arms length to meet the standard with control over its own budget (it received its revenues directly, instead of them being subject to appropriation by the government), to make sure it wasn't subject to political whims. It isn't how Canada has delivered things, but it is a good way to do so.
Imagine if Toronto instead had set standards and signed a contract to deliver Transit City and locked it in, instead of trying to do things our way? Whether the tendering was to a public entity or private, Toronto wouldn't have suffered a lost decade.