Quote:
Originally Posted by MalcolmTucker
That gas taxes are not kept in a ring fenced account does not mean that they are not somewhat allocated, and definitely does not mean that they aren't user fees. Airlines, railways and ships have different taxes. Even diesel for offroad and farm use has different tax treatment.
I think you misunderstand what natural monopolies are especially for roads. Imagine 3 private road companies maintain competing road networks. Right now in Canada the government holds and runs a monopoly on roads.
And what problems monopolies cause. A natural monopoly could provide excellent service to VIA. The two things aren't connected.
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A monopoly is the following;
1. entrance to the service is controlled either by government or by the entities of the sector
2. prices are controlled by the sector
3. use of the assets of the sector's assets by other 3rd parties controlled by the sector's limited participants
4. the sector can make pricing, operational decisions and investment decisions only for the participants.
All of these are true with railways and not true with highways. You only need to have enough capital to buy 1 truck, obtain your fist client, license and insurance and viola you are a participant and other trucking companies cannot prevent you from operating. While the construction an maintenance of highways are outside the control of trucking companies and other users of the highway infrastructure the operation of the participants generally is not limited. It is only the construction and maintenance of hishways which is generally monopolistic.