Online Newsletter
Sign up for our newsletter to receive the latest news and information from publics.bg

News

World news

19.03.2012 16:01

Cameron Calls for Plan to Privatize Britain’s Road Network

There is now an urgent need to repair the decades-long degradation of our national infrastructure and to build for the future with as much confidence and ambition as the Victorians once did, PM Cameron said

AUTHOR: publics.bg

© jo.sau@flickr.com

Prime Minister David Cameron said private investment in Britain’s roads must be accelerated, as he seeks ways to stimulate the economy without using public money, Business Week reported.

Cameron will ask the Treasury and the Department for Transport to explore ways of attracting “large-scale private investment” from sovereign wealth funds, pension funds and other private investors. He called for “new ownership and financing” plans to be in place by the third quarter.

“The truth is we are falling behind,” Cameron said in a speech in London. “There is now an urgent need to repair the decades-long degradation of our national infrastructure and to build for the future with as much confidence and ambition as the Victorians once did.”

While companies such as Carillion Plc (CLLN) already operate some U.K. roads, Cameron is looking at ways to pay for building programs that are being delayed because of his austerity plans. The prime minister said the U.K. loses 7 billion pounds a year because of road congestion.

“How do we do more when, frankly, there isn’t the money?” Cameron said. “We need to look at innovative approaches to the funding of our national roads.”

Cameron said he is considering several ways of running the road system. One option would be to establish a regulator that oversees private operators as already exists in the water industry.

“Road tolling is one option - but we are only considering this for new, not existing, capacity,” Cameron said. “It’s about getting more out of the money that motorists already pay.”

The premier outlined his plans two days before Chancellor of the Exchequer George Osborne presents his annual budget. In November, Osborne announced a 30 billion-pound (USD 47 billion) program to finance the construction of roads, railways and infrastructure projects.