It Could happen you know!!

wexfordman · 31-10-2005 12:46pm #1

Rumour has it that the GOV is considering further privatising Irelands road infrastructure. The benefits, according to the minister for transport are huge, and we have already had a number of expressions of interest from various parties. The most likely candidate however is “Roadcom” who have given broad details of how they intend to run this vital part of the countries infrastructure: -

Some of the proposals on how Roadcom would propose to run the road network include: -

1) Roadcom will own 100% of all road assets in the country
2) Roadcom will regulate and charge for use on a per minute usage basis
3) In addition to this. In order to recover maintenance costs of the road network, Roadcom will charge a monthly rental in place if the existing road tax system.
4) The monthly rental will remain fixed irrespective of quality of local road infrastructure
5) The monthly rental will be allowed to rise, but only with permission from DOT.
6) Roadcom reserve the right to change or limit dual carriageway and motorway routes to single lane highways. This facility will allow maximum usage and effeciency of the road network. While it will increase the overall per minute usage of the network, Roadcom’s analysis shows that there is not suffeceint demand for dual carriageway/motorway usage in Ireland to justify usage.
7) On local roads to towns, industrial areas etc, Roadcom proposes an innovative park and ride system for both consumer traffic and haulage/delivery traffic. This system will require all users to park in a large car park at 1 mile from the destination. All goods and passengers will be unloaded and transferred to “Roadcom” transport vehicles, which will control the delivery of services over the last mile.
8) Roadcom delivery vehicles will be of a Hiace or Transit type vehicle, as larger vehicles would not be suitable for the last mile road. Again, this will mean more per minute usage of the road infrastructure, but will maximise usage of the existing road network without requiring additional investment by Roadcom.
9) The DOT has specified however, with regards to point 8, a minimum functional delivery vehicle to be no smaller than a Toyota Hiace. However, the DOT has said that this functionality does not mean that the vehicles have to be loaded. The fact that the vehicles are in use is sufficient!!!

The proposals have come in for some criticism however from industry experts.

Some have predicted scenarios where Roadcom will not invest in upgrading or maintaining the infrastructure, and having sole control over same, will stifle competition limit usage and innovation.. For example one expert said “I can see the necessity of the GOV having to construct the M49 adjacent to Roadcoms M50!!!, we may even have to have local schemes similar to Group Water schemes, where local communities club together to build and maintain their own roads, lets call it a Group Road Scheme!!!,

A spokesman for the DOT, commented that such predictions were preposterous, and that such a scenario could never arise. However, he hinted that a new regulatory authority would be set up to ensure these types of scenarios would never happen. The new authority, would be set up before the privatisation, and would be called OFFROAD (Office for Fair Roads!!!)

OFFROAD Powers

Offroad’s powers and functions would include:-

1) Setting and regulating monthly rental limits and authorising increases etc
2) Defining and setting functional delivery vehicles as mentioned in point 8 above.
3) Monitoring and vetting new entrants to the market (for example ensuring that if a new estate pops up in a town, with its own driveway, that they do not abuse there dominate position in the local area where they will have Significant Market Power).

To be continued:D