In the prior blog entry,
Vincent had just explained his PhD thesis will put forward the concept that sustainable
development should be constitutionalized here in Ireland.
Question: What would
sustainable development accomplish?
There would be a
constitutional implementation of social rights, economic rights, and
environmental rights. Hopefully, that constitutional equation would prevent
these types of things from happening again.
You and I had worked on the
economic issues having to do with the toll roads on the M3 (I had contributed
some economic analyses which showed the questions the government should have
asked about the deal before it was struck). Maybe in hind sight the economic
issues were a lot more important than people realized in the course of the
campaigning where everybody was so focused on the heritage end of things that the
economic issues didn’t lend themselves so easily to protesting and people
getting excited. There were no grounds to go in and make economic complaints
back then. People need to be given their economic rights to say that public
money needs to be spent in a rational way.
I am trying to pull
everything together that I’ve been involved in over the last ten years or so.
It is really a formula and I am trying to get it into a few articles or a book.
Question: Is there a
recognition among politicians and other decision makers that the economics of a
road should be a factor? Should the government shoulder all the risk? Ireland
is paying foreign investors for a road, the M3, that is underutilized.
On the M3, they didn’t tell
the public if it was going to be a toll road. They said it could be a toll
road. They got the contract in the public/private partnership to build the
road. However, one of the complaints was made that the traffic numbers didn’t
add up, they didn’t justify this road in the first place. With all these
motorways going north, it was pretty clear that was correct. They realized it
would be a looser for any company getting involved, and they wouldn’t be able
to charge enough tolls to make it pay for itself. So what the government did
without telling anyone was they went out to the EU and got special permission
from the European Commission to allow them to sign a shadow tolling clause into
the contract. Normally they wouldn’t be able to do that, because it would be
seen as impermissible state aid under the European Union economic rules.
They were given permission
to do this in the instance of the M3. Also the Liber Tunnel was the only other
road they got permission to do this. They said this road was so necessary there
was no alternative to building this road. They said they probably wouldn’t need
the tolls anyway because things were growing at such a rapid rate here in
Ireland, there would be enough traffic to support the road. They created the
impression this shadow toll clause would never be used.
No sooner had they signed
that contract than things started to fall apart in the economic realm. Now it’s
seen to be one of the worst economic decisions ever. Going all the way back to
2000, the roads program in Ireland was supposed to cost 5 billion euros. We
can’t get an exact figure from the government as to how much the roads cost,
but we figure they have cost somewhere in the region of 30 to 35 billion. So
you see how much money disappeared into the ether. Now we can see a lot of these roads weren’t
necessary at all.
It’s gone from one extreme
to the other. Back then, they were building roads everywhere, and now, there is
no road building at all. There isn’t much sense in asking the present
government what they think of building roads, they haven’t had much opportunity
to think about that. Of course, with the troika breathing down their necks,
they are not going to be making any radical decisions. The biggest decision was
seen to be the withdrawal of the 500 million from the northern end of the M2/A5
road, the Dublin to Derry road. It’s going to be a while before they propose to
build new roads. They don’t really need many.
Even though they were supposed to get these new roads done by 2005, they
did manage to get most of them by 2008 or 2009.
That is really the end of
road building for the time being, and ironically, that also is the end of a lot
of archaeology jobs as well.
No comments:
Post a Comment