Transwatch “Fact Sheet” No. 4 – Subsidies & Taxes

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Claims of profits made from road traffic are based on a superficial comparison of taxes and expenditure on roads.

Ø       VAT must be ignored, as railways pay it on materials & services purchased.

Ø       It ignores that new roads & improvements are justified by the monetary value of time forecast to be saved by users and by reductions of accidents. These savings are ongoing.

Ø       Accident & emergency costs are under-estimated as hospital admissions are higher than those reported by Police (see Juggernauts by John Wardroper).

Ø       Subsidies to BR were paid to hold down costs of industry to enable it to compete with foreign industry, and to retain uneconomic lines as bad weather standbys.

Ø       Lower fares held down the cost of users, including government employees, thereby enabling government to profit from lower wage costs.

‘Fact Sheet 4’ is worthless