Radical plan to privatise motorway network which could pave the way for toll system
By Daily Mail Reporter
Last updated at 4:39 PM on 23rd May 2010
The battered public finances could be boosted by a radical plan to raise £100billion by privatising Britain's motorway network.
Business Secretary Vince Cable has signalled that he is open to the idea, which would dwarf the rail privatisations of the 1990s.
Mr Cable said he had 'no ideological opposition' to major asset sales, which could also see Channel 4 and the Met Office disposed of to raise cash.
Last year, Gordon Brown began the process of a fresh round of privatisations, announcing asset sales of £16billion, including the Tote, the Dartford Crossing and the student loan book.
Under the privatised road scheme, toll companies and infrastructure funds would compete to operate and maintain stretches of the road network currently in the hands of the Highways Agency
Business Secretary Vince Cable has signalled that he is open to the idea, which would dwarf the rail privatisations of the 1990s
Under the privatised road scheme, toll companies and infrastructure funds would compete to operate and maintain stretches of the road network currently in the hands of the Highways Agency.
They would take them over on behalf of the government under long-term contracts.
Motorists would not pay tolls to use existing roads that are privatised. Instead the government would be committed to paying the contractor based on a formula linked to the number of vehicles using the route.
The scheme would be similar to the private finance initiative schemes used to build schools and hospitals and the rail infrastructure.
The RAC Foundation, a motorists' group, has advocated privatisation.
Details proposals for the sell-off were drawn up before the election by NM Rothschild, the influential investment bank, which was the architect of several previous privatisations, and handed to all three main political parties.
Mr Cable, speaking about the Rothschild plan, said: 'I thought the principle was right. I think the principle in that report, which is using assets more creatively, is something we have to look at across government.
'There is no ideological opposition to asset sales. If we can get good value for money for something, then we will look at it. There is undoubtedly potential for releasing an income stream from government assets. There are no inhibitions; we want value for money and we want income.'
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