The Proposed Privatisation of Queensland Motorways

Ross Guest ()

Economic Papers, 2010, vol. 29, issue 1, 23-33

Abstract: This article evaluates the proposed sale of the tolling rights on Queensland Motorways from an economic welfare perspective. Weighing against the sale are arguments about optimal risk allocation and network externalities. In contrast, there is a productive efficiency case in favour of the sale. Privatisation also raises questions about private monopoly power and the delivery of community service obligations, although these could be handled through contract specifications. The sale price is essentially a distributional issue. The back‐of‐the‐envelope financial analysis here suggests that the mooted sale price of $3 billion would undervalue the asset and therefore transfer net worth from Queensland taxpayers to private investors.

Date: 2010
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https://doi.org/10.1111/j.1759-3441.2010.00055.x

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