Jozhua
Established Member
- Joined
- 6 Jan 2019
- Messages
- 1,891
Opex versus Capex is an important distinction we should make!I think that we all need to accept the fact that the Government spending over the period of this Covid-19 pandemic has now reached accumulated levels that even the Labour Party in their usual "We would have spent far more than that" riposte to anything whatsoever the Conservative government may have said they were preparing to spend on any type of project, just wondering how much the furlough scheme had cost so far as just one example.
Of course, on this website, we all have transport-blinkered eyes and kneel before the Golden Calf of Railways, but in the real financial world, the NHS will always remain the number one priority, with transport lagging quite some way down the "financial league table". What transport visions may well have been on the proverbial table prior to the Covid-19 pandemic now have to be subjugated to the financial situation currently applying.
Having £100K in credit card debt is much worse than having a £100K mortgage. I think we can justify investment in infrastructure if it begets productivity.
We are seeing significant supply chain stress due to the UK's labour intensive logistics system - companies that started using rail freight for climate reasons have found themselves with markedly lower levels of disruption during the shortages (e.g. Tesco). Providing the projects provide medium/long term net positive economic benefit, there is absolutely no financial reason to not build them. The UK's infrastructure lags behind our European peers significantly and this is one of the key reasons Brexit has been so disruptive.