Differences
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| stewards_of_the_21st_century:about_funding [2022/03/17 10:25] – created ruth | stewards_of_the_21st_century:about_funding [2022/03/17 10:26] (current) – ruth |
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| And any new asset system we build… will need maintaining, and eventually replacing, too. Every growth asset gives us future liabilities, costs someone will have to pay for sooner rather than later. | And any new asset system we build… will need maintaining, and eventually replacing, too. Every growth asset gives us future liabilities, costs someone will have to pay for sooner rather than later. |
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| Price determination or rate assessment for privately owned infrastructure companies at least now usually considers necessary capital replacement or major refurbishment. But it still incentivises capital (essentially repaid through rates or prices) and downgrades on-going pro-active maintenance, which can be much more-cost effective for the communities the infrastructure serves. Good practice maintenance is still too often seen as a burden on the P&L, rather than a value. | Price determination or rate assessment for privately owned infrastructure companies at least now usually considers necessary capital replacement or major refurbishment. But it still incentivises capital (essentially repaid through rates or prices) and downgrades on-going pro-active maintenance, which can be much more-cost effective for the communities the infrastructure serves. Good practice maintenance is still too often seen as a burden on the Profit and Loss account, rather than a value. |
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| Funding capital can easily distort our perspectives, to look at one-off costs instead of on-going requirements. | Funding capital can easily distort our perspectives, to look at one-off costs instead of on-going requirements. |
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| And if nobody wants to pay for maintenance, we end up with major backlogs in the state of good repair of our essential infrastructure. Public agencies are squeezed on operating budgets, and private companies don’t see a return from maintenance. It is our communities that suffer the consequences. | And if nobody wants to pay for maintenance, we end up with major backlogs in the state of good repair of our essential infrastructure. Public agencies are squeezed on operating budgets, and private companies don’t see a return from maintenance. |
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| | It is our communities that suffer the consequences. |
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