The Regional Effects of Experience with the Private Finance of Transport Infrastructure: Some Evidence from the UK

Private finance of transport infrastructure, either through direct private provision or through public-private partnerships has developed rather further in the UK than in most European countries over the past two decades. It is appropriate to consider what lessons can be drawn from this experience. In particular, does the emphasis on private finance lead to a bias in the spatial allocation of investment and what are the consequences of this. The paper discusses a theoretical framework which identifies the importance of the contractual structure for private finance. This shows how in the presence of asymmetric information it is difficult to achieve the expected shifting of risks to the private sector. Given the complexity of such contractual structures, although transactions costs become more transparent, they may also be expected to be higher than in a vertically integrated public sector provider. The benefits may thus depend on the private sector being able to manage the process of investment and introduction into service more efficiently than traditional public sector transport providers. This paper reviews the UK experience in terms of developments of the national air, rail and road networks and local public transport (especially light rail systems). The paper highlights the variety of methods of introducing private finance and assesses these against the criteria of risk bearing, transaction cost reduction, and efficiency in delivery. The key problems are identified as relating to the treatment of network effects and the vertical separation of infrastructure and service (unbundling). The framework is then used to assess the extent to which private sector provision impacts on regional development either positively, by advancing the provision of infrastructure which can provide wider benefits, or negatively by becoming a drag on future development by imposing higher costs of infrastructure usage and maintenance. It becomes clear that a distinction needs to be drawn between infrastructure which is mainly used for intra-regional transport and that which has an inter-regional or international dimension.

Sustainable mobility in Europe: Problems in defining and implementing an operational measure

Transport policy in Europe, both at the European Union level and the national level, has been dominated by the concept of sustainable mobility. This concept is rarely adequately defined, and even more rarely is an operational measure of the concept identified. We know that sustainable mobility is an attempt to relate both the environmental damage and other negative externalities associated with transport, on the one hand, and the positive benefits linked to the role played by an efficient transport system in sustaining and enhancing a given level of activity and its growth in the economy as a whole, on the other hand, to the mobility of both individuals and goods. Sustainability in any system implies that the system is capable of maintaining itself in the long term so that current levels of activity do not damage future prospects. These concepts are well known and broadly accepted, what has proved more difficult is the definition of operational measures in the context of a fully worked through model linking transport, the economy and the environment. This paper attempts to provide such a framework. It argues that sustainability can only be understood in a model which is explicitly spatial, since the distribution of economic activity and of the externalities associated with transport are a key element in the definition of sustainability. The paper provides a framework which synthesises recent work in the new economic geography, in the economics of transport infrastructure and the environmental effects of transport as the basis for a definition of a set of indicators which can be used as tests of the sustainability of transport policy measures.

Economic issues in a community immigration policy: the regional dimension

In November 2000 the European Commission published its communication "On a Community Immigration Policy". The Commission's Document identifies clearly the changing pressures which have affected the need for a reappraisal of immigration policy. First, the advent of the single market with free movement of labour within the EU requires a common approach to immigration over the EU's external borders. Secondly, the gradual transition from an era of high unemployment into one of tighter labour markets, coupled with demographic change, has been revealing increasing problems of labour market bottlenecks, especially in respect of certain specific skills, requiring more than a national-based competitive bidding for selected immigrants. Thirdly, there has been an increase in asylum-seeking and illegal migration. The particular pressure for a review of EU policy on immigration has come from the situation in Central and Eastern Europe over the past decade, in particular how to accommodate the accession of the first waves of candidate countries into a unified single labour market and how to regulate the anticipated continuing pressure for migration from those countries in the region remaining outside the EU. The enormous increase in migration activity in the early 1990s, following a long period of stable or falling migration pressure since the 1950s and early 1960s, demonstrated both types of migration, genuine pressures for workers to migrate from poor regions to rich regions as part of an increasing integration of the European economy and large flows of population resulting from war and ethnic conflict. Although it is easy to demonstrate that the overall pressure of immigration to the EU is not likely to be great, there is the problem that such immigration is highly regionally concentrated and this has implications both for the policy as a whole and for regional development within the EU. This paper assess the regional impacts of migration in the context of a model of migration which stresses the limited duration of much migrant activity. It highlights the importance of short-term migration in terms of remittances and productivity gain, but identifies the importance of improving information to reduce the asymmetry which lead to mismatch and hence to reduced welfare in both sending and receiving regions. Particular evidence is drawn from data on migration from Poland, Albania and Bulgaria. The paper concludes that Immigration Policy needs to address mechanisms for identifying migrant flows and preparing for their easy absorption. Rather than trying to set aggregate quotas or optimal transition periods to free movement; this may be most efficiently achieved through use of voucher or auction systems.

Conflicts between transport policies and spatial development policies: perspectives on regional cohesion in the European Union

The development of the Trans-European Networks (TENs) in the EU is one of the first attempts at achieving a top-down approach to the development of a genuine European network in the interests of greater competitiveness and cohesion in the European economy. This implies the need for consistency with both national transport policies and with other EU policies, such as those on the environment, regional development and stability and growth. This paper explores the interaction between these policy areas to assess the extent of horizontal co-ordination between different sectoral policies and vertical co-ordination between different policy levels. The analysis of horizontal co-ordination has three main elements: the identification of horizontal spillovers between policy areas; the analysis of how policy responds to the evidence of horizontal spillovers; and the organisational structures put in place to implement policy. A key to this is the distinction between identifying spillovers between policy areas or establishing co-ordination between them as an aim of policy and the implementation of detailed policy objectives and measures to address such matters. This is achieved by examining the extent to which spillovers are recognised in key policy documents and the way this has shaped the policy design and its implementation. As well as the horizontal links between different EU policy areas, the analysis of vertical co-ordination involves enquiring into the relationships between different levels of government and decision making. This addresses the question as to how higher levels of government establish a policy environment within which lower levels operate. This has three main dimensions: the way in which policy is framed to establish the goals which need to be addressed by the lower levels of decision making (top-down policy formation); the extent to which the formation of policy by higher level bodies is informed by and takes cognisance of the views and needs of lower level bodies (bottom-up policy formation); and the way in which high levels of government monitor and police decisions by lower level bodies. The paper provides a schematic framework for analysing policy interaction developed from research as part of the ESPON programme of the EU which identifies opportunities for greater coherence and the risks of conflict. The paper suggests that ignoring these conflicts places the opportunity for further cohesion in regional development in the EU at risk.

Transport in an Integrating Europe: Sustainable Development and Cohesion

The process of European integration, and particularly the enlargement of the EU, has substantial consequences for transport. Transport, and particularly freight transport, has recently been growing faster than GDP. Thus, despite the increasing concerns about the environmental impact of transport and increasing attempts to regulate transport through a more sensitive price mechanism in many countries, what may be termed the transport intensity of the economy has been increasing. This is not just about the impact on traffic levels, but affects the whole relationship between transport and the economy. Changing transport costs impact differentially on different sectors and different regions according not just to the traditional measures of value to weight ratios, but also according to the competitive structure of an industry in a particular location. Increasing transport intensity could be considered a surprising outcome in the first instance. Generally the mass of goods has been falling and the growth of electronic communication could be seen as a substitute for much physical transport. Both of these factors would imply a falling transport content of most production. However, the falling cost of transport may lead to the substitution of transport for other more expensive factors of production. Individuals' preferences for variety see them using cheaper transport as a means of widening access to more destinations. At the same time rising incomes lead to a preference for a greater variety of goods. Given the importance of scale economies in manufacturing production, this implies the need to source these goods from a greater variety of locations, hence the growth of intra-industry trade. Technical advances in transport have reduced transport costs substantially, but in a world of increasing returns firms need to exploit differences in input costs in different locations. The removal of the transport cost constraint on integration may thus lead to an increase in spatial specialisation and concentration which itself induces an increased demand for transport. Understanding these relationships between transport and the economy is critical to achieving a more sustainable European transport system, and to the process of cohesion in the European economy, Attempts to curb transport growth which do not also consider the impact on the structure of production and markets may produce a less sustainable system. On the other hand, moves to ensure the correct pricing of transport services are an essential input to efficient decision making about the optimal location for production and the optimal allocation of resources between different products and services. In this paper we explore some of the dynamics of this system, highlighting the way in which the modelling of the transport system needs to interact with that of the rest of the economy.

Cross-border activity in the Kent - Nord-Pas de Calais - Belgium Euroregion: some comparative evidence on the location and recruitment decisions of internationally mobile firms

Border regions and the implications for their development have become a subject of considerable interest in the ongoing process of European integration. The removal of national barriers and the development of greater economic and political transborder co-operation has led to a reconsideration of spatial identity and the definition of regional economies or markets. Much of the interest has focussed on the implications for labour mobility, especially within the context of the perceived need for greater mobility to provide the necessary adjustment process within the Eurozone. However, not only has international labour migration remained quite low within the EU, so has the level of cross-border commuting. There has, however, been considerable interest in the growth of cross-border capital flows. In this paper we explore the nature of this cross-border movement of firms in the context of the Kent - Nord-Pas de Calais - Belgium Euroregion. This transnational region is a large region of over 15 million people, close to a number of national borders. The original focus was the Transmanche region between Kent and Nord-Pas de Calais, established in relation to the construction of the Channel Tunnel in1987 in order to identify common problems, minimise the competition for the same resources between the regions and emphasise complementarity in their economic structures. The region was later extended to include the three Belgian regions in 1991 when it was renamed the Euroregion, and there have been suggestions that it should extend even more widely to include most or all of the Central Capitals Region of the EU. This paper brings together some findings from a survey of French firms which have located in Kent and a parallel survey of Belgian firms which have located in the Dunkerque employment area of Nord-Pas de Calais (Boutillier et al, 2001). In this analysis we seek to discover whether the same general set of principles govern cross-border movements, or whether there are individual circumstances in each region to which specific types of firm respond. Despite similarities, it is difficult to conclude that there is a consistent pattern of cross-border investment activity. As with all investment activity, cross-border investment seeks to exploit differentials which exist and opportunities which arise; these are different in different cases. Belgian activity in the Dunkerque region is responding to clear advantages which are offered through location in an area where incentives are strong and where there are specific skills which can be used to advantage. French investment in Kent seems to be responding to wider national opportunities available in the UK, but using a location which has certain advantages of proximity. It would seem unwise to rely on either of these factors as being likely to persist indefinitely. By definition firms which have been willing to move in will also find it relatively easy to move on to other locations, possibly to other regions within the host country. In this sense border regions continue to act as staging posts for mobile factors and thus have to recognise the need for continuing activity to attract new firms and retain existing ones.

Ex post analysis of the regional impacts of major infrastructure: the Channel Tunnel 10 years on.

The regional impact of transport infrastructure investment has achieved considerable attention across Europe in recent years. The construction of major bridges and tunnels to overcome natural barriers and the development of the trans-European networks has led to large volumes of research on the likely economic impacts of such investment on neighbouring regions. Most of these studies are ex ante studies undertaken as part of the decision process into the investment, either on the part of the project promoter or the affected regions. At the same time there has been a continuation of interest in the broader question of the wider economic benefits arising from transport improvements at a more aggregate level; whether and under what circumstances such benefits do arise, and if so how they can be incorporated in any evaluation. As a recent study by Flyvbjerg et al (2003) has shown, the claims made for the returns on major projects have tended to be exaggerated, both in terms of underestimates of likely costs and overestimates of potential direct traffic benefits. This paper provides a relatively rare example of an ex post study of what impacts one of the major recent infrastructure projects has had on the local and regional economy by looking at the experience of the Channel Tunnel after its first ten years of operation. The paper reviews the methodological issues in carrying out an ex post study and assembles evidence related to traffic, labour market, investment and development impacts compared to the ex ante expectations. The main methodological issue is in establishing the counter-factual position of how the regional economy would have developed in the absence of the tunnel. A substantial volume of traffic would have continued to have passed through the region’s ports using the ferries which would have required continuing investment over this period. This has been a period also in which major changes have occurred in the EU economy with the move to completion of a Single Market. Many of the driving forces of the regional economy come from the adjacent London metropolitan region. The approach adopted has been to examine trends in the regional economy relative to those in the wider regional and national economies in both the UK and France. There are two basic questions: to what extent would traffic have continued to grow at the rate experienced in the absence of the tunnel infrastructure; and has tunnel related traffic had a differential impact on the local economy from a similar volume of ferry traffic? The paper examines in detail the volume and structure of traffic and compares these with ex ante traffic forecasts; trends in the local labour markets in terms of the growth of job opportunities, occupational structure and the evolution of unemployment; investment (including foreign investment) in the regional economy; and the development and execution of plans for physical development in the region. The paper concludes that although much has changed in the region following the completion of the tunnel, it is difficult to identify a significant difference in the aggregate performance relative to the wider regional and national experiences. Essentially, the improvement of transport infrastructure has enabled the regions to be more integrated into their wider regions and experience a similar economic performance, but whether this has led to a better performance is more difficult to determine.

New phagotrophic euglenoid species (new genus Decastava; Scytomonas saepesedens; Entosiphon oblongum), Hsp90 introns, and putative euglenoid Hsp90 pre-mRNA insertional editing

We describe three new phagotrophic euglenoid species by light microscopy and 18S rDNA and Hsp90 sequencing: Scytomonas saepesedens; Decastava edaphica; Entosiphon oblongum. We studied Scytomonas and Decastava ultrastructure. Scytomonas saepesedens feeds when sessile with actively beating cilium, and has five pellicular strips with flush joints and Calycimonas-like microtubule-supported cytopharynx. Decastava, sister to Keelungia forming new clade Decastavida on 18S rDNA trees, has 10 broad strips with cusp-like joints, not bifurcate ridges like Ploeotia and Serpenomonas (phylogenetically and cytologically distinct genera), and Serpenomonas-like feeding apparatus (8–9 unreinforced microtubule pairs loop from dorsal jaw support to cytostome). Hsp90 and 18S rDNA trees group Scytomonas with Petalomonas and show Entosiphon as the earliest euglenoid branch. Basal euglenoids have rigid longitudinal strips; derived clade Spirocuta has spiral often slideable strips. Decastava Hsp90 genes have introns. Decastava/Entosiphon Hsp90 frameshifts imply insertional RNA editing. Petalomonas is too heterogeneous in pellicle structure for one genus; we retain Scytomonas (sometimes lumped with it) and segregate four former Petalomonas as new genus Biundula with pellicle cross section showing 2–8 smooth undulations and typified by Biundula (=Petalomonas) sphagnophila comb. n. Our taxon-rich site-heterogeneous rDNA trees confirm that Heteronema is excessively heterogeneous; therefore we establish new genus Teloprocta for Heteronema scaphurum

Frequency, factors and costs associated with injection site infections: findings from a national multi-site survey of injecting drug users in England.

BACKGROUND: Injection site infections among injecting drug users (IDUs) have been associated with serious morbidity and health service costs in North America. This study explores the frequency, factors and costs associated with injection site infections among IDUs in England. METHODS: Unlinked-anonymous survey during 2003/05 recruiting IDUs from community settings at seven locations across England. Self-reported injecting practice, symptoms of injection site infections (abscess or open wound) and health service utilisation data were collected using a questionnaire, participants also provided dried blood spot samples (tested for markers blood borne virus infections). Cost estimates were obtained by combining questionnaire data with information from national databases and the scientific literature. RESULTS: 36% of the 1,058 participants reported an injection site infection in the last year. Those reporting an injection site infection were more likely to be female and aged over 24, and to have: injected into legs, groin, and hands in last year; injected on 14 or more days during the last four weeks; cleaned needles/syringes for reuse; injected crack-cocaine; antibodies to hepatitis C; and previously received prescribed substitute drug. Two-thirds of those with an injection site infection reported seeking medical advice; half attended an emergency department and three-quarters of these reported hospital admission. Simple conservative estimates of associated healthcare costs range from pound 15.5 million per year to as high as pound 30 million; though if less conservative unit costs assumptions are made the total may be much higher (pound 47 million). The vast majority of these costs are due to hospital admissions and the uncertainty is due to little data on length of hospital stays. CONCLUSION: Symptoms of injection site infections are common among IDUs in England. The potential costs to the health service are substantial, but these costs need more accurate determination. Better-targeted interventions to support safer injection need to be developed and evaluated. The validity of self-reported symptoms, and the relationship between symptoms, infection severity, and health seeking behaviour require further research

Provision Of Public Transport Under Conflicting Regulatory Regimes

In this paper we develop a simple model of regulatory competition in a multi-agency world. This argues that regulatory competition and potential conflicts arise in a similar way to tax competition between jurisdictions. This is then applied to contrasting situations drawn from metropolitan transport and cross-border rail services in Europe. The analysis demonstrates how regulatory conflicts can lead to inefficiencies which impact not just on the provision of transport services, but also on the potential wider benefits from transport, most notably labour market efficiency and productivity growth. Key Words: Regulatory competition; regulatory conflict; wider economic impacts; asymmetric information.Institute of Transport and Logistics Studies. Faculty of Economics and Business. The University of Sydne