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Old 24th Oct 2007, 10:41
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BEXIL160
 
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but in the present economical climate they don't need the few bucks to fill some gaps, since the taxes provide enough income in the moment
.

Which was part of the reason NATS was, effectively, Privatised.

Labour, with Gordon Brown as Chancellor, had pledged to stick to the previous Governements spending Plan. That included some £650m from the sale of NATS. Note, nothing to do with investment or better services, all to do with Political expediency.

CAA/NATS did require investment at the time. Loans were available from non state sources (banks, pensions schemes stc) but the Government would have been requied to guarantee the loan. That would have the effect of counting against the PSBR. They were unwilling to do this.

There was a simple solution, used by the treasury to fund what was the Atomic Energy Authority, and that was to rewrite the rules so that "special infrastructure lending" did not count against PSBR

The Government chose not to persue this, claiming that CAA/ NATS had to be privatised (or PPPed), while all along knowing that they needed the cash from the sale of NATS.

Politicians? Never Trust ANY of them.

BEX
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