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Green light for new rail line |
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The Scottish Parliament has endorsed plans to reopen the Waverley rail line in the Borders.
The Committee responsible for scrutinising the Private Bill enabling the development published its preliminary report today. The new link will connect the desirable Scottish borders area to the economic and housing hotspot of Edinburgh. The present public transport journey time, by bus, is two and a half hours. The train will cut that to under an hour.
The project sponsors have understood that opening the new rail line will greatly enhance local land values. As part of its funding package, the Bill contains provisions allowing the promoter to levy contributions from local developers for up to 30 years into the future. This power is over and above the local authority's ability to force '«section 75' planning gain agreements on development.
There is a principle behind this approach to project funding '± but the actual plans pervert it.
The new financial powers will tend to stifle the project's likely success. The effect might not be noticeable in a rising housing market. But problems will become apparent if the housing market enters recession, which some predict it will do - stalling by 2007 and entering full recession by 2010 . In that situation, project income from such sources will dry up. And, fatally, the project will become a drag on local development. The project hopes to be operational by 2008.
While the project will penalise new development in the borders, existing property owners will find their house values bolstered by the development. Land&Liberty has reported early signs of this already happening.
While new development in the borders will be penalised by the new Waverley rail link, sitting householders will enjoy a windfall gift in rising property values courtesy of, in particular, their incoming neighbours, and, in general, the generosity of the Scottish taxpayer.
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