<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=us-ascii"> <META content="MSHTML 6.00.2900.2912"></HEAD> <BODY> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006>I'm doing a bit of digging on this for a current job.  See for example this quote - </SPAN></FONT></DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006>"The Chief Minister has rejected the proposal for reducing any taxes for [Bus Undertaking] as if it is allowed to [Bus Undertaking] then it has to be allowed to all the city transport undertakings in [State], which will result in loss of revenue to the Government." </SPAN></FONT></DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006></SPAN></FONT> </DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006>In the developed world, it is generally accepted that buses and other public transport are worthy of financial support by reduced tax burdens, subsidies or both (even in post-Thatcherite Britain!).  These may be user subsidies (e.g. payments to carry older people at reduced fares), or direct subsidies by negotiation, tender or franchise (or by blanket subsidy to a state-owned operator), or relief from, e.g., fuel tax.</SPAN></FONT></DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006></SPAN></FONT> </DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006>This logic seems much less accepted in developing countries, for a variety of reasons that I can think of.</SPAN></FONT></DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006></SPAN></FONT> </DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006>1.  Lack of funds</SPAN></FONT></DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006></SPAN></FONT> </DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006>2.  Higher PT demand, thus less financial need for support</SPAN></FONT></DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006></SPAN></FONT> </DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006>3.  Less acute road congestion, so less environmental need for support.</SPAN></FONT></DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006></SPAN></FONT> </DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006>4.  Resistance on the part of treasuries and/or World Bank etc. to the idea of revenue (rather than capital) support.</SPAN></FONT></DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006></SPAN></FONT> </DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006>Yet financial support for PT services would often offer better value, economically and/or environmentally (let alone socially), than the major capital road projects that still seem to go ahead in many developing countries.</SPAN></FONT></DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006></SPAN></FONT> </DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006>Any comments on this?  Are there developing countries that disprove my assumptions?  Could it sometimes be the case that funding for capital programmes can be got from WB etc, while revenue support has to come from domestic sources - therefore the roads get built and the buses go unsupported?</SPAN></FONT></DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006></SPAN></FONT> </DIV> <DIV><FONT face=Arial size=2><SPAN class=828242909-30062006>Alan</SPAN></FONT></DIV> <DIV><FONT face=Arial size=2></FONT> </DIV> <DIV align=left><SPAN><FONT face=Arial size=2>--<BR>Alan Howes<BR>Associate Transport Planner<BR>Colin Buchanan</FONT></SPAN> <BR><SPAN><FONT face=Arial size=2>4 St Colme Street<BR>Edinburgh      EH3 6AA<BR>Scotland<BR>email:  </FONT></SPAN><A title=mailto:alan.howes@cbuchanan.co.uk href="mailto:alan.howes@cbuchanan.co.uk"><SPAN><U><FONT face=Arial color=#0000ff size=2>alan.howes@cbuchanan.co.uk</FONT></U></SPAN></A><SPAN><BR><FONT face=Arial size=2>tel:      (0)131 226 4693 (switchboard)<BR>           (0)7952 464335  (mobile)<BR>fax:     (0)131 220 0232<BR>www: <A>http:/www.cbuchanan.co.uk/</A><BR></FONT></SPAN></DIV> <DIV><FONT face=Arial size=2></FONT> </DIV></BODY><FONT face=Tahoma><FONT color=#0000ff> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><FONT face=Arial color=#000000 size=2>............................................................................................................................................................................................</FONT></P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><FONT face=Arial color=#000000 size=2>DISCLAIMER</FONT></P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><FONT face=Arial color=#000000 size=2></FONT> </P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><FONT face=Arial color=#000000 size=2>This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to which they are addressed. Unless you are the named addressee, or authorised to receive it for the addressee, you may not copy or use it, or disclose it to anyone else. If you have received this email in error please contact the sender by replying to this email.</FONT></P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p><FONT face=Arial color=#000000 size=2> </FONT></o:p></P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><FONT face=Arial color=#000000 size=2>Any views expressed by an individual within this email which do not constitute or record professional advice relating to the business of Colin Buchanan, do not necessarily reflect the views of the company. Any professional advice or opinion contained within this email is subject to our terms and conditions of business.</FONT></P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><o:p><FONT face=Arial color=#000000 size=2> </FONT></o:p></P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><FONT face=Arial color=#000000 size=2>We have taken precautions to minimise the risk of transmitting software viruses. We do not accept liability for any loss or damage caused by software viruses.</FONT></P> <P align=center></FONT></FONT> </P></HTML>