This is nonsense – of course there’s a market for the debt to finance new trains

Posted on

Intercity trains upgrade postponed | UK news | guardian.co.uk .

It's claimed that:

A £7.5bn contract to replace Britain's ageing intercity train fleet has been postponed after the government blamed the state of the debt markets and slow growth in passenger numbers for creating uncertainty over the deal.

This makes no sense at all. We will run trains in the UK for the next thirty plus years. These are assets with a life at least that long. They can be used as security. They will generate an income stream. the demand for high quality asset backed securities with an identifiable income stream is large. We need to build these trains - preferably in the UK, of course.

Can no one in government see the logic of the Green New Deal (see right hand column)? This is exactly the sort of project, if UK based, that we need now to revitalise the UK.