Tunnel Vision

The Story……

 

The Government has unveiled its infrastructure spending plan for the next two decades, describing it as "a blueprint for Britain". About £375bn of investment in energy, transport, communications and water projects is planned.

 

At a time of austerity, the big question is……how will this be funded?

 

 

The Intrigue……

 

The National Infrastructure Plan (NIP) includes Private Sector investment as well as the Government selling some of its assets, including…….the Government selling off its 40% stake in the Eurostar rail service.

 

 

The Concern……

 

Eurostar has doubled its profit this year and has a massive expansion plan through additional European destinations. It’s pretty fair to state that the value of the shareholding will increase dramatically over the next 2 – 3 years in line with increasing turnover and profit.

 

So why sell now? Why sell an increasingly valuable asset to fund a project in 10 – 15 years (and beyond)?

 

Here is the key problem……you have people working for non-profit making organisations (AKA Politicians) making business investment decisions in a profit making environment. 2 + 2 = 3.

 

Have we not learnt anything from the farcical undervalued sale of Royal Mail?