Another message from political Lala land: High speed rail and “value capture”

Liberal MP John Alexander has made a transmission from political Lala land in his support for a fast train link between Melbourne and Sydney.

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 John Alexander: clearly a better tennis player than a transport economist

Connecting regional centres like Goldman to Sydney will treble the price of property in Goulburn and Shepparton.

Alexander was quoted as saying:”You will push up prices enormously around Goulburn, people will be delighted,” he said, from around $200,000 to $600,000.

What Alexander does not realise is the only people  who will be delighted are the people who are selling in those areas. First-time home buyers who have to purchase in one of these areas will not be happy about paying three times the price they previously had to pay.

But the real zinger in this plan is the idea of “value capture.” This means that the government will capture all, or some, of the increased value of the land through some kind of sales tax. That’s not going to delight anybody.

We’ve got a long way to go before the general election and, if the ideas get any stupider than this, political Lala land will need an immediate connection to the NBN.

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