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RE: [WorldTransport Forum] `How to pay for public transport'' - G avin R. Putland, BE PhD. Co mmunications Officer, Prosper Australia

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  • Guenter.HOERMANDINGER@cec.eu.int
    Apologies if this argument has been made before. There is one observation in this article which I think reveals a weakness in the concept of land tax: Another
    Message 1 of 2 , Feb 13, 2004
      Apologies if this argument has been made before.

      There is one observation in this article which I think reveals a weakness in
      the concept of land tax:

      "Another landowner who cannot realize an increase in A (e.g. a residential
      owner-occupant) does not have any additional cash flow to cover the
      increased LVT, but can avoid the increase in LVT and pocket the increase in
      V by selling out and moving to another location"

      In other words, a land value tax that captures the increase in land value
      due to a new public transport line will generate a repulsive force around
      that line. It will thus act to change the type of land use in the vicinity
      of that line. It will stimulate commercial activity that can produce a cash
      flow to cover the increase in value, and discourage owner-occupiers as
      observed above. They will move away, which has the perverse effect that the
      public transport development pushes away the very people it is supposed to
      serve. These people are likely to move somewhere with a worse public
      transport connection, so they will have to (continue to) use the car for
      their transport needs.

      If the objective is to finance public transport, then the land value tax
      seems to be an instrument. But why do we want to develop public transport
      in the first place? There appear to be two motivations. The first is
      social policy: you want to be able to offer transport services to those
      unable or unwilling to buy or use a car. A land tax will increase rents
      near the public transport infrastructure, which hits those on low incomes
      hardest. They will have to move out and find themselves again without
      adequate transport supply, which counteracts the social policy objective.
      The second motivation comes from transport policy: the desire to reduce car
      traffic and sprawl in towns. As described earlier, some car traffic may
      actually be generated by persuading people to move away.

      Has this repulsion effect been investigated? It seems to be dismissed a bit
      too easily.

      Günter Hörmandinger
      European Commission, Environment Directorate-General, Unit C.1: Air,
      Noise and Transport
      Tel +32 2 299 5882; Fax +32 2 296 9554; E-mail

      -----Original Message-----
      From: Wetzel Dave [mailto:davewetzel@...]
      Sent: Monday, February 09, 2004 4:35 PM
      To: 'Glenn Lyons'
      Cc: 'Gavin Putland (Aus)'; Kiley Bob; Walder Jay; Broe Barry; Amenta Tom
      Subject: [WorldTransport Forum] `How to pay for public transport'' - Gavin
      R. Putland, BE PhD. Co mmunications Officer, Prosper Australia

      Many thanks for sending me Gavin's paper "How to Pay for Public Transport"
      on Transport and Land Value tax:


      and the Local transport Today article on your Transport Planning Society
      meeting at which I spoke:

      http://www.tps.org.uk/news/ltt_010503.htm ,

      which I am circulating by Bcc to many people.

      It is especially encouraging that such a thoughtful academic paper as
      Gavin's has arrived from Australia
      when these issues are being discussed here in the UK.


      Dave Wetzel

      -----Original Message-----
      From: Glenn Lyons [mailto:Glenn.Lyons@...]
      Sent: 07 February 2004 10:52
      To: G.R. Putland
      Cc: Wetzel Dave
      Subject: Re: ``How to pay for public transport''

      Dear Gavin,
      Many thanks for bringing this to my attention. By copy of this email I am
      alerting Dave Wetzel to this. Dave is the leading light in terms of the
      campaign for land value taxation in the UK and I suspect will read your
      essay with great interest.


      Professor Glenn Lyons, Director, Centre for Transport & Society,
      Faculty of the Built Environment, University of the West of England,

      At 01:38 29/01/2004, you wrote:

      Dear Sir,

      In response to the column at
      http://www.tps.org.uk/news/ltt_010503.htm ,

      I draw your attention to my essay on public transport funding at
      http://www.users.bigpond.com/putland/pubtrans.htm . The
      essay has a summary and a table of contents.

      Note: The address of the essay may change; so if it is of
      interest, you would do well to save a copy of it.

      Kind regards,

      Gavin R. Putland, BE PhD
      Communications Officer, Prosper Australia

      Home address:
      43 Azalea Crescent
      Calamvale, Q 4116, AUSTRALIA
      Tel. + 61 7 3272 5984
      Email grp@...

      National office:
      Prosper Australia
      1st Floor, 27 Hardware Lane
      Melbourne VIC 3000, AUSTRALIA

      Professor Glenn Lyons
      Centre for Transport & Society
      Faculty of the Built Environment
      University of the West of England
      Frenchay Campus
      Coldharbour Lane
      BRISTOL BS16 1QY
      Tel 0117 32 83219
      Mobile 07748 768404
      Fax 0117 32 83899
      Email Glenn.Lyons@...
      Web www.transport.uwe.ac.uk

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    • Eric Britton (EcoPlan, Paris)
      Further to the dialog on this of which the last interesting points I have in front of me were made by Günter Hörmandinger of the European Commission: This
      Message 2 of 2 , Feb 17, 2004

        Further to the dialog on this of which the last interesting points I have in front of me were made by Günter Hörmandinger of the European Commission:  This is one of those (many) cases in which we see that matters of transport and mobility are too important to be left to the transport generals.


        There are two full generations of experience behind us in cities and peoples’ heads on these matters, with enough now available on the topic that we can at least spot where not to put our big transport feet.  Certainly, as by Günter points out, we need to be very sure that when we begin to ‘capture value’ from public investments in the transport system, we also are aware of these perverse effects in terms of social justice and make provision for them. Now this ain’t so hard, but it does of course get us beyond the usual pure transport mandate.  But what the hell, it’s always good to get to knew and work with our neighbors in the other policy and practice areas. All of which together make up the fabric of our real world lives and our real world cities.


        Examples of how to do this abound, and I am sure that we shall be hearing about them.




        Eric Britton



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