22 April, 2011

Streetcar : the local politicians, left and right, must face up the financial facts

"Is the streetcar responsible of a tax?", questionned a local media in its copy published on thursday 21st April. If in the article, the media give detais about the drift of the costs of the first line, the question seems to mean that the street car project fell from the sky without any political intervention. The correct question would be : "a new tax, is the Angers Loire Métropole responsible of it?". And the answer is, without any doubt : yes.

In its actual configuration, the increase of the cost rise is 21% (from 238 to 288 millions €). In order to finance that overcost, Angers Loire Métropole decided to increase the transportation tax, paid by private companies and to increase the business tax (but that decision was cancelled by the administrative court). But that was not sufficient, Angers Loire Métrople had to borrow 25 millions € more than it had foreseen (200 instead of 175 millions €). In order to be able to pay off its debt, the only way the local authority has is a new tax paid by the households, yet over taxed.

The local politicians from left or right, had to face up yesterday to the unavoidable consequence of their choice. Let us hope they will remind it for a while. The second line is postponed till 2020. Not the tax increase...

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