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Private investors 'will receive incentives to fund infrastructure projects'
Thu 07 Jan 2010
The government has said it may start to offer incentives to private sector investors to fund future infrastructure projects.
According to business secretary Lord Mandelson, the public purse will no longer be able to fund high-cost, long-term investments.
Therefore, he has said the government will look at creating the right conditions to attract investment from private organisations.
Lord Mandelson also noted that many previous infrastructure developments have failed to create opportunities for British-based industry.
He insisted that this must not be the case when future projects get underway.
The business secretary added that the government is already developing strategies on various transport-related initiatives, such as rail electrification and building the charging infrastructure for electric cars.
Lord Mandelson said these are clear frameworks of policy within with private organisations can take commercial decisions.
The comments came shortly after he and prime minister Gordon Brown visited London Gateway's port construction site, a £1.5 billion development in Essex.