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#1
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TfL rolling stock crisis
On Mon, 8 Jan 2018 13:37:12 +0000, Roland Perry
wrote: In message , at 12:38:11 on Mon, 8 Jan 2018, Recliner remarked: This is a form of off-balance sheet government borrowing. I am long past the need to know but thought that accounting standards had now stopped such sale and leaseback deals escaping the balance sheet. I can't see TfL arguing successfully it's an operating lease. And I think IFRS16 removes even that distinction from next year for plant and machinery so TfL would have to show a “right to use the stock” asset and a "lease" liability on their balance sheet. It would be much cheaper if the Treasury borrowed the money directly. Cheaper for TfL, yes. Whether it's cheaper for the country depends on what the bond markets decide about UK national debt. And people outside London paying increased fares year by year might ask why Londoners who don't should be bailed out. Yes, that does the raise the question of why TfL is still freezing Tube fares when it doesn't have enough budget to renew life-expired fleets. Because the Mayor made it an election commitment. If he goes back on that, he may well not get re-elected, which party politics aside, will very likely cause turbulence costing more than this one-off deal's low interest rates on money to prop up day to day operations; which they can't raise as a free-standing loan because that's not how public financing works. Again, get your facts straight: this is not to prop up day-to-day operation. I know you love speculating without facts, while pretending to know what you're talking about, but you could have at least read the tweet that started this thread. |
#2
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TfL rolling stock crisis
On Mon, 08 Jan 2018 13:50:15 +0000
Recliner wrote: On Mon, 8 Jan 2018 13:37:12 +0000, Roland Perry wrote: In message , at 12:38:11 on Mon, 8 Jan 2018, Recliner remarked: This is a form of off-balance sheet government borrowing. I am long past the need to know but thought that accounting standards had now stopped such sale and leaseback deals escaping the balance sheet. I can't see TfL arguing successfully it's an operating lease. And I think IFRS16 removes even that distinction from next year for plant and machinery so TfL would have to show a “right to use the stock” asset and a "lease" liability on their balance sheet. It would be much cheaper if the Treasury borrowed the money directly. Cheaper for TfL, yes. Whether it's cheaper for the country depends on what the bond markets decide about UK national debt. And people outside London paying increased fares year by year might ask why Londoners who don't should be bailed out. Yes, that does the raise the question of why TfL is still freezing Tube fares when it doesn't have enough budget to renew life-expired fleets. Because the Mayor made it an election commitment. If he goes back on that, he may well not get re-elected, which party politics aside, will very likely cause turbulence costing more than this one-off deal's low interest rates on money to prop up day to day operations; which they can't raise as a free-standing loan because that's not how public financing works. Again, get your facts straight: this is not to prop up day-to-day operation. I know you love speculating without facts, while pretending to know what you're talking about, but you could have at least read the tweet that started this thread. Whatever the reason, if it this has been devised by Boris or some other Tory mayor you can gaurantee corbyn, abbot and the other usual suspects would be making hay in parliament and on TV about it. You'd be able to hear the squeals of righteous indignation from across the channel. But because its little khan golden boy there hasn't been a squeak from any of them. |
#3
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TfL rolling stock crisis
In message , at 13:50:15 on
Mon, 8 Jan 2018, Recliner remarked: you could have at least read the tweet that started this thread. The one which was deleted before I had a chance to. That one? -- Roland Perry |
#4
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TfL rolling stock crisis
On Mon, 8 Jan 2018 14:02:31 +0000, Roland Perry
wrote: In message , at 13:50:15 on Mon, 8 Jan 2018, Recliner remarked: you could have at least read the tweet that started this thread. The one which was deleted before I had a chance to. That one? Yes, that one. Hint: Chris quoted it in his posting. |
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