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The new transport agreement is about how to develop transport in the capital region. This is what Prime Minister Bjarni Benediktsson said last night in Hilferina. He said the agreement is about the long-term vision, about how the government envisions solving the main challenges of road construction, “but at the same time using a public bus system throughout the capital region, which is a very efficient way. It is a more accessible and promising option for more residents of the capital,” Bjarni said.
Furthermore, in the long term, the extensive development of pedestrian and bicycle paths throughout the capital region will revolutionize all transportation in the region. Newly adopted transport agreements It was pointed out that about 80 km of new road would be paved in addition to the 20 km already paved on the treaty road.
“That’s the vision. It’s about people having real choices. It’s a competitive field. Instead of us all being stuck in traffic, we can all find our way between places without taking too much time away from work, home, leisure or other activities. To do that, you need the right mix of these options,” Bjarni said.
Bjarni said that while the construction costs were high, they were not comparable to total investments in transport outside Iceland’s capital region.
The loss-making operation of the public bus system will not last long
Many of the questions people asked during the planning and construction could not be answered at the time. “Once you do this, people want to know the answers to all kinds of questions. How much will it cost to take the bus? Is this special lane in the middle or on the edge? How much money do you plan to invest and how long do you plan to operate the bus system at a loss? And so on. Many of these questions cannot be answered today,” Biyani said.
He said the loss-making business of the bus system would not last long, just like other public and private businesses. “In any business, public or private, you don’t do this. Of course, it’s also a learning curve. If increasing participation or usage of the bus system as per the announced vision doesn’t go well, then you have to do something. Then you have to reduce the scope and cost. Construction is the most expensive thing in all of this, but it will always play out in some way.”
Saying the cost is too high “suppresses discussion”
As Centre Party Chairman Sigmundur Davíð Gunnlaugsson says, he denies that the buildings will cause inflation. The total investment in the new transport agreement is expected to be 311 billion Icelandic kronor by 2040.
“Of course, it’s not a good way to talk about inflation from what we do on transportation. We provide about $20 billion a year in special incentives for energy exchanges,” Bjarni said. These measures reduce revenues for the Treasury. So the revenue model must change to make drivers pay for using the road system, and those who use the most pay the most. That doesn’t seem fair to him.
“Those who are now saying this is going to be so expensive for families and it’s definitely going to cost too much, they’re actually undermining the debate,” Biyani said.
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