Did you know that when governments sell our Infrastructure they often sign away the right to build new Infrastructure without having to pay compensation to the corporations who bought our infrastructure.
This is just another example of how our governments have sold us out.
Why couldn’t politicians channel Rob Sitch and just not signed off on the deal?
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“In Australia, strict "no-compete" clauses that explicitly ban governments from building things are legal limitations on sovereign power.
Instead, agreements utilize Material Adverse Effect (MAE) or Competing Infrastructure clauses. These clauses require state governments to pay steep financial compensation if a new public project reduces the private operator's revenue.
Major privatized assets and long-term public-private partnerships (PPPs) that feature these protective financial mechanisms include toll roads, ports and airports.
Toll roads are the most common assets protected by compensation clauses. If a state government builds a free, high-capacity parallel road that bleeds traffic from the tolled asset, it triggers an MAE claim.
The landmark Kennett-era concession deed famously included an MAE clause. This clause long complicated Victoria's regional transport planning because it protected the operator against state-built projects that diverted traffic.”