ICE Discussion Paper: Potential implications of the nationalisation of infrastructure

Key points include:

• Ultimately, whether services are in public or private ownership, a long-term approach to asset management and investment is needed, supported by sensible regulation, good governance and accountability in order to ensure best value for consumers.
• Public support for nationalisation as a binary concept is high, but more needs to be done to close the information deficit about the tangible benefits private investment delivers.
• Nationalisation of rail would have marginal short-term impacts, but in the longer-term an integrated network could improve decision-making and efficiency.
• At present, the water and energy sectors are funded almost wholly by private investment. There is a real risk that outright nationalisation would see investors move their capital elsewhere, with the public sector then needing to meet the investment requirements for much-needed infrastructure improvements.