§ Ms. RuddockTo ask the Secretary of State for Transport whether the long-term cost of financing highway structural maintenance on the primary route network through capital rather than revenue expenditure will be reduced or increased as a result of the changes proposed by his Department.
§ Mr. Chope[holding answer 25 March 1991]: The benefits of structural maintenance are primarily felt in future accounting periods. To compare the real cost of financing by means of borrowing and the cost of charging expenditure direct to revenue account, it is necessary to discount the nominal value of cash payments in future years to reflect the time intervals before they are made. The result of the comparison will depend on the rate of discount and the rate of interest.