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With reference to CLI (Community Infrastructure Levy): Merits of exploiting the development process to pay for infrastructure - Essay Example

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Infrastructure refers to the basic or fundamental systems of a nation or business. Communication, transportation, sewage, electric systems, and water form some of the examples of infrastructure. Infrastructure also includes equipment and services, and stock facilities found in a country. …
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With reference to CLI (Community Infrastructure Levy): Merits of exploiting the development process to pay for infrastructure
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"With reference to CLI (Community Infrastructure Levy): Merits of exploiting the development process to pay for infrastructure"

Download file to see previous pages Infrastructure also includes equipment and services, and stock facilities found in a country. The most significant components of infrastructure include electrical power grid, telecommunication, and networks like airlines and railways. These particular systems are usually high-cost investments though they are very significant to the economic prosperity and development of a country. A country will basically find it difficult or unable to operate properly without infrastructure. On the contrary, expanding and upgrading infrastructure enables a country to meet the augmenting demands that usually emanate from the economic and populace growth (Eichengreen, 2000). Projects of infrastructure can be funded privately, publicly, or via public-private initiatives or partnerships. Formerly, several governments- to a large extent the largest source of financing for the projects of infrastructure- supported the project finance and infrastructure markets with cash and guarantees. However, this support seems to be no longer sustainable because of the significant sovereign debt and deficits levels in the developed countries. By nature the society needs to maintain the quantity and quality of its infrastructure based on the present and the future developments. A tightening of the budgets of several countries in the recent past had led to the exploration of various alternative resources for the financing of infrastructure. Tax revenues have been deemed insufficient to maintain the huge capital required for the development of infrastructure (Pokorna and Mockova, 2001, p 51). Therefore, most countries have resorted to planning for infrastructure, which involves the exploitation of the development process to pay for infrastructure. With reference to the CIL (community infrastructure levy method, this paper will discuss the merits of exploiting the development process to pay for infrastructure. Planning for Infrastructure A larger number of infrastructural developments constitute a huge capital investment where money is spent to institute the infrastructure. The process of planning for infrastructure ensures the presence of a common understanding between the providers of service, developers, and the other stakeholders (Hanak & Reed, 2009). This concept of planning for infrastructure has been a significant consideration for an extended period and its importance demonstrates the deliverability of infrastructure, which has gained eminence in the recent years (Great Britain, 2008). The planning process for infrastructure is connected to the development tenders and assists in ensuring that the population of worth gets good access to facilities and services required (Crown Copyright, 2012). The priority infrastructure plan prepared by the local governments found in Queensland outlines where the infrastructure of sewerage, water, transport, storm water, parks, and land for the community is to be rolled out to service the communities (The State of Queensland, 2010 and Wright and Cleary, n.d). Community Infrastructure Levy The CIL is regarded as a new system of planning charges that the local planning authorities can apply to raise funds from the developers undertaking new projects of building to pay for infrastructure (Levy, 2011). This planning charge system came into force on 6th April the year 2010 via the CIL Regulations 2010. It permits the local authorities in Wales and England to raise funds from the developers who are undertaking a new building project in the area. The amount collected can be used to fund a number of different infrastructure required because of development (Glaeser, 2012). The infrastructure needs includes flood defenses, transport schemes, hospitals, schools, ...Download file to see next pagesRead More
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