Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


Auckland region/Tranz Rail negotiations

5 September 2000

Auckland region/Tranz Rail negotiations: work details and costs released

The Auckland Regional Council has released figures of estimated costs and details of the work involved to conclude negotiations with Tranz Rail Limited over access to its Auckland rail corridors. This is the first and essential step in what will be a billion dollar project for the region.

“The region is working hard to secure the most crucial aspect to Auckland’s passenger transport future,” says ARC Chief Executive Jo Brosnahan. “It is the public’s right to know what we are spending and how we are spending it.”

The costs relate to the extensive evaluations and details required to implement the complex Heads of Agreement signed by the region and Tranz Rail on 30 June 2000. The $65 million agreement will buy the region a 70-year lease over north and west Auckland rail corridors and rights to an Avondale-Southdown designation, and a $2.25m annual fee will buy a set number of daily “slots” on the North Island Main Trunk Line (the Auckland-Wellington line).

The total percentage of the region’s costs that each council will pay at the end of the day has been determined by an agreed formula.

So far the region has been invoiced $425,340 for legal advice relating to the negotiations. This has included legal due diligence work and legal issues relating to access to the rail corridors (including the setting up of an entity to own the lease, and tax and liability issues associated with each detail of the agreement). Legal advice is expected to continue to cost $100,000-$150,000 per month until the deal is concluded.

The estimated total cost of technical and consultant advice (not all of this work has been invoiced) to conclude the Heads of Agreement deal is $1,030,000. The technical work includes engineering due diligence; establishment of North Island Main Trunk Line maintenance and upgrading costs and definition of maintenance standards; valuation and review of the Avondale-Southdown corridor; a review of the safety of the current regime; the preparation of a funding application to Transfund; commercial advice; peer review of the western and isthmus corridor valuations; a report on the North Island Main Trunk Line stations; environmental and economic impacts; land use planning outcomes; and landscape and visual outcomes. The technical advice is expected to cost a further $200,000 per month until the deal is completed.

There have been no public relations or political consultants employed on behalf of the region in relation to this deal.

“There is an enormous amount of work required to determine all the details of the agreement. We are very aware of the costs, and are being prudent with public money,” said Mrs Brosnahan. “This is the biggest single project that the Auckland region has ever been involved with.”

“We are committed to taking a fully responsible and thorough approach to ensure that the agreement we come to with Tranz Rail is the best deal for the people of Auckland. This is essential if we are to establish the foundations on which to develop a long-term revolution in passenger transport that Auckland so desperately needs.”

“Building a Rapid Transit Network for passengers is a billion dollar project, and it will be in place for generations. It is crucial that we get the foundations right.”

“Traffic congestion is currently costing the Auckland (and national) economy $800 million to $1 billion each year – it would be irresponsible to do nothing.”

Working through the details of the Heads of Agreement has proved to be a lot more complex than at first thought. Currently, the region’s councils are reviewing the mid-September deadline dates. A decision on extended settlement dates will be made on 15 September.

“Politically, working through the deal is a very complicated process. We have to ensure that all seven territorial authorities and the ARC are kept informed and have input. To everyone’s credit, representatives from all councils have been working hard and constructively towards the completion of this deal, while vigorously defending and promoting their constituents’ concerns. The region is working strongly together.”

“The deal will be concluded only with the support of all of the region’s councils, and with central government understanding and support,” said Mrs Brosnahan.


- END -

For further information please call:

Jo Brosnahan, Chief Executive ph 366 2000 x 8227

Or Jo Mackay, community relations officer, ph 366 2000 x 8041


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>

ALSO:

Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>

ALSO:

More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>

ALSO:

Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>

ALSO:

Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>

ALSO:

General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news