Paying for Auckland’s Future Transport

Office of the Mayor
News Release
13 February 2012

Getting Auckland Moving:
Paying for Auckland’s Future Transport

Aucklanders are being asked how they believe major transport projects should be funded.

This week Auckland Council’s Strategy and Finance Committee will consider a discussion document that seeks input on alternative funding options for transport.

The document highlights that an already congested Auckland roading system will have to cope with a population increase of more than 50 per cent within three decades, to more than 2.2 million people.

It says that if Auckland is to improve its quality of life and grow its economy while absorbing that population growth, we need to find alternative funding sources to pay for fixing Auckland’s transport system.

The projects that need to be funded include the combined Auckland Manukau Eastern Transport Initiative (AMETI) and Onehunga to East Tamaki (East-West) Link, the City Rail Link, an additional Waitemata Harbour crossing, the extension of the Northern Busway, the Avondale-Southdown Rail Link and ferry service improvements.

It is clear that simply increasing taxes and rates will not cope with an estimated $10-15 billion funding shortfall.

It is also clear that road users should not be the single focus in funding the deficit.

The Mayor says he had an open mind on what alternatives should be considered and that every option should be on the table if we are going to avoid a transport crisis.

“We have a three-year window in which to decide what approach to take, but doing nothing will mean leaving a legacy of transport chaos to our kids,” says Len Brown.

“We need the buy-in of Aucklanders and their agreement on the way forward to unclog our roads and unleash the potential of all Auckland.”

“Our top priority is fixing Auckland’s transport problems. We know what they are, we know doing nothing is not an option, and it is important that we as a region have open and frank conversation about what options we are going to pursue to fund the much-needed solutions.

Twelve options are raised in the report:

• general rates
• targeted rates
• development contributions
• regional income tax
• regional payroll tax
• regional sales tax
• tax increment funding
• regional fuel tax and RUC diesel levy
• tolling new roads
• road pricing on existing roads
• additional car parking charges
• visitor tax
• airport departure tax

The discussion document will be available on the Auckland Council website, at council service centres and libraries.

Feedback from Aucklanders will be sought from 24 February to 23 March. Verbal submissions will be heard from 10 April to May 7.

In June, Auckland Council will decide which alternatives it wishes to investigate in more detail and engage key stakeholders and the public in the design of any system.

Ends