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

 


Public sector commitment crucial for PPPs to succeed


27 November 2013

Public sector commitment and certainty crucial for PPPs to succeed

Of course Auckland needs to take a good hard look at public-private partnership models for funding badly needed infrastructure says Auckland Chamber of Commerce head Michael Barnett.

With a long list of unfunded major projects it is past time that Auckland seriously looked at new options to relieve the financial burden on ratepayers and taxpayers.

The potential of PPPs and other alternative options in use elsewhere such as more efficient use of assets and greater ‘user pay’ should be part of the debate.

Putting aside the consideration that the Mayoral Funding Group that earlier in the year looked at alternatives for funding Auckland transport didn’t seriously look at these options, Mr Barnett agreed that PPPs deserved serious attention. “But we can’t keep debating these options endlessly. They need to be tied to specific projects and provided as a specific funding solution.”

The E&Y report makes clear that the private sector will only become interested in infrastructure PPPs when they are assured the public sector is fully committed.

We need any PPP project to be defined exactly and undertaken in a way that ensures the private sector is contracted to take on all the risk, and especially traffic risk in transport projects.

Another critical factor in defining a PPP project is to ensure the scale will be sufficiently attractive to the finance market.

Auckland projects of scale that might provide scope for a PPP could be to link the long-debated Penlink project to provide a toll road to the Whangaparoa Peninsula with the Road of National Significance (RONS) extension of SH1 between Puhoi and Wellsford, suggested Mr Barnett.

“The principle of PPPs is not a debate we can sensibly have unless it is tied to specific projects and a business case showing the benefits and the specific projects value,” said Mr Barnett.


ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Parliament Today:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Road Crime: Wicked Campers Vans Classified As Objectionable

The definition of publication includes any "thing that has printed or impressed upon it, or otherwise shown upon it, 1 or more (or a combination of 1 or more) images, representations, signs, statements, or words", The Classification Office has previously classified such 'things' as billboards, t-shirts, and even a drink can. This is the first time the Classification Office has classified a vehicle. More>>

ALSO:

'When New' Repairs: Landmark EQC Settlement

The Earthquake Commission has cut a deal with 98 Canterbury homeowners that affirms the government entity's responsibility to repair earthquake-damaged property to a 'when new' state, as well as covering repairs for undamaged parts of a property and clarifying its position on cash settlement calculations. More>>

ALSO:

Gordon Campbell: On Kiwirail’s Latest Stint In The Dogbox

The denigration of Kiwirail continues. The latest review (based on a 2014 assessment) of the options facing the company have enabled Kiwirail to be hung out to dry once again as a liability and burden on the taxpayer. More>>

ALSO:

Royal Society Report: Good Opportunities To Act Now On Climate Change

There are many actions New Zealand can and should take now to reduce the threat of climate change and transition to a low-carbon economy, a report released today by the Royal Society of New Zealand finds... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news