Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Infrastructure Bonds and transport investment

26 August 2004

Study backs Infrastructure Bonds for transport investment

The Automobile Association believes a recent study by the Allen Consulting Group and Infometrics presents a cast-iron case for Government borrowing to complete regional transport plans faster.

“We believe the Government is on the right track with its suggestion that it could sell bonds to fund infrastructure investment and this study provides ample justification for such a programme,” AA Public Affairs Director, George Fairbairn said.

The Allen-Infometrics study assessed the economic and fiscal benefits, together with some of the environmental costs, of four transport ‘packages’ and found in each case that, even after making the annual debt payments, the Government would make a return on its investment through increased tax revenue. The four packages were: The Auckland western ring route (SH18 and SH20); The Tauranga strategic roading network; The Wellington regional land transport strategy; Transit passing lane strategy.

While the Government has increased funding and the pace of development on elements of these packages the study shows that it can afford to be bold and invest more in such infrastructure.

“The Allen study opens the door to a new approach to infrastructure investment in New Zealand and we believe it is a significant contribution to our understanding, as a nation, of the central role roading and transport plays in the economy,” Mr Fairbairn said.

Most significantly the study found that even with the additional costs of borrowing the net economic effect of the new roads meant the Government could afford to reduce taxes.

“While the Allen study is an evaluation of four specific packages there is no reason why its methods and principles could not be applied to other packages of infrastructure development. While the country is doing well fiscally and economically we need to invest in projects that continue to improve our overall standard of living. This report proves that transport is definitely one of those investments,” Mr Fairbairn said.

The study was commissioned by the New Zealand Automobile Association, in association with Greater Wellington Regional Council; Priority One (Tauranga); Infrastructure Auckland, Employers and Manufacturers Association (Northern) and Auckland Chamber of Commerce; Road Transport Forum NZ and Business New Zealand.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news