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

 


Coalition deal making heightens Transit shortfalls

9 December 2005

Coalition deal making heightens Transit shortfalls

"Blaming escalating construction costs for Transit deferring improvements to one of New Zealand's deadliest stretches of highway is misleading", says New Zealand Council for Infrastructure Development CEO Stephen Selwood, "in fact actual tender prices are not materially different than the budget. The real issue is that Land Transport New Zealand's projected funding is under significant pressure, pressure that has only been made worse by recent coalition deal making."

Mr Peters' coalition agreement with Labour not to toll the Tauranga Harbour Bridge means that there will be $110 million less available to Land Transport New Zealand (LTNZ) than there was prior to the election. A problem only exacerbated by falling fuel tax revenues as a result of consumer reaction to price increases.

"Two priority projects on Transit's 10 year plan have already been deferred, the unforgiving 7km stretch at Mangatawhiri and New Plymouth's Bell Block, and we are aware that other project deferrals are likely", says Mr Selwood.

"In the last five years 40 New Zealanders lost their lives on the 7km stretch at Mangatawhiri. LTNZ crash data shows social costs of serious and fatal crashes at the site exceed $500,000 per kilometre per year. That is a $35 million saving per annum, and not much less than the $46 million total projected cost of the project.

"The benefits of proceeding with projects like Mangatawhiri are plain to see. Accident statistics following recent upgrades on the adjacent Waikato expressway show that a high quality separated highway can more than halve accident costs. Transit New Zealand's own numbers show the benefit cost ratio for the Mangatawhiri project are four to one. That means a four dollar return for every dollar invested.

"While deferring projects might help to balance the budget, the costs to the nation of continued deferral of priority projects are of much greater significance and far beyond any marginal saving on tender prices".

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: 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>>

ALSO:

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:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news