Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Govt plans borrowing and tax hikes to fund unneeded highways

16 November 2012

Govt plans borrowing and tax hikes to fund unneeded highways

The National Government’s reckless plan to build unneeded highways has created a huge budget hole that taxpayers will be forced to pay for with higher taxes, Green Party transport spokesperson Julie Anne Genter said today.

The Green Party has obtained an internal New Zealand Transport Agency document which states there is a $1.7 billion shortfall between the cost of the Government’s transport plans and the projected revenue as a result of the huge cost of National’s pet highway projects and stagnant traffic volumes resulting in lower than projected fuel tax revenue.

The briefing outlines three options to close the gap: delaying the so-called ‘Roads of National Significance’ by up to five years (which is marked as “not acceptable”); borrowing the money and using Public-Private Partnerships as a form of borrowing, which would only shift the cost to the taxpayer into the future and constrain future transport budgets; or increasing petrol tax by nine cents a litre.

“Kiwis will be paying more to fund National’s unneeded and uneconomic highways, and they will have few options to avoid rising fuel prices.

“The mammoth $1.7 billion funding gap in the transport budget has been created by uneconomic projects like the Kapiti Expressway that will cost over half a billion dollars for $120m worth of value. Lower than expected traffic volumes just further prove these expensive highways should not be the priority.

“National has created a fiscal timebomb and its plan is to either foist the cost on to future taxpayers by borrowing the money or increase petrol tax by nine cents a litre.

“We have an opportunity right now to invest in better buses and trains, and safer walking and cycling – this frees up the roads for those who are driving and gives Kiwis more options to avoid rising fuel prices. But the Government is planning to spend 85% of the money available for new capital projects over the next decade on a few state highways, and less than 5% on smart, green alternatives.

“The best option is to defer indefinitely the Holiday Highway and the other low value highway projects and, instead, direct the transport budget to passenger transport, walking, and cycling as suggested by the latest Pure Advantage report.

“This would reduce our $8 billion a year bill for imported oil, lower our greenhouse gas emissions, and create more jobs,” said Ms Genter.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Joint Statement: Establishment Of NZ-China Strategic Partnership

At the invitation of Governor-General Lt Gen The Rt Hon Sir Jerry Mateparae and Prime Minister The Rt Hon John Key of New Zealand, President Xi Jinping of the People’s Republic of China made a state visit to New Zealand from 19 to 21 November 2014.

During his visit, President Xi Jinping met with Governor-General Jerry Mateparae, and held talks with Prime Minister John Key. The leaders had an in-depth exchange of views on bilateral relations as well as regional and international issues of common interest. More>>

 
 

Parliament Today:

Savings Targets: Health Procurement Plan Changes Direction

Next steps in implementing DHB shared services programme Health Minister Jonathan Coleman says the Government has agreed to explore a proposal put forward by DHBs to move implementation of the shared services programme to a DHB-owned vehicle. More>>

ALSO:

More on Health Policy:

Auckland Unification: 'No IT Cost Blowout' (Just More Expensive)

Following discussion of an update on Auckland Council’s Information Services Transformational Programme at today’s Finance and Performance Committee, council has released the report publicly. More>>

ALSO:

Other Expensive Things:

Gordon Campbell: On The SAS Role Against Islamic State, And Podemos

Only 25% of the US bombing runs are even managing to locate IS targets worth bombing. As the NYT explains at length, this underlines the need for better on-the-ground intelligence to direct the air campaign to where the bad guys have holed up... More>>

ALSO:

Public Service: Commission Calls For Answers On Handling Of CERA Harassment

EEO Commissioner Dr Jackie Blue is deeply concerned about the way in which the State Services Commission has handled sexual allegations made against CERA chief executive Roger Sutton this week and is calling for answers. More>>

ALSO:

Gordon Campbell:
On Andrew Little’s Victory

So Andrew Little has won the leadership – by the narrowest possible margin – from Grant Robertson, and has already been depicted by commentators as being simultaneously (a) the creature of the trade unions and (b) the most centrist of the four candidates, which would be an interesting trick to see someone try in a game of Twister. More>>

ALSO:

China President Wishlists: Greens Welcome Xi, But Human Rights Need To Be On Agenda

“President Xi has made some progress on climate change, but he must also lift the Chinese government’s game on human rights issues,” Green Party Co-leader Dr Russel Norman said... It is important that our Government continues to urge the Chinese government to show restraint and respect human rights in both Tibet and the Xinjiang province.” More>>

ALSO:

Airport Security Breach: CAA Fines Minister

Minister Brownlee has been issued an infringement notice and is required to pay a $2000 infringement fine for breaching Civil Aviation Rule 19.357(b), which states no person may be in an airport security area without an appropriate identity card or document. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news