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

 


Transmission Gully PPP an expensive burden for taxpayers

21 November 2012

Transmission Gully PPP another expensive burden for taxpayers

A Public-Private Partnership for Transmission Gully is an expensive form of borrowing for an uneconomic highway, Green Party transport spokesperson Julie Anne Genter said today.

The National Government today announced its decision to have a private consortium build the Transmission Gully project, which the New Zealand Transport Agency’s own estimates show will produce just 60 cents of benefit for every dollar spent on it. The Government will then repay to the consortium the cost of the project plus interest and profits over 25 years.

“Public-Private Partnerships are just an expensive form of borrowing, and borrowing to build an uneconomic highway is an irresponsible use of taxpayer money,” said Ms Genter.

“How much will this billion dollar project cost by the time the private consortium’s profits and interests costs are added to the bill?

“Leaked NZTA documents show that the National Government’s extravagant and uneconomic highway projects have created a huge hole in the transport budget. The documents warned that the only way to fill the hole was delay the projects, increase petrol tax, or borrow.

“National has chosen to borrow. Public-Private Partnerships are a cover for governments to borrow from the private sector at high effective interest rates while keeping the debt off their books.

“A wealth of experience from Australia shows that Public-Private Partnerships are used to disguise the cost of uneconomic projects.

“Time and again, costs blow out, traffic forecasts are not met, private consortia collapse, and it is the taxpayer who is left footing the bill.

“Just this month, the private company operating the Brisconnections highway called in insolvency analysts and its shares were placed in a trading halt. The Cross City Tunnel in Sydney and the Lane Cover Tunnel in Brisbane have lost billions.

“Why would we copy in New Zealand what has already failed in Australia?

“Rather than waste billions on an uneconomic highway and burden taxpayers with 25 years of debt repayments, the National Government needs to take a smart, green approach to transport spending.

“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.

“The best option is to defer indefinitely Transmission Gully and the other low value highway projects and, instead, direct the transport budget to passenger transport, walking, and cycling.

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

Further information:
Transmission Gully BCR
Collapse of Brisconnections
NZTA briefing paper – October 2012

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Two Dead, One Injured: Suspect Charged After Ashburton Shooting

Russell John Tully has appeared in Christchurch District Court. Tully has been remanded in custody on charges of murder of Peg Noble and Leigh Cleveland and attempted murder of Lindy Curtis.

The victim’s families and the victim have requested that their privacy be respected and will not be making a statement at this time.

Police have formed a picture of what has occurred yesterday and are appealing for further information and sightings .... More

 

Parliament Today:

John Key Press Conference: Ashburton Shootings, Judith Collins Inquiry

Prime Minister John Key has delayed the release of Nationals’ fiscal policy in light of this morning’s shooting at a Work and Income office in Ashburton... Key also answered questions about Judith Collins, and confirmed that independent inquiry will be held with regard to allegations made against Collins. More>>

ALSO:

Internet MANA: Georgina Beyer Rocks The Waka

“There is now, and always will be, a range of views about many issues within our movement and members are free to express them, but Georgina’s views on Kim Dotcom are not shared by the MANA Movement leadership or the vast majority of MANA members and supporters around the country” states MANA Candidate for Waiariki, Annette Sykes. More>>

ALSO:

IGIS Update: Inquiry Into Release Of NZSIS Information

The Inquiry would be conducted in private and individuals would appear before her separately over a period of more than a week. She does not intend to name those summoned to give evidence until her report is published. “I can confirm that all persons summoned will be required to appear under oath...” More>>

ALSO:

Gordon Campbell:
On John Key’s ‘Blame It On Judith’ Strategy

Right now, Prime Minister John Key seems intent on limiting the scope of any inquiry into his government’s dealings with Cameron Slater. The declared aim is to make that inquiry solely about Judith Collins’ behavior with respect to the Serious Fraud Office. More>>

ALSO:

Maori Council Lawyers' Statement: Supreme Court Decision On Maori Water Rights

“…the Supreme Court refused to give Pouakani people what they asked for, but may have given them something much, much better instead… the Supreme Court has questioned whether the Crown owns the River at all.” More>>

ALSO:

Gordon Campbell: On The Debate, And The Collins Accusation

Debating is a peculiar discipline in that what you say is less important than how you’re saying it. Looking poised, being articulate and staying on topic generally wins the day – and on that score, Labour leader David Cunliffe won what turned out to be a bruising encounter with Prime Minister John Key last night on TVNZ. More>>

ALSO:

Gordon Campbell: On Winston Peters' Latest Bout Of Immigrant Bashing

It is only one poll, but rather than cannibalising each other's vote, Colin Craig and Winston Peters do seem to be managing to find the room to co-exist... Few are questioning how Peters got to this happy place, and what it says about the mood of the electorate. More>>

ALSO:

More Immigration News: First People Trafficking Charges

The first people trafficking charges in New Zealand have been brought by Immigration New Zealand (INZ)... The defendants have been charged under the Crimes Act 1961 for arranging by deception the entry of 18 Indian nationals into New Zealand. More>>

Collins 'Misinterprets Media Reports': "Too Compromised To Remain Justice Minister"

Bizarre claims by Judith Collins this morning that she had been cleared of inappropriate behaviour by the Privacy Commissioner demonstrates she is too compromised to remain Justice Minister, Labour MP Grant Robertson says. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news