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

Greens: Oil Drilling Face-Off With Labour

The plan is the second component of the Party’s environmental priority this election: Rivers clean enough to swim in again, and beaches safe from oil spills.

The Green Party loves New Zealand and will create a cleaner environment where our beaches remain open for swimming, not closed for oil spills.

The key policy points in the Green Party’s plan to protect our beaches from oil spills are to:
1. Prohibit deep sea oil drilling;
2. Implement compulsory shipping lanes for coastal shipping;
3. Build Maritime New Zealand’s oil spill response capability; and
4. Introduce a stronger legal framework so that when accidents do happen, the New Zealand taxpayer does not have to pay for the clean-up. More>>

 

Parliament Today:

Minister Told Of FBI Investigation, Says INZ: Coleman Must Quit Or Be Sacked Over Dotcom Case - Harré

Immigration New Zealand has done the right thing in distancing itself from Jonathan Coleman’s claims that ministers were not aware of FBI involvement in Kim Dotcom’s residency application, says the Internet Party. More>>

ALSO:

Valedictory Season: Maori Party Founders Say Goodbye

Two major Maori MPs gave there farewell speeches to Parliament Thursday outlining their history, experiences, triumphs and regrets. More>>

ALSO:

Resignation Not Accepted: Transport Minister Breaches Aviation Security Rules

"Running late for a plane at Christchurch Airport, I without thought breached airport and airline security rules by entering the gate lounge through a door usually used for exit only..." More>>

ALSO:

TAIC Report: Urgent Recommendations After Melling Rail Accident

The Transport Accident Investigation Commission has made four urgent recommendations to KiwiRail following the accident two months ago (27 May) when a Matangi passenger train collided with a stop block at Melling Station, Lower Hutt. More>>

ALSO:

Red Tape: Local Regulations Go Under Microscope

The Government says it is accepting nearly all of the recommendations the Productivity Commission has made on ways to improve local regulations. More>>

ALSO:

Spending Questions: Claudette Hauiti To Step Aside At Election

National Party President Peter Goodfellow confirms that he has received notification from List MP Claudette Hauiti that she plans to step aside at the 20 September election. More>>

ALSO:

EPA: Board Of Inquiry Rejects Basin Flyover By Majority Of 3 To 1

The independent Board of Inquiry delegated to decide on the Basin Bridge Proposal has, by a majority decision (3 to 1), cancelled the Transport Agency’s Notice of Requirement and declined its resource consent applications for the construction, operation and maintenance of a flyover on State Highway 1 in Wellington City... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news