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


Taxpayers hit with an extra $2.4b for Transmission Gully PPP

Phil Twyford
Transport Spokesperson

Taxpayers hit with an extra $2.4 billion for Transmission Gully PPP

Building Transmission Gully as a public private partnership (PPP) will triple the cost to the taxpayer - to $3.4 billion - according to documents released under the OIA.

Labour’s transport spokesperson, Phil Twyford, said the use of a PPP would cost an arm and a leg, but the potential benefits were hugely uncertain.

”The only reason the Government wants to do it is that they have blown the budget on their mega motorway projects.

“A PPP for Transmission Gully is a way of building now and paying later, and Government accounting rules mean the liability won’t affect its debt reduction targets. It’s smoke and mirrors.

“Cabinet papers show that having Transmission Gully as a PPP will cost an extra 3 per cent of National Land Transport revenue – or $125 million – every year for 25 years.

“Transport officials confirmed the cost would triple but were unable to cite explicit evidence that handing the project over to the private sector to design and build would offer any specific benefits when they appeared before Parliament’s transport committee today.

“In fact the history of PPPs in big transport projects is littered with financial disasters, with four big projects in Australia falling over in recent years.

“The PPP for Transmission Gully is just one of the ways the Government is desperately trying to fund its out of control motorway building programme. It is already spending $1 billion a year on new motorways, some of which are very low value by the Government’s own figures.

“In order to build more motorways faster the Government is changing the law to allow borrowing for motorways, and is bringing in a petrol tax rise that will net more than $6 billion over the next 10 years – as well as the Transmission Gully PPP.

“This Government’s appetite for motorway projects of dubious economic value is insatiable. To keep on feeding the beast it is willing to gouge the motorist and mortgage future generations.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Australia Deportations: English Relaxed On Immigration Centre Conditions

Labour's Annette King: “There have been numerous reports from inside these detention centres on just how bad conditions are... If they were being held in any other foreign jail, I imagine Mr English would be somewhat concerned. More>>


Schools: Achievement-Based Funding Would Be A Disaster

The Education Minister’s speech to the PPTA Conference raising the spectre of achievement data driving a new funding system would be disastrous, says NZEI Te Riu Roa. More>>

  • Video Out-Link - PPTA Annual Conference 2015 on Livestream (Q+A dicussion suggests funding would be directed to less successful schools.)

  • ALSO:

    ECE Report:

    Key In NY: Prime Minister Addresses United Nations

    Prime Minister John Key has addressed the United Nations General Assembly in New York, focusing on a call for action in Syria and on other conflicts, reform of the veto process and on the UN’s Sustainable Development Goals. More>>.


    Gordon Campbell: On The Lack Of Accountability Over Philip Smith

    In New Zealand, accountability is an exotic creature rarely glimpsed at ministerial level, or among senior management. The flight to Rio by the paedophile /murderer Philip John Smith/Traynor is no exception. More>>


    More On Corrections

    Gordon Campbell: On Putin’s Diplomatic Coup Over Syria

    There’s a simple historical precedent for what is occurring in Syria. During WWII, the Allies joined forces with a known butcher and tyrant – Joseph Stalin of the Soviet Union – in order to defeat a greater evil, Nazi Germany… More>>


    Key 'Didn't Know': Brownlee Seeks Pandas In China

    While Defence Minister Gerry Brownlee is in China pushing a taxpayer funded deal to bring two pandas to New Zealand, the country’s military look set to be hit with a pay freeze, Opposition Leader Andrew Little says. More>>


    Scoop Business: GCSB Willing To Extend Cyber-Attack Programme To Local ISPs

    The Government Communications Security Bureau’s ‘Cortex’ cyber-security programme has been successful in helping identify and mitigate a series of cyber attacks since its introduction and an extension to cover local internet service providers is still on the cards... More>>


    Get More From Scoop



    Search Scoop  
    Powered by Vodafone
    NZ independent news