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

 


Put the brakes on multi-billion dollar Transmission Gully

21 February 2013

Govt should put the brakes on multi-billion dollar Transmission Gully white elephant

The Government should ditch its Public-Private Partnership (PPP) plans for Transmission Gully following embarrassing testimony today by the head of the New Zealand Transport Agency (NZTA) that revealed a PPP will cost taxpayer three times more than if the motorway was built by the Government itself.

NZTA head Geoff Dangerfield conceded at the Transport and Industrial Relation Select Committee that it would cost the Government $1 billion to build the Transmission Gully motorway, but that service payments under the preferred PPP approach will be triple that over a twenty five year timeframe.

“The Government is locking tax payers into long-term payments for an expensive and unnecessary motorway that will be very profitable for the private consortium building it,” said Green Party transport spokesperson Julie Anne Genter.

"Public-Private Partnerships are just an expensive form of borrowing, and borrowing to build an uneconomic highway is an irresponsible use of taxpayer money.

“The announcement today of a Brisbane motorway PPP going into receivership demonstrates the poor economic returns of building new highways.

“The Government’s proposed PPP model moves all the demand risk to taxpayers. Taxpayers will fund guaranteed payments to a private consortium for decades.

“It is unconscionable that the NZTA has adopted a more expensive funding model. This runs completely counter to normal standards of fiscal decision making expected of Government agencies.

“NZTA is putting the economic interests of the private consortium ahead of the public interest.

"Leaked NZTA documents from last year show that National’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 to delay the projects, increase petrol tax, or borrow.

“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.

"The best option is to upgrade the existing route and invest in other alternatives to take commuter traffic off the road.”

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Flyover Over: NZTA Not Appealing Flyover Decision

The NZ Transport Agency has decided not to appeal the High Court’s Basin Bridge decision, and says the High Court’s findings provide valuable clarity to help guide the development of future infrastructure projects throughout the country. More>>

ALSO:

Developing Crown Land: Government, Auckland Iwi Reach Agreement

The government has reached agreement with Ngati Whatua and other Auckland iwi over developing 500 hectares of excess land in Auckland for private housing which had been under High Court challenge. More>>

ALSO:

Gordon Campbell: On Maurice Williamson

Maurice Williamson seems to have been granted an annual licence to embarrass the National Party, and its that time of year again. Also as per usual, Williamson’s recent exercise in sexism and homophobia has passed by with barely a murmur from his leader. More>>

ALSO:

Green Climate Plan: Shaw Launches 40% Emission Cut Target

Green Party co-leader James Shaw has announced an emissions target initiative for 40% reduction by 2030. He said agriculture has to long been used as a reason for inaction, a roadblock to action... He proposed a tax of 8 cents per kilo of milk. More>>

ALSO:


Images & Video: Four Alternative Flags For Referendum

Flag Consideration Panel chair, Professor John Burrows, said the Panel’s decision had been guided first and foremost by the results of its engagement programme across a range of communities where thousands of Kiwis shared what was special about New Zealand, as well as the Panel’s own selection criteria. More>>

ALSO:

Transport Report: LGNZ Calls For Proactive Approach To Mobilise Regions

LGNZ has today released Mobilising the Regions, its major transport study, which highlights the economic and social impact of strategic transport decisions nationally and in the regions, and the direct link between regional development, national prosperity, social well-being and cohesiveness. More>>

ALSO:

Transport: New Rules Bring Double-Deckers To Our Cities

New rules that allow buses, including double-deckers, to carry more people will ramp up the public transport offering in our cities, Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say. More>>

ALSO:

Cycling:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news